Private Enterprises

The Accounting Standards Board approved the final accounting standards for private enterprises in Canada. The new standards have been issued and are available for 2009 reporting for entities that choose to adopt them early.

The  standards give Canadian businesses the ability to choose to adopt new "made in Canada" standards or International Financial Reporting Standards (IFRSs). Private enterprises must decide which of the sets of standards to adopt for years beginning on or after January 1, 2011. Early adoption is permitted.

 

Accounting standards for private enterprise were developed from a lengthy consultation process that ensured that private enterprises of all sizes across Canada were able to provide input into the standard-setting process. Consultation was the key to producing new financial reporting standards that respond to the needs of both private enterprises and the users of their financial statements.

Notable changes include simplification of recognition, measurement and presentation in areas that were identified as being overly complex, particularly accounting for financial instruments. The simplified accounting requires less use of fair values. The new standards also significantly reduce the burden of disclosure requirements.

The CICA, along with Provincial Institutes/Ordre is committed to supporting members and the wider business community in managing the transition to new accounting standards for private enterprises. The menu on the left hand side of this page leads you to information, tools and training you need to successfully manage the transition.