PUBLIC COMPANY SERVICES

IFRS Conversion and Reporting

International Financial Reporting Standards (IFRS) Conversion and Reporting

Effective January 1, 2011, the Accounting Standards Board of Canada requires all Canadian publicly accountable enterprises to adopt new International Financial Reporting Standards (IFRS). As such, a complete conversion will be required for all financial statements prepared for interim and annual periods. In addition, comparative figures must be presented at the time of conversion which will require companies to prepare an IFRS opening balance sheet as early as January 2010. Many areas beyond accounting and financial reporting may potentially be impacted by the conversion to IFRS, such as: budgeting, compensation and incentive plans, human resources, and communication with key stakeholders. Early planning is critical to ensure that leaders and their organizations are prepared and positioned for a successful conversion.

Avisar’s team of public company specialists are equipped to provide the necessary services to assist companies in transitioning to the new International Financial Reporting Standards with ease and success. Key IFRS services include:

Scoping Phase

The primary objective of this phase of the conversion is to assess the overall effort required by the company and a high-level analysis of the impact on the company. Key objectives include:

  • Identification of the key IFRS to Canadian GAAP differences applicable to the company for each financial statement component
  • Graph summary of high and low impact areas
  • Summary of key issues by financial statement area
  • Outline of the financial statement impact
  • Details of significant disclosure impacts and differences
  • Identification of the exemptions available on transition
  • Identification of additional information requirements for corporate reporting

Timing

Fall 2009

Planning Phase

This phase provides a more detailed analysis of the conversion process, with the main deliverable being a detailed conversion plan which includes the following:

  • Conversion timeline
  • Identification of requirements for each quarter
  • Quantification of main IFRS to Canadian GAAP differences
  • Recommendations for adoption of exemptions available in IFRS 1
  • Define new accounting policy changes
  • Assess impact on financial controls and financial reporting systems
  • Systems impact analysis and recommendations

Timing

Calendar year-ends: Fall 2009
Non-calendar year-ends: third quarter of year ending in 2010

Transition and Implementation Phase

This final phase includes the work necessary to fully implement IFRS and produce IFRS compliant financial statements. Outcomes include:

  • Calculation and mapping of conversion adjustments
  • Preparation of reconciliations of impacted areas
  • Preparation of full pro forma financial statements including all disclosures
  • Preparation of the opening balance sheet
  • Preparation of disclosures for MD&A

Timing

Calendar year-ends: Ongoing throughout 2010 and first quarter of 2011
Non-calendar year-ends: Ongoing throughout year ending in 2011 and first quarter of year ending in 2012.

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