Canada - The IFRS Impact

The effects of the switch from Canadian GAAP to International Financial Reporting Standards (IFRS) are starting to sink in with the Canadian CA community, according to Resources Global Professionals’ third annual IFRS survey. In a poll of 273 CAs from public practice, government and industry, nearly nine in 10 (87%) said the greatest impact of the IFRS changeover will be in companies’ valuation of assets and liabilities. Respondents also said organizations should expect “somewhat” of an impact on share prices (46%), compensation plans (49%) and debt covenants (50%). In addition, a large percentage of CAs surveyed (87%) believe that a company’s reported financial results will change due to IFRS, while 72% think Canadian users of financial statements will prefer IFRS. (Read the article The IFRS Impact.)