2009-09-23 Crossing Over to IFRS: Frequently Asked Questions

This newsletter contains a memorandum which discusses questions that have frequently arisen about the transition balance sheet, and other related issues, resulting from mandatory adoption of IFRS in Canada in 2011.

The 2011 date for mandatory adoption of International Financial Reporting Standards (“IFRS”) in Canada is in sight and entities now are focusing on preparing first-time IFRS financial statements, including the balance sheet that converts the entity’s Canadian GAAP financial statements over to IFRS (“the transition balance sheet”). In this memorandum, which is attached below, we discuss questions that have frequently arisen about the preparation, presentation and disclosure of this transition balance sheet, and other related issues. For convenience, the memorandum assumes an entity with a calendar year-end will begin reporting under IFRS in 2011 and provide comparatives only for 2010, so that the date of the transition balance sheet is January 1, 2010.

Consider the questions with care. 2011 is closer than it might seem and, as we discuss further below, some decisions will need to be made and documented by January 1, 2010 if desired accounting outcomes are to be achieved.

Crossing Over to IFRS: Frequently Asked Questions (284 KB) Download the full PDF report.