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Challenges for investment funds in a world of change
Accounting for investments under IFRS — Consolidation

The incorporation of International Financial Reporting Standards (IFRS) for all Canadian publicly accountable enterprises will have a significant impact on the country's investment management industry. Since 2004, most investment funds in Canada have not consolidated controlled investments as a result of the application of Accounting Guideline 18 — Investment Companies (AcG-18), recording investments at fair value in all but rare circumstances. This may no longer be the case under IFRS, as the new standard does not offer any comparable guidance.

The following publication discusses many of the key issues arising out of Canada's adoption of IFRS as it pertains to the investment management sector, including the impact on AcG-18 and AcG-15. It also provides a general framework for accounting for investments under existing IFRS.

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