While International Financial Reporting Standards (IFRS) will eventually become the primary reporting language for financial institutions around the globe, Canadian banks already have a head start when it comes to implementing the language: Canadian Generally Accepted Accounting Principles (GAAP) is principles based, like IFRS, instead of rules based. And while the adoption of IFRS might appear complicated and expensive to Canadian financial institutions, the size and complexity can be managed if banks plan their implementation approach early and carefully.
Nevertheless, there are accounting differences between GAAP and IFRS that Canadian banks will need to closely examine and identify. The transition to IFRS will also change the way Canadian public companies present their business results to analysts, investors and other stakeholders.
Read this issue of Perspectives on the Canadian Banking Industry to learn how your organization can set an IFRS implementation plan in motion.