The implementation of International Financial Reporting Standards (IFRS) for Canadian engineering and construction companies may at first look like a complicated, expensive and difficult process. However, the size and complexity can be managed if companies plan ahead before the new accounting standards become effective.
Many engineering and construction companies throughout Europe and Australia have completed their transition and have been applying the new standards since January 1, 2005. Their conversion to IFRS has revealed some interpretation and application challenges unique to this industry sector.
The following publication highlights some of the more significant differences between Canadian GAAP and IFRS that will specifically impact engineering and construction companies. These areas include property, plant and equipment, start-up costs, borrowing costs, leases, revenue recognition and joint ventures.