Migrating to International Financial Reporting Standards (IFRS) for manufacturing and consumer products companies throughout Europe and Australia has revealed some interpretation and application challenges unique to the manufacturing and consumer products industry.
Even though the Canadian changeover to IFRS is slated for 2011, the transition's scale means decisions must be made today. Accounting information will need to be converted to IFRS starting January 1, 2010 for comparative financial statements that will be reported for 2011's first quarter. In addition, once a company begins migration, it must provide quarterly disclosures in its Management Discussion and Analysis related to expected changes in accounting policies resulting from the changeover to IFRS.
The following publication shares some of the significant differences between Canadian GAAP and IFRS that will specifically impact manufacturing and consumer products companies.