Canadian publicly accountable enterprises will be required to use International Financial Reporting Standards (IFRS) for fiscal years beginning January 1, 2011. What about Canadian private enterprises and how does this impact private equity companies?
Private enterprises will have an option to adopt either IFRS or Canadian GAAP for private enterprises. Both standards would be effective for annual financial statements relating to fiscal years beginning on or after January 1, 2011. Early adoption of these standards is possible.
The decision will not be easy as there are many variables that a private enterprise will need to consider before making the final decision. Read this publication to find out the various factors that may determine which accounting standard to adopt.