Develop a conversion plan — in advance
Making the transition from Canadian GAAP to IFRS is not just a technical accounting exercise. It will present unique challenges, as it impacts many other areas beyond your organization’s finance and accounting functions. IFRS also places significant responsibility on management to change the way they communicate business results to the market.
Early planning is key
These fundamental changes require much preparation to ensure a smooth adoption and conversion process. Planning is key to your company’s success, since the Accounting Standards Board (AcSB) has proposed that Canadian GAAP for public companies will migrate to IFRS over five years until 2011. With this imminent deadline, businesses can’t afford to underestimate the time needed to implement the complex work required for migration.
What you need to do
Since considerable work needs to be achieved in a short period of time, PwC recommends a three-phased approach:
- Diagnostic preliminary review: To reveal key differences between Canadian GAAP and IFRS and determine impact on your company’s financial reporting.
- Conversion awareness: Stay on top of new and future accounting pronouncements and determine impact of changes.
- Embed IFRS into your organization: Assign appropriate resources to IFRS-conversion projects. Train executives and board members on impact and changes under IFRS.
How PwC can help
Most viable IFRS conversion approaches vary from one organization to another; however, a critical success factor combines early consideration with well-planned and skilled implementation. Find out more about how we can help you with your conversion plan. Contact a professional in your area.
