This newsletter discusses rule changes on acceptable GAAP proposed by CSA in light of the Accounting Standards Board's confirmation that publicly accountable profit-oriented enterprises will be required to use IFRS in 2011.
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AcSB confirms 2011 as the date for changeover to IFRS
| On February 13, 2008, the Accounting Standards Board confirmed that publicly accountable profit-oriented enterprises will be required to use International Financial Reporting Standards (“IFRS”) in interim and annual financial statements for fiscal years beginning on or after January 1, 2011. Comparatives must be prepared on the same basis. The press release announcing the decision is attached.
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| CSA proposes changing rules on acceptable GAAP for domestic issuers | In response to the AcSB decision, on February 13, 2008, the Canadian Securities Administrators (“the CSA”) have issued a concept paper (52-402) proposing to amend securities rules on acceptable accounting principles. Under the proposals:
- Domestic issuers would be permitted to adopt IFRS for financial years beginning on or after January 1, 2009.
- Canadian SEC registrants would NOT be allowed to use US GAAP for financial years beginning on or after January 1, 2009, with one exception. An issuer that files US GAAP financial statements in Canada for its most recent financial year ending on or before December 31, 2008 could continue to do so for five years.
- Financial statements and audit reports of domestic issuers would refer to the financial statements as having been prepared in accordance IFRS.
The CSA proposals are attached. Comments on the concept paper are due on or before April 13, 2008. PricewaterhouseCoopers will be responding.
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