The transition to International Financial Reporting Standards (IFRS) from the current Canadian Generally Accepted Accounting Principles (GAAP) in 2011 may be one of the most complex accounting and reporting challenges faced by Canadian companies in recent history. Through our global experience helping companies adopt IFRS, we know that full conversion may take anywhere from two to five years, depending on a number of factors including the complexity of the industry, organizational structure and supporting systems, as well as the extent of local GAAP versus IFRS differences.
For some industries (such as banking, insurance, forestry and oil and gas), conversion may be even longer and more complex because significant industry-specific accounting policy changes are required. It is often difficult to extract the historical information and modify the accounting processes and systems associated with these changes.
For many organizations, adopting IFRS goes beyond a simple technical exercise for their accounting functions. Other business areas, such as human resources, IT management, investor relations and business development will likely be involved in the conversion. IFRS also places tremendous pressure on management to communicate effectively to a global marketplace in this new accounting language.
How PwC can help
Which industries will have the greatest challenge ahead? We have identified several below and will be adding new industries as more information is released on the evolving standards. Read more about industry-specific differences between IFRS and Canadian GAAP and other key conversion issues.
PricewaterhouseCoopers’ IFRS professionals have the industry-specific knowledge and the track record to create solutions tailored to your company’s unique conversion requirements. Our people have already helped numerous companies in Europe and other parts of the world with their IFRS implementation.
Contact one of our professionals today to find out how we can clarify your IFRS conversion.
