Ready or not, here it comes
It's not just an accounting exercise—it's a business issue
Challenges and opportunities lie ahead for the entire company

On February 13, 2008, the Accounting Standards Board confirmed 2011 as the official changeover date for International Financial Reporting Standards (IFRS) in Canada. Though the changeover is three years away, publicly traded companies will be required to disclose their transition plans in 2008 and the anticipated effects of their changeover in 2009. Some Canadian SEC registrants might even consider adoption on January 2009, if permitted, to avoid having to continue reconciliation with US GAAP.

IFRS will be beneficial for a number of reasons but adoption will not be an inconsequential change. The question is, will your organization benefit early from this change or scramble to meet the challenge?

There is inevitable stress and risk of error when a new and complex financial reporting process is put in place under a degree of time pressure. To realize the full benefits of IFRS, organizations need to plan early and ensure IFRS is considered when undertaking other projects or changes related to systems, debt covenants, contracts, forecasts, performance measures and bonus structures between now and the changeover date. As part of this plan, organizations should complete a diagnostic review to identify key GAAP differences, analyze the potential impact of adopting IFRS and identify the resources they will need to convert.

Over 100 countries around the world and 12,000 companies have already made the transition to IFRS. Canadian organizations should seek opportunities to learn from this experience to maximize the probability for success in their conversion.

How PwC can help
Our industry-focused teams are ready to help you solve the accounting, systems and process issues surrounding complex IFRS conversions. Our team includes individuals who have helped previous adopters and who can offer you the full benefit of the lessons learned.

We have a proven track record in helping companies around the world successfully complete the transition to new accounting standards and have quickly built a reputation and solid track record in Canada.

We provide:

• Initial diagnostic of Canadian GAAP/IFRS accounting differences
• Advice on selection of appropriate accounting policies
• Advice on development of an IFRS implementation plan
• Training for all levels of your staff including your board of directors
• IFRS trained and experienced people to supplement your IFRS team
• Project management support to your IFRS team
• Communication strategies and change management
• Assessment of your requirements for data, process, systems and controls
• Advice on process and system solutions to embed IFRS
• Competitor benchmarking
• M&A target accounting conversion assistance
• Valuation advice under IFRS fair value and impairment models
• Tax planning considerations on conversion to IFRS

Our TransitionIFRS Methodology has consistently delivered successful results to public companies around the world. TransitionIFRS acts as a springboard from which you can launch and control your conversion project, accessing the support and guidance you need as the implementation progresses. This methodology has been specifically tailored to the Canadian market, Canadian GAAP, and the issues that companies in your industry sector are facing.

Contact us today to find out how a PwC professional can help you get started on your IFRS implementation process.