In moving to IFRS, everyone involved in financial reporting for these enterprises will encounter a real learning curve.
Like Canadian GAAP, the standards in IFRS are generally principles-based. IFRS provides entities with more accounting policy choices, and applying them will require greater use of professional judgment than Canadian GAAP. In some cases, IFRS will lead to the same or similar conclusions as Canadian GAAP.
In other areas, however, these standards differ substantially from the equivalent Canadian GAAP, and their effect could be significant. Further, both IFRS and Canadian GAAP include standards with no equivalents in the other set of standards.
Enterprises should therefore take time to identify how adopting IFRS will likely affect their financial reporting, and implement plans for effectively making the change. Public issuers are expected to disclose, in their 2010 interim and annual MD&A, available quantified information on the impact of IFRS on key line items in their financial statements.
Of course, like all accounting standards, IFRS continues to evolve. Understanding and keeping up with ongoing revisions and amendments is an important responsibility of all enterprises using IFRS.
KPMG assists clients in understanding IFRS and applying accounting standards to their specific circumstances.
KPMG also produces numerous publications dealing with developments in IFRS and financial reporting and the implications for Canadian enterprises. Some publications focus on particular aspects of IFRS, while others consider specific industry sectors.