KPMG Enterprise™

Business Adviser
April 2009

Issues in Private Company Reporting

By Beth Wilson
Partner
National Leader – KPMG Enterprise™
Canadian Managing Partner, Regions
KPMG LLP

With the Accounting Standards Board’s release of its Exposure Draft on an accounting framework for private companies, private company owners and managers will turn their attention to the new standards and look to understand what this will mean for their organizations. True, the rules are also changing for public companies as they transition to IFRS by 2011; however, for Canada’s private companies a different dilemma is to be managed—whether to transition to IFRS or to the proposed standards for private business. This choice will impact your business.

This edition of Business Adviser seeks to provide private company owners and managers with helpful insight in order to understand and reflect upon the challenges associated with the choice between IFRS and private company accounting standards (GAAP), so you can be better prepared to determine which approach makes more sense strategically for your private company.

We believe there is no greater opportunity for learning than to understand the perspectives of one’s peers; we are pleased to release the results of a joint research study with the Financial Executives Institute (FEI) on this subject. FEI Canada is an all-industry professional association for senior financial executives and, interestingly, the majority of their membership in 11 chapters across the country emanates from private companies.

As part of our commitment to Canadian private companies, KPMG Enterprise is committed to remaining at the leading edge of financial reporting standards. We led research efforts to garner input from various stakeholders and provided recommendations for consideration of the AcSB. Bob Young, Partner of our National Assurance and Professional Practice, served on the advisory committee appointed by the AcSB to review contentious issues, such as accounting for income taxes and employee future benefits, in order to develop approaches that were appropriate for private companies, based on cost/benefit considerations.

For those who may not have kept abreast of the developments over the past year, refer to our resource microsite entitled Financial Reporting Standards for Private Companies in Canada. There you will find updates published during the past year that will provide much of the background you need to understand the issues and the choices in front of you. You might also wish to visit www.kpmg.ca/ifrs for additional resources and guidebooks on IFRS.

Whether your decision is to transition to IFRS or to adopt the new private company GAAP, KPMG Enterprise is ready to help you navigate through the complex standards, ensuring a smooth transition. 

We invite you to contact your KPMG Enterprise adviser if you have questions or wish to strategize, which approach makes more business sense in the immediate and longer term, and discuss how evolving accounting standards will affect your private company today and in the future.

Is IFRS my Future?

By Elda Fares, Partner, National Audit Leader,
Private Equity Group, KPMG LLP

Canadian generally accepted accounting principles (“GAAP”) as we know them today will cease to exist in 2011. At that time, public companies will transition to International Financial Reporting Standards (“IFRS”) as their reporting framework. What are the options, if any, for Canada’s private businesses? More. . .

Issues in Private Company Reporting – CFERF Executive Research Report

By Ramona Dzinkowski, Executive Director - Canadian Financial Executives Research Foundation (CFERF) Financial Executives International Canada

The Canadian Accounting Standards Board (AcSB) is finalizing the development of a “made in Canada” private company GAAP option for companies that choose not to adopt IFRS; the model will simplify recognition and/or measurement treatments in a variety of areas. The new standards are expected to be available for early application for fiscal years ending Dec. 31, 2009. They will incorporate changes in accounting for financial instruments and certain types of pension plans, and maintain or enhance existing reporting options for goodwill and other intangible assets, income taxes, subsidiaries, joint ventures, and other investments. The remaining recognition and measurement standards will follow the existing CICA Handbook with few, if any, modifications. More. . .

Click here to download a complimentary copy of the CFERF Executive Research Report. 

Managing the Transition to IFRS: Clearing the path for Canadian Private Companies was developed to assist Canadian private companies that are planning to adopt IFRS. Canada's move to IFRS is gaining momentum. The standard setters are removing obstacles and resolving uncertainties. Leaders of private companies should be keeping up to date and moving forward on their transition. They need to understand how Canadian GAAP will change into IFRS and what their private companies should be doing to reach the end goal of "IFRS—business as usual."

Click here to download a complimentary copy of this publication.

Managing the Transition to IFRS: Helping Canadian Private Companies to Move Forward is intended for private company owners, managers, and finance and accounting professionals who are managing IFRS conversions in their organizations. Topics in this edition include recent IFRS developments and how they may impact conversion projects, the impact on tax reporting, and the importance of project management during implementation.

Click here to download a complimentary copy of this publication.

Listen to KPMG's Webcast Replay: How Will the New Income Tax Accounting Standard Affect Your IFRS Conversion Plan?

On April 23, 2009, KPMG presented a webcast analysis of the much-anticipated changes to the International Financial Reporting Standard (IFRS) on accounting for income taxes that were proposed in an exposure draft released on March 31, 2009. While the new standard eliminates some differences between IFRS and Canadian generally accepted accounting principles (GAAP), several important differences remain. Canadian companies that have been delaying their IFRS conversion plans in anticipation of the revised standard now have the information they need to address income tax accounting issues in their IFRS conversion plans.

Presenters included Greg Wiebe, Canadian Managing Partner, Tax; Pam Zabarylo, National Leader of KPMG’s Income Tax Accounting practice (Toronto); Jodi Roworth (Calgary); Michael Brawn (Vancouver); and Marilyn Stitt, National Leader, IFRS Initiatives (Toronto).

If you were unable to join the webcast, an archived version is now available for access at any time. To access the webcast replay and a copy of the presentation, click here.


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Business Adviser is published bi-monthly by KPMG Enterprise™ specifically for owners and executives of private companies in Canada. KPMG Enterprise is devoted exclusively to serving the needs of private companies in Canada. For further information about how KPMG Enterprise can help private companies, visit our website.

   
Business Adviser

Business Adviser is published bi-monthly by KPMG Enterprise™ specifically for owners and executives of private companies in Canada. KPMG Enterprise is devoted exclusively to serving the needs of private companies in Canada. For further information about how KPMG Enterprise can help private companies, visit our site.










































































































































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