International Financial Reporting Standards

Following extensive consultation with stakeholders, the Accounting Standards Board (AcSB) is adopting International Financial Reporting Standards (IFRS) as Canadian GAAP for publicly accountable enterprises (PAEs). The Public Sector Accounting Board (PSAB) is requiring government business enterprises (GBEs) to adopt IFRSs. In both cases, adoption is required for fiscal years beginning on or after January 1, 2011.

Private enterprises have the option of adopting IFRSs or the new Canadian standards developed specifically to meet the needs of users of their financial statements. Not-for-profit organizations may also choose to adopt IFRSs.

IFRSs, issued by the International Accounting Standards Board (IASB), are high quality, global accounting standards that require transparent and comparable information in financial statements and other financial reporting.

Canada comprises less than four percent of world capital markets; therefore, IFRSs provide more opportunities for publicly accountable enterprises in Canada by eliminating the need for multiple GAAP reconciliations, increasing access to international capital markets, and potentially reducing the cost of capital.