Strategic Planning – Publicly Accountable Enterprises
The planning and consultation process the Accounting Standards Board (AcSB) followed to develop its strategic direction for publicly accountable enterprises is summarized below.
For current activities, visit the International Financial Reporting Standards (IFRSs) area of the website.
2013 Canada contributes to the progress towards global adoption of IFRSs
2011 IFRSs become effective in Canada
- Publicly accountable enterprises, other than pension plans, are required to adopt IFRSs as Canadian GAAP for interim and annual financial statements related to fiscal years beginning on or after January 1, 2011.
- Qualifying entities with rate-regulated activities and investment companies and segregated accounts of life insurance enterprises can defer their changeover to fiscal years beginning on or after January 1, 2014.
2010 IFRSs incorporated into Canadian GAAP
- In January, IFRSs are issued as Part I of the CICA Handbook – Accounting.
2008-09 Expose IFRSs
- To comply with its due process, the AcSB issues three omnibus exposure drafts on “Adopting IFRSs in Canada” to expose for public comment the adoption of each IFRS.
- In December, the AcSB concludes that, in light of the comments received on all three exposure drafts, it should proceed to incorporate the IFRSs exposed into Canadian GAAP as planned.
2008 Affirm changeover date to IFRSs
- In February, the AcSB considers input from stakeholders and the Accounting Standards Oversight Council (AcSOC) on the progress review.
- On February 13, the AcSB announces via a media release that the changeover to IFRSs for publicly accountable profit-oriented enterprises is for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011.
- In November, the Accounting Standards Oversight Council issues a statement supporting the AcSB’s Global Approach to Financial Reporting Standards.
2007 Issue implementation plan
- In March, the AcSB issues the “Implementation Plan for Incorporating International Financial Reporting Standards into Canadian GAAP.”
- The AcSB conducts a review to assess the progress made in Canada in establishing the infrastructure for the IFRS implementation, any significant difficulties encountered by others in the initial adoption or ongoing application of IFRSs, and the ability of the International Accounting Standards Board to continue to develop high-quality standards.
- A preliminary report is issued in October.
2006 Approve new strategic plan
- The AcSB approves the new strategic plan to govern its activities in the next few years.
- In the Strategic Plan, “Accounting Standards in Canada: New Directions,” the AcSB notes that “one size does not fit all” and decides to pursue separate financial reporting strategies for publicly accountable enterprises, private enterprises and not-for-profit organizations.
- As part of the strategy, the AcSB proposes the adoption of globally accepted, high-quality standards by replacing Canadian GAAP with IFRSs for publicly accountable enterprises.
2005 Consult on tentative conclusions
- After considering the input received, the AcSB presents its tentative conclusions to AcSOC at its February public meeting.
- The AcSB’s tentative conclusion is that separate strategies for each of the distinct categories of reporting entity should be developed (i.e., publicly accountable enterprises, private enterprises and not-for-profit organizations).
- In March, the AcSB issues an Invitation to Comment on its Draft Strategic Plan after considering the advice received from the AcSOC. The AcSB proposes that Canadian GAAP for publicly accountable enterprises should converge with IFRSs over a transitional period expected to last five years.
- In May, the AcSB commences discussion of matters that would arise as a result of adopting the strategies proposed in its Draft Strategic Plan, including whether the changeover to IFRSs should be accomplished in a single step or through multiple successive accounting changes.
- In September, the AcSB begins its review of the comments received in response to the Draft Strategic Plan. Overall, the responses are supportive of the strategies that had been proposed, although they set out some concerns about how they would be implemented and timing.
- At its October public meeting, AcSOC reviews the comments and concurs with the AcSB’s tentative conclusion that it had a basis for proceeding to finalize a plan.
2004 Begin consultations on future direction of accounting standards
- The AcSB embarks on a process to develop a new five-year plan for the period 2006-2011 to reconsider its previous strategies of harmonizing with U.S. GAAP while working to support the international convergence of accounting standards.
- In May, the AcSB seeks public input through its Invitation to Comment, “Accounting Standards in Canada: Future Directions,” and a series of public roundtable meetings and other consultations with stakeholders.
- The Invitation to Comment asked whether Canada should:
- maintain its own standard-setting capability;
- maintain its own GAAP or adopt either U.S. GAAP or IFRSs;
- continue with the twin objectives of harmonization and convergence; and
- consider modifying current Canadian GAAP requirements to provide better information to the users of financial statements of various different types of entities through, for example, a wider application of differential reporting.
- A wide range of interested parties provide considerable feedback to the AcSB with Invitation to Comment responses.
Resources – Strategic Direction for Publicly Accountable Enterprises
- “Accounting Standards in Canada: New Directions” (January 4, 2006)
- Extracts from AcSB Decision Summaries concerning planning discussions (updated following AcSB meetings)
- Invitation to Comment, “Accounting Standards in Canada: Future Directions — Draft Strategic Plan” (March 31, 2005)
- “Comparison of Canadian GAAP and IFRSs” (April 28, 2005)
- “Implications of Moving to IFRSs for Existing Canada/US GAAP Differences” (May 19, 2005)
- Invitation to Comment, “Accounting Standards in Canada: Future Directions” (May 31, 2004)
- Discussion Paper, with links to background information (June 24, 2004)
- Summary of comments received from roundtable meetings (October 28, 2004)
- Accounting Standards Board Plan 2003-2005 (August 2003)
- CAmagazine: “News from the profession — The future direction of accounting standards” (May 2005)
- CGA Magazine: “Canadian Accounting Standards — A Conversation with Paul Cherry” (March/April 2005)
- CAmagazine: “Standardizing the standards — How do Canada’s accounting standards compare to International Financial Reporting Standards?” (April 2005)
- Statement by SEC staff: "A Securities Regulator Looks at Convergence” (April 2005)
- No. 9, "The Lawyer, the Banker, the Investor and International Financial Reporting Standards" (October 2009)
- No. 8, “Only Months To Go — IFRSs (Not the New Year)” (August 2009)
- No. 7, “IFRSs: Guide for Procrastinators” (July 2009)
- No. 6, “IFRSs in Canada: Cleared for Take-off” (March 2008)
- No. 5, “Adopting IFRSs: Next Steps – Ours and Yours” (September 7, 2007)
- No. 4, “Canada’s Move to International Financial Reporting Standards: Frequently Asked Questions” (January 19, 2007)
- No. 3, “Public Companies and the Move to International Accounting: Getting There From Here” (September 1, 2006)
- No. 2, “Private Company Strategies: New Directions” (August 16, 2006)
- No. 1, “Global Positioning: the New Direction” (April 24, 2006)
- EIC Abstracts Review — IFRS Adoption (May 2008)
- Final Report on the Progress Review — Steps to IFRS Incorporation into Canadian GAAP (February 5, 2008)
- Preliminary Report on the Progress Review ― Steps to IFRS Incorporation into Canadian GAAP (November 12, 2007)
- Executive Summary of Preliminary Report on the Progress Review ― Steps to IFRS Incorporation into Canadian GAAP (October 26, 2007)
- “Progress Review ― Steps to IFRS Incorporation into Canadian GAAP”(July 31,2007)
Comparisons of Canadian GAAP to Other Standards
- Summary Comparison of Canadian GAAP (Part V) and IFRSs (Part I)
- Summary Comparison of Canadian GAAP Accounting Standards for Private Enterprises (Part II) and IFRSs (Part I)
Background Information and Basis for Conclusions
- “Adoption of International Financial Accounting Standards” (June 2011)
Need more information? Contact the AcSB.