International Financial Reporting Standards (IFRS) and Accounting Standards for Private Enterprises (ASPE)

For annual periods commencing on or after January 1, 2011, all publicly accountable enterprises in Canada are required to adopt the IFRS as a framework for financial statement preparation. The move from Generally Accepted Accounting Principles (GAAP) to IFRS is aimed at ensuring more transparent and comparable financial reporting worldwide. IFRS will soon become the new “Canadian GAAP” for publicly accountable enterprises.

Private companies in Canada will also be required to make a transition, either to IFRS or to ASPE. The conversion to ASPE is not as extensive or intricate as that to IFRS, yet it does require a different approach in financial reporting.

There are many factors that a private enterprise should consider before making a final decision as to which set of standards is most suitable. Our team is well-equipped to work through the process with our clients. As every business is different, we consider the requirements of each client in developing a tailor-made plan. Nexia Friedman is well-positioned to advise you regarding the ins-and-outs with respect to both sets of standards and to provide you the initial awareness training.

No matter which regime your enterprise ultimately chooses, the professionals at Nexia Friedman can assist and advise you on how to make the conversion a seamless one.