Focus on IFRS

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HE TRANSITION by Canadian pub-
lic companies to convert to interna-
tional financial reporting standards is
a tricky enough issue for accountants
to comprehend so one can imagine
the steepness of the learning curve
for their boards of directors.
Board members of companies on
the Toronto Stock Exchange and
the TSX Venture Exchange come
from a wide variety of backgrounds,
including lawyers, former politi-
cians, academics, business people,
consultants and leaders of non-prof-
it organizations. And while they’re
valued for their breadth and depth
of experience, they aren’t necessar-
ily well-versed in the fine art of ac-
counting standards.
Many directors have been boning
up on the topic for the past year or
two and those who haven’t will soon
be getting a baptism by fire. Interna-
tional financial reporting standards
will be officially implemented north
of the 49th parallel for Canadian
companies whose fiscal years be-
gin Jan. 1, 2011 or later. The move,
which was announced four years
ago, will bring Canadian account-
ing methods in line with those of
more than 100 countries, including
the European Union, South Africa,
Australia and New Zealand. This list
does not include the U.S.