Focus on IFRS

Stopgap
measures
lawed in
long run
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WITH THE ADOPTION date of international financial reporting
standards just months away, it can feel like a sprint to the finish
line. In fact Jan. 1, 2011 is a starting point—square one for the
new accounting standards that will be used by Canada’s public
companies going forward. Are you prepared for a clean break?
Like learning a new language, full immersion is the best
way to become comfortable using the new standards. Fully in-
tegrating IFRS into the organization means developing new
processes to collect, verify and report financial information.
Layering new processes on top of old ones that were designed
for different requirements is inefficient and can pose risks for
the organization.
In addition to duplication of effort and increased costs,
there is a threat of disclosing incorrect information. Patch-
work processes and modifications to meet IFRS requirements
could make it more difficult to remain
compliant with the Canadian Securities
Administrators’ National Instrument
52-109, under which CEOs and CFOs
provide certification on their company’s
financial statements; MD&A; disclosure
controls and procedures; and internal
control over financial reporting.
By nature, quarterly and annual re-
porting periods are stressful for the fi-
nance team. Coping with additional processes during these
already peak periods will lead to frustration and perhaps even
staff burn-out.