Focus on IFRS

Kelly Gorman,
the manager
of corporate
finance at the
OSC, says it’s
time to clearly
communicate
with investors
about IFRS.
were not anticipated.
While turning to outside consultants for help
with the conversion is an option for companies
that have limited internal resources, Beal cautions
that experts who can help with the process will be
fewer and farther between, and more costly as the
deadline approaches.
He also advised companies to put in place a plan
that builds a sustainable process so those inside the
company can take over once the external expert
has completed the initial work.
Cineplex’s Campbell said companies will likely
run into problems, no matter how early they start
the conversion process.
Even though the theatre chain started well ahead
of time, Cineplex had issues in January of this year
when it began testing the system and found there
were problems with the way its software system
did calculations under Canadian GAAP and IFRS.
The problem was due to the structure of the data
the company had in its system and the way the
software handled it.
The accounting records were structured for Ca-
nadian GAAP and the software had to cope with
the added complexity of IFRS, more specifically
how the new system deals with the intricacies of
fixed assets and tangible property, Campbell said,
so it caused some problems.