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Canada will not early adopt IFRS

Tuesday 1 November 2011 - by Nicola York

Canadian financial institutions will not be adopting new or amended International Financial Reporting Standards early but will instead stick to the mandatory effective deadlines.

In a letter to all federally regulated institutions on Monday, the Office of the Superintendent of Financial Institutions Canada said it had assessed various accounting standards and decided that given the "considerable work effort" in transitioning to IFRS, early adoption is not viable.

Referring to IFRS 10 on consolidated financial statements, IFRS 11 on joint arrangements, IFRS 12 on disclosure of interests in other entities and IFRS 13 on fair value measurements among others, OSFI said its assessments in reaching this conclusion took into account factors such as industry consistency, operation capacity and resource constraints of financial institutions and the notion of a level playing field with international financial institutions.

The letter reads: "OSFI has concluded that FREs should not early adopt the new or amended IFRSs outlined in this letter.

"As a result, FREs should adhere to the mandatory effective dates as stated in each of the respective IFRSs.


"Given the considerable work effort in transitioning to IFRS and amount of recently issued IFRSs with a similar effective date, OSFI believes that this position provides a reasonable timeframe for FREs to adequately plan, analyse and implement these accounting standards within their organisation."

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