Журнали

Практика МСФЗ 25 березня, 2019
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«Different countries have different needs and priorities»

Today, we speak with the Chairman of the Canadian Accounting Standards Board (ACSB), Ms. Linda F. Mezon. Linda Mezon, FCPA, FCA, CPA (MI), CGMA, has been chairing the Board since 2013. It was during this period that Canadian accountants intensively mastered IFRS and gained their first experience of reporting under these standards. It should also be noted that the Canadian Board is one of the most active participants in international standardization. Therefore, it seems to us that the story about our Canadian colleagues will be interesting for our readers.

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Ms. Linda F. Mezon, the Chairman of the Canadian Accounting Standards Board (ACSB)

 

How did the transition to IFRS affect Canadian companies? Is everyone satisfied with the results of this transition?

L. M.: Canadian publicly accountable enterprises were required to transition from Canadian GAAP to IFRS® Standards on or before January 1, 2011.

Overall, the transition did impact financial results as most of our country’s publicly accountable enterprises recognized at least one transition adjustment.  

Leading up to transition, the Accounting Standards Board (AcSB) undertook effort to limit differences between Canadian GAAP and IFRS Standards. We did this by issuing some new standards that significantly converged with certain IFRS Standards.

Some Canadian enterprises also looked for opportunities to minimize transition differences by selecting accounting polices that complied with both the existing Canadian GAAP and IFRS Standards.

We also have a robust regulatory environment in Canada that likely helped with the transition to IFRS Standards. For example, each year our provincial securities regulators select a sample of listed companies and review their filings, including their financial statements. The results of these reviews in 2011 were like those in 2010 and 2012. This tells us that the transition to IFRS Standards did not result in more restatements of securities filings when compared to other years.

How does an accountant usually prove his knowledge of IFRS?

L. M.:  In Canada, educational and professional development of Chartered Professional Accountants (CPA) are managed by our provincial CPA bodies. Becoming a Canadian CPA means completing several educational and practical experience requirements to demonstrate knowledge of Canadian GAAP, which includes IFRS Standards.

CPAs also have annual continuing professional development requirements. These requirements include the acquisition of new knowledge and building familiarity with accounting issues relevant to their role.

How much do Canadian ASPE differ from IFRS?

L. M.:  There are many differences between Canadian accounting standards for private enterprises (ASPE) and IFRS Standards. The starting point for ASPE was Canadian GAAP that existed prior to transition to IFRS Standards. As such, ASPE is not developed from IFRS Standards.

Certain parts of ASPE have different measurement guidance, presentation alternatives and disclosure requirements when compared to IFRS Standards. For example, ASPE:

  • has measurement guidance for related party transactions;
  • continues to use risk and rewards criteria for revenue recognition;
  • gives a company an accounting policy choice of consolidating its subsidiaries;
  • does not include many disclosures required by IFRS Standards, including fair value measurement disclosures.

So why do we have ASPE and IFRS Standards as part of Canadian GAAP? Simply put, one size of accounting standards does not necessarily fit all enterprises because the information needs of financial statement users differ when it comes to publicly accountable and private enterprises.  

Private enterprise financial statements users are typically creditors. They have different information needs and the ability to ask questions of an enterprise to obtain additional information.

So when we developed ASPE, the AcSB considered the different needs of those users to avoid requirements:

that would be too burdensome; and

where the costs of generating information exceed the benefits a user would derive from having that information.

Is the IFRS for SMEs Standard required or permitted in Canada?

L. M.:  IFRS Standards for SMEs is not included in Canadian GAAP.  The AcSB develops and maintains GAAP for Canadian private sector entities. Canadian GAAP includes:

  • Part I – IFRS Standards;
  • Part II – Accounting Standards for Private Enterprises;
  • Part III – Accounting Standards for Not-for-Profit Organizations; and
  • Part IV – Accounting Standards for Pension Plans.

Recently, the AcSB announced the results of research on extractive activities.  Any thoughts on why this topic has been on the IASB’s agenda for so many years and has not moved beyond the discussion paper state?

L. M.:  Similar to the AcSB in Canada, the IASB manages its resources and work based on its stakeholders’ needs.

The extractive industry is significant in Canada and therefore a priority for us. But different countries have different needs and priorities. We will be sure to continue sharing Canadian views on extractive activities to support the IASB as it undertakes work on this topic.

№ 3, 2019  (с. 17)
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