Accounting Standards: New Directions

The Current Situation in Canada

Accounting Standards Oversight Council Accounting Standards Oversight Council Board Implementation Guidance Groups Emerging IssuesXXX Advisory Councils Sector-specific Groups

Now Private Companies (“Differential Reporting”) Public Companies # of Entities GAAP Requirements

Access to Accounting Resources

New Strategic Directions

New Strategy Public companies – Cdn GAAP = International standards – lengthy transition period ( 5 years, possibly longer) Private companies – Comprehensive re-examination of financial reporting model based on user needs

Timeline : public companies Detailed AcSB work plan June 06 Checkpoint review Apr-Sept 08 Changeover to IFRS April 2011???

Private Companies Research underway on users & user needs – Internal vs external users – “significant” external users – “exempt” entities First phase to be completed Sept 06 International developments – AICPA/FASB – IASB SME project

One scenario No external users (“Exempt”) “Core” Public Companies ? GAAP Requirements # of Entities

Another Scenario Private Companies (“Differential Reporting”) + SMEs Public Companies + large NPAEs Capitalization of Entities GAAP Requirements

Communications Ongoing communication is critical – Detailed implementation plans to be published on the website – Communications program targeting key messages and key stakeholder groups – Research program will involve contacts with many in the private business sector

Responding to Standards Overload AcSB is slowing pace of change Delayed effective dates – Financial instruments More implementation guidance? More co-ordination among standard setters, regulators and others

QUESTIONS??