Nearly half of Canadian public companies are
struggling to convert to IFRS before the January 2011 deadline, new
research has found.
With just seven months remaining, 47% of
companies are less than 60% through IFRS conversion and nearly 30%
of companies with revenues of less than C$49 million ($45.5
million) said they did not have the resources required to complete
“Overall, the survey results show that while
considerable progress has been made in working towards January 2011
implementation, there is still work to be done with seven months
remaining,” PwC Canada national IFRS leader Diane Kazarian
“IFRS can have significant implications on IT
systems, processes within the finance department, and many other
areas, such as training, communications and the business.”
PricewaterhouseCoopers sponsored the survey,
which was carried out by the Canadian Financial Executives Research
Foundation and Financial Executives International Canada. It
canvassed 146 senior financial executives during March and
The survey found that public companies had
made much greater progress than private companies.
Finance professionals believe the transition
to IFRS will have an impact on company figures. Twenty-eight
percent of Canadian companies anticipate a decrease in reported net
income, 22% expect earnings per share to fall and 28% predict an
increase in pension liabilities in the first year of adoption.
Upon adoption, 61% of finance executives
expect their preliminary IFRS opening balance sheet to be complete
by the end of the second quarter of the 2010 fiscal year.