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 the transition.
“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 said.
“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 April.
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.