International Financial Reporting Standards (IFRS)
There is currently global convergence towards a single set of high quality accounting standards for use throughout the world. Accordingly, the Canadian Accounting Standards Board (AcSB) has adopted the mandatory use of International Financial Reporting Standards (IFRS) by all publicly accountable enterprises (PAEs). IFRS replaces previous Canadian generally accepted accounting principles as the acceptable set of accounting standards for PAEs.
While the Canada Revenue Agency does not specify that financial statements must be prepared following any particular type of accounting principles or standards, the AcSB requires PAEs to use IFRS in the preparation of all interim and annual financial statements.
Most private companies also have the option to adopt IFRS for financial statement preparation.
- Current Income Tax Technical News (ITTN) See Issues 41, 42 and 44.
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