Detailed Evaluation
The second phase of the IFRS conversion process is the detailed evaluation and includes the following steps:
- Review detailed financial information.
- Highlight and quantify differences between IFRS and Canadian GAAP.
- Advise on the selection of appropriate accounting policies. IFRS provides flexibility in certain areas; MNP works with you to determine which policies will best suit your reporting needs.
- Assess the impact on opening balances under IFRS.
- Assist with pro-forma financial statements and disclosure requirements.
- Provide advice on assessing fair value and impairment tests under IFRS models.
- Assist in mapping the conversion process and creating an audit trail of the changeover.
- Communicate conversion issues and resolution with the audit committee and auditors.
- Advise on optional exceptions available under IFRS 1.
- Assist with interpretation of accounting policies where significant judgment is required.
- Provide tailored CPD accredited IFRS training.
- Determine additional information requirements necessary for compliance with IFRS-based corporate reporting.
- Consider the impact of IFRS on future budgeting/forecasting, including the effect on covenants, bonus calculations, etc.
- Develop an implementation plan addressing accounting and reporting processes, including the IT function.
- Assist with the design of integrated conversion – comprehensive changes to processes, policies and procedures that will incorporate IFRS into the daily operations of your organization.
- Develop a conversion report.
To find out how MNP can help you make the transition to IFRS, please contact your local MNP advisor or call Jason Kingshott, CA, at 1.877.500.0792.