Unleashing the potential of IFRS
How IFRS will impact the way companies measure performance
The adoption of International Financial Reporting Standards (IFRS) presents both opportunities and obstacles for Canada’s publicly accountable entities — organizations that are required to adopt IFRS beginning on or after January 1, 2011. While IFRS is replacing Canadian GAAP, it will continue to serve the same objectives: to provide timely and accurate financial reporting information to both internal and external stakeholders.
Many companies are currently focusing on issues of design and implementation. But not all companies are actively identifying the inherent opportunities of IFRS to help them and their investors measure economic performance. The danger is that, as companies move through implementation, external stakeholders may be better able to translate IFRS-based financial reporting into meaningful information on their financial performance. To unleash the potential of IFRS, organizations need to better understand how the new standards correlate to the ways that they measure value and value creation.
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