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Ifrs Broker Dealer Presentation

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Get up to date on International Financial Reporting Standards

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Ifrs Broker Dealer Presentation

  1. 1. April 15, 2009 IFRS and Independent Broker Dealers Prepared by: John Chick, C.A.
  2. 2. Outline Background Implications to Broker Dealers Scope of Changes Key Success Factors Key Considerations What Mathews Michaels Provides
  3. 3. Background  Canadian GAAP is moving to IFRS (International Financial Reporting Standards)  Effective date of transition will be 1/Jan/2011 (i.e. standards in place at that date)  Applies to all Publicly Accountable Enterprises (i.e. public companies plus certain private companies and public entities which are subject to regulation or public scrutiny)  Optional for private profit-oriented enterprises (who may want to adopt to maintain a comparable, competitive market position)  SEC will accept financial statements prepared in accordance with IFRS  U.S. is planning to transition FASB to IFRS  IFRS is a concepts-based vs. rules-based set of accounting principles
  4. 4. Implications for Investment Dealers  Likely will need to adopt IFRS for fiscal years starting on or after 1/Jan/2011 (e.g. 31/Dec/2011 year ends)  Applies to first interim financial statements (e.g. 31/Mar/2011)  Must provide full comparative financial information prepared under same basis of accounting (e.g. 2010, which must also be reported under existing Canadian GAAP)  Must explain significant upcoming changes in accounting principles (i.e. note disclosure will be required starting at least in 2009)  Likely have clients who will need to adopt IFRS  May need to provide more than one type of client accounting & reporting to meet differing client needs
  5. 5. Scope of Changes  This is not just an accounting exercise  There are likely to be implications to other areas for example:  Systems – new data requirements  Human Resources – employee long term incentive plans  Finance – debt covenant and taxation planning  Controllership – financial reporting and budget process  Operations – policies and procedures  Investor Relations– KPI’s and dividend policy
  6. 6. Key Success Factors  Support at senior levels of organization  Structured and effective project planning  Appropriate education and training  Sufficient key resources  Complete and detailed analysis  Avoid mistake of simplistic conclusions  Many key differences are buried in the details of both Canadian GAAP and IFRS  Need to identify and understand differences before quantifying implications and making decisions regarding choice of accounting principle  Timely implementation  Regular, focused and effective communication
  7. 7. Key Concerns  “The Devil is in the Details”  This change will not be suitable for a “One Size Fits All” process  IFRS 1 provides a number of exemptions and limits certain choices for first- time adopters of IFRS  Crucial to understand the implications of these before making final decisions regarding choice of accounting principles provided under remainder of IFRS  Should ensure choice of accounting principles provides proper balance between cost/benefit of effort and best practices
  8. 8. What Mathews Michaels Provides  Assess the Canadian GAAP to IFRS impact for your organization  Provide a detailed project plan and identify the resource requirements to successfully get you to end of job  Establish the Change Management processes to oversee the project and communication with all stakeholders  Work with you on key accounting policies areas and provide opinion on industry approach  Execute project using our measurable project criteria that we will evaluate on an ongoing basis  Provide an in house IFRS manual for your organization  If you’re not already working on it, the time to start is NOW
  9. 9. For more information on offerings and marketing materials feel free to access our website www.mathewsmichales.com Thank You
  10. 10. For more information on offerings and marketing materials feel free to access our website www.mathewsmichales.com Thank You

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