Cost

THE COST OF IFRS TRANSITION IN CANADA

THE COST OF IFRS TRANSITION IN CANADA

ACKNOWLEDGEMENTS

We gratefully acknowledge the efforts of our survey respondents and our roundtable participants who took valuable time away from their day jobs to participate in this work. We are particularly grateful to our research sponsors, Canada’s Accounting Standards Oversight Council and the IFRS Foundation, without whom this study would not have been possible.

Christian Bellavance Vice President, Research and Communications Financial Executives International Canada

© Copyright 2013 by Canadian Financial Executives Research Foundation (CFERF). No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher. This report is designed to provide accurate information on the general subject matter covered. This publication is provided with the understanding that the author and publisher shall have no liability for any errors, inaccuracies, or omissions in this publication and, by this publication, the author and publisher are not engaged in rendering consulting advice or other professional service to the recipient with regard to any specific matter. In the event that consulting or other expert assistance is required with regard to any specific matter, the services of qualified professionals should be sought. First published in July, 2013 by CFERF. 1201-170 University Ave. Toronto, ON M5H 3B3 ISBN# 978-1-927568-09-5

CONTENTS

Executive summary / 2 Introduction / 7 Methodology and demographics / 8 Transition / 10 Budget / 10 Types of costs / 12 Key cost drivers / 16 Recurring costs / 20 Preparing IFRS annual financial statements / 20 Interim financial reporting / 21 Impact on systems and IT / 21 Time / 22 Lead time / 22 Time spent on transition activities / 26 Conclusion / 28 Appendix A: Budget / 31 Overall...