With the transition to International Financial Reporting Standards in Canada, accountants, financial analysts and advisors, corporate finance professionals, institutional and individual investors and other financial statement users will need to re-educate themselves in understanding and interpreting financial statements issued by public companies.
Under IFRS traditional performance measures such as key financial ratios or income measures have the potential to change simply due to changes in accounting figures. In the UK for example, when their transition to IFRS occurred, some companies went from a profit to a loss position and vice versa, simply due to changes in accounting rules, rather than performance.
IFRS Literacy: Understanding the New Financial Statements provides a description and explanation of how financial statements will change under IFRS, along with valuable expert analysis and insight into true financial statement literacy in the post-IFRS transition market. The content of this work focuses on practical application and analysis of IFRS-based statements, drawing upon actual examples from both the Canadian and international financial markets. In its electronic subscription format, this content is updatable and fully searchable.
Each chapter includes highlighted comments on the impact of IFRS on particular financial statement items. This commentary feature highlights key differences of financial statements prepared under IFRS from those issued under previous Canadian GAAP, noting common changes in accounting policies, amounts, disclosures and presentation. Extracts from published financial statements illustrate these differences.
IFRS Literacy: Understanding the New Financial Statements provides a unique Canadian perspective for Canadian readers, and is designed to appeal to a broad cross-section of financial statement users, including accountants, financial analysts and advisors, corporate finance professionals, and institutional and individual investors.
Topical coverage includes:
About the Author
John Hughes, CA, is an accounting and financial reporting consultant, and Director of Accounting Standards at MSCM LLP. John was Manager, Corporate Finance for over six years at the Ontario Securities Commission, with particular involvement in the OSC's continuous disclosure review program and related policy matters. Apart from IFRS, his areas of emphasis and expertise include MD&A, corporate governance, disclosure controls and procedures, executive compensation, and regulatory compliance generally. He is a frequent presenter, panelist and writer on these topics and others (including regular commentary at mscm.ca) and was co-editor (for Deloitte Canada) of the CCH publication iGAAP: IFRS for Canada.Table of ContentsIntroductionFinancial Reporting: What financial statements are, what they mean, and where they come from?
1. The Basics2. Materiality3. Other Terms and Concepts4. Ratio Analysis5. Management Discussion and Analysis (MD&A)6. International Financial Reporting Standards
Financial Statements: First steps to financial literacy
7. Balance Sheet 8. Income Statement9. Comprehensive Income10. Statement of Cash Flows11. Equity12. Interim Financial Statements13. Accounting Policies and Changes14. Consolidated Financial Statements
Key Disclosures: Second steps to financial statement analysis
15. Goodwill and Business Combinations16. Revenue17. Inventory18. Long-lived Assets19. Intangible Assets20. Impairment of Assets21. Provisions and Contingent Liabilities22. Earnings per Share23. Segment Information24. Non-GAAP Financial Measures
Specialized Disclosures: Digging deeper into financial statement analysis
25. Income Taxes26. Financial Instruments27. Foreign Currency28. Leases29. Investments in Associates30. Interests in Joint Ventures31. Assets Held for Sale and Discontinued Operations32. Employee Benefits33. Government Assistance34. Related Party Transactions35. Share-based Payments36. Biological Assets37. Exploration Costs
IFRS Transition: Adopting IFRS for the first time
38. Adopting IFRS for the First Time