Canadian Reflection of the U.S. GAAP versus IFRS Dilemma

• In Event: Managerial Issues and International Standards

Abstract

The Accounting Standards Board of the Canadian Institute of Chartered Accountants required all
publicly accountable enterprises in Canada to report in accordance with International Financial Reporting Standards (IFRS) for fiscal years beginning on or after January 1, 2011. The Securities and Exchange Commission (SEC) registrants, however, are still allowed to file financial statements with Canadian securities regulators that are prepared in accordance with US Generally Accepted Accounting Principles (US GAAP). The primary objective of this study is to classify and analyzed the 2011 annual reports filed with the SEC by Canadian companies cross-listed on the New York Stock Exchange. The findings indicate that majority of Canadian companies: (1) filed their annual report on Form 40-F; and (2) provided an explicit and unreserved statement of compliance with IFRS, as issued by the International Accounting Standards Board. But there were also companies making different form and standard choices. This study highlights their decisions and explores their rationale.

Author

• Sylwia Gornik-Tomaszewski, St. John's University