Accountants optimistic about IFRS-readiness, but companies still in early stages of preparation

Many accountants believe their companies will be ready for the changeover to International Financial Reporting Standards (IFRS) in 2011, although most of these companies remain in an early stage of preparedness, according to a recent survey of Canadian chartered accountants in senior executive roles.
About 425 senior executives were surveyed in November 2008 as part of the Canadian Institute of Chartered Accountants’ CICA/RBC Business Monitor study in 2008 Q4.
Just over half of the CICA’s survey respondents indicated their company would need to adhere to IFRS. About 80% of those respondents indicated it is very likely their company will be ready for IFRS.
“While it is encouraging to see optimism in terms of being ready, companies should not underestimate the work involved in transitioning to IFRS,” said Ron Salole, vice-president of standards at CICA. “The earlier that enterprises begin preparing, the more seamless the transition. The clock is ticking and the time to start actively preparing for the changeover is overdue.”
Of the Canadian companies transitioning to the new international financial reporting standards, 44% are in the process of assessing the potential impact on their organization, the CICA notes. That is up from about 30% from a similar survey conducted earlier this year.
In addition, 12% have begun educating staff on the changes involved, and 5% have completed the education process.
Only 4% of the companies reported that they have appointed a transition leader/team.
The CICA has an IFRS-focused website (www.cica.ca/IFRS) to help members and businesses navigate the transition process.