The changeover to International Financial Reporting Standards (“IFRS”) in Canada begins on January 1, 2011. With the deadline for the IFRS changeover fast approaching it is becoming clear that investor relations professionals will have to help educate investors about the differences between accounting standards and the impact that the changeover will have.
According to the results of a recent members survey conducted by the Canadian Investor Relations Institute (“CIRI”), “a significant portion of the Canadian investment community is not prepared for Canada’s transition to IFRS.”
“What really jumps out is the important educational role that investor relations professionals play in this transition,” said Tom Enright, President and CEO of CIRI. “Australian research shows companies that proactively provided a greater level of IFRS disclosure during their conversion to IFRS in 2005 benefitted from more accurate analyst forecasts. Therefore, we applaud those Canadian Issuers that have provided and are planning additional communication efforts to assist the Street in understanding the impact of IFRS. I strongly encourage other companies to follow suit.”
