Canadian Regulator Decides Against Allowing Early Adoption of Recent IFRSs by Certain Entities
The Canadian Office of the Superintendent of Financial Institutions (OSFI), an independent agency of the Government of Canada that supervises and regulates Canadian banks, insurers, and federally registered private pension plans, has issued a letter in which it concludes entities which it regulates should not early adopt many standards recently issued by the IASB.
In making its decision, the OSFI considered a number of factors such as industry consistency, OSFI policy positions on accounting and capital, operational capacity and resource constraints of Federally Regulated Entities (FREs), the ability to benefit from improved standards arising from the financial crisis and the notion of a level playing field with other Canadian and international financial institutions. OSFI concluded that FREs should not early adopt the following new or amended IFRSs, but instead should adhere to their mandatory effective dates:
- The 'suite of five' standards on consolidation: IFRS 10Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements, IAS 28Investments in Associates and Joint Ventures (effective 1 January 2013)
- Amendment to IAS 19 Employee Benefits (effective 1 January 2013)
- Amendment to IAS 1 Presentation of Items of Other Comprehensive Income (effective 1 July 2012)