Canadian accountants Guardians of Accounting Standards have decided – – if I understand their October 2004 Strategic Document (cue Gustave Holst Planets soundtrack) correctly — to move to International rather than US Generally Accepted Accounting principles.
Hmmm.
Velly intevesting
I am sure it is mere coincidence that David Herle of Earnscliffe was involved with polling accountants.
Great…. another multi billion dollar bilingual/metric system scam… just what we need..
I’m a CA.
I admittedly only scanned the Strategic Planning document but I’m not sure what part of the paper is supposedly so damning. The portion on US/Canada relations talks about the CA/CPA reciprocity and how this must also consider the requirements of other accounting bodies.
I might have missed the portion referred to…as I only spent ten minutes on a 72 page pdf…however I would like a precise reference
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Ahhhhhh,yes.And why not?The Yank system has a nasty habit of getting to the rot and rooting it out,unlike we Canuckistanians and Europe.Can’t have that,can we? Case in point.The Chinese just bought 40% of the Syncrude oilsands project called “Aurora”.Oh well,just another great step in our de-evolution to socialism/communism.
Per Ardua Ad Astra
GAAP may be all well and good, but you need a bulldog State’s Attorney to make ’em all come clean.
Disclaimer: I know nothing about this subject. I just thought the post looked worthy of tossing out for more attention and discussion.
Why the change in Accounting standards?
From SDA comes a post over at Plato’s Stepchild concerning a possible move by CICA to change Canada’s accounting standards from GAAP to International standards.
Plato’s Stepchild is concerned with this article about CICA’s new…
Actually if I am not correct here, the international standards existing and being proposed are largely base on US and British rules. The idea being to improve upon them both where possible. Outside of the US, it is generally believed that British standards are highest and thus the nod to their system.
Much of the revolution in accounting aside from mundane issues such as according depreciation etc., is the move towards a standardized internal audit function. I’ve been involved with management accounting for awhile and know that the scandals that hit the US could easily begin to happen in Canada next. That problems in Nortel etc are surfacing do not give comfort to the notion that CA’s and their guidance is anything approaching superiority. The world is moving to a need for greater internal governance of financials from external bodies on a day to day basis.
As usual Canadian socialists resisted every opportunity to be front and centre in this new world and preferred to sit back and protect their own turf.
New Accounting Standards, huh? Any predictions as to when someone will prosecuted in THIS country for that?
Ineresting points fubar brings up. I was going to make points of my own having lived in Corpus Christi and Ventura. But I have to go digging in boxes so will revert to the current mess for now..
There is more reason for an election now, not less. The Right to call an election falls to the Governor General not Pilfering Paul.
The Grewal tape fiasco clearly demonstrates the dishonesty of the Libscammers.
This added on top of over ten years of Hundreds of millions in diverted and pilfered funds. What more is required?
Presently the CPC and the Libs are scrapping over tape details, using our house of commons for a free court room.
This is now a legal contest between parties and belongs in a civil court where they can pay fees and allow our house of commons to return to the Nation’s business.
The Liberals margins are so shaky, they are hamstrung and can not properly carry on the affairs of Canada.
Exactly the conditions when the Governor General has a sworn duty to dissolve parliament and call an election.
If the Governor General fails to execute her sworn duty in a timely manner, she may then be found complicit with the Liberal Party in a scheme to maintain Liberal Power contrary to the laws of Canada.
See a suggested letter to the Gov. general at BendGovernment.blogspot.com 73s TonyGuitar
As a CPA (and hopefully a CA once a write the reciprocity exam this fall), this announcement is moot. Any company that lists on a U.S. market, or wants access to U.S. capital (the bulk of publically traded companies) follow U.S. GAAP anyhow.
It is funny how these ‘standards’ are going to help reduce accounting standards – which they aren’t. Most of the accounting ‘scandals’ – Enron, MCI, Nortel – all of them were following GAAP – and all disclosed. The problem is the complexity in accounting and all the disclosures make a set of financial statements like reading the Versailles treaty.
When I do due dilligence for M&A activities, I throw the financial statements in the garbage and pull out all the tax returns. The reasons are simple: they have every incentive to be conservative on their revenues, and the penalties are much more severe.
Many Canadian companies already report in both Canadian GAAP and US GAAP. Further to A Ziggen’s comment about the eventual convergecnce of international accounting standards, check out this short article from CA Magazine: http://www.camagazine.com/index.cfm/ci_id/25672/la_id/1.htm
I think the accounting standards issue is a non-story, save for mention of David Herle name in the CICA’s report. Such an overtly political animal such as Herle shouldn’t be involved in a process that should be apolitical.
Sorry about going off topic like that Kate. I was bowling down the middle and it turned into a gutter ball.
Accounting is such hard work. I don’t know how those guys stand it.
I sure like thumbnail Audit summaries though.
Where would the pros look to find audit results for Federal Lotteries and gaming?
73s TG