Guy Legault, president and COO of the Certified General Accountants Association of Canada is calling for a public policy discussion about possible changes to Canadian accounting standards, to protect the long-term financial health of Canadians and the economy.

“This issue is far too important to remain behind closed doors,” says Legault. He will take his message of open public discussion, to Canada’s Accounting Standards Oversight Council on May 3. He suggests that so far, plans and decisions about possible changes are being made without the kind of broad public discussion so necessary to achieve the right long term objectives for Canada.

“Enron has caused a crisis of confidence in financial reporting,” notes Legault. “It’s also provided an opportunity to make necessary reforms, and confirms what we’ve known for some time. U.S. accounting standards, with their heavy emphasis on narrow prescriptive rules rather than broadly based principles and sound professional judgment, contributed to obscuring Enron’s true financial situation until it was too late.”

As the standards reform discussion gets underway, CGA-Canada is calling for further investigation into the adoption of international accounting standards in Canada – those of the International Accounting Standards Board. In 1999, CGA-Canada announced its formal support for the adoption of IASB standards in Canada. “Enron has reaffirmed our view on the necessity for IASB standards in Canada,” says Legault. “I’m pleased to see growing support for the widespread adoption of IASB standards among accounting leaders around the world, as the post Enron debate takes place.”