The Canadian Securities Administrators (CSA) Friday published proposed rules that are aimed at ensuring a smooth transition from current Canadian Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS).

National Instrument 52-107 Aceptable Accounting Principles and Auditing Standards sets out acceptable accounting principles and auditing standards for issuers and registrants to use when filing or delivering financial statements to securities regulatory authorities or securities regulators.

The proposed materials are intended to provide an efficient transition mechanism for issuers and registrants to reflect the change to IFRS, and produce high quality financial reporting for investors, the CSA says.

“The Canadian marketplace is making a fundamental change to its accounting standards, which reflects broader acceptance of a single set of accounting standards at the international level,” stated Jean St-Gelais, CSA chair and president & CEO of the AMF. “The CSA wants to ensure Canada’s market participants clearly understand how this change affects securities regulation so that they will be prepared when the change to IFRS is made.”

For financial years beginning on or after Jan. 1, 2011, domestic issuers and registrants will be required to use IFRS as incorporated into the Canadian Institute of Chartered Accountants Handbook. The proposed materials address changes to securities legislation that will result from the change to IFRS. This includes, for example, changes in terminology and disclosure requirements.

The CSA also published notices that propose IFRS-related changes to certain prospectus, continuous disclosure and certification rules. The proposed materials are posted on various CSA members’ websites and are available for comment until December 24.

IE