IFRS and Canadian GAAP – Managing the IFRS Implementation Project

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As Canada transitions from Canadian GAAP to IFRS, it will be very important to properly manage the implementation process. Change Management is a key area to consider – assessing change and managing the company’s approach to it, will make the difference between success and failure. It will require a solid understanding of your company’s culture, its strengths and weaknesses and its ability to plan and rally behind goal-directed change – strong leadership will be the key to success.

Change Management includes the processes, tools and techniques for managing the people side of change. It is a method for structuring change and communications needed to reduce and manage resistance to change. When implementing process, technology or organizational change. It is about managing change to achieve specific results.

Converting to IFRS will require a business wide change management exercise and should be approached using a structured methodology based on sound Project Management principles. The IFRS conversion process will be most successful with the use of a strategic planning approach. This approach generally follows a 3 step Change Management methodology:

Step 1 prepares for change – which includes preparation, assessment and strategy development.

Step 2 manages change – including detailed planning and change management implementation.

Step 3 reinforces change – which includes data gathering, corrective action, and recognition.

It is helpful to view this methodology as a sample 5 Phase IFRS Conversion Roadmap, which is explained in further detail in a separate blog. 

I hope this helps. This is one of a series of blogs that is meant to convey information relating to Canada’s transition from Canadian GAAP to IFRS.

For further information, please refer to the ongoing series of IFRS blogs on the Edelkoort Smethurst Schein CPA’s LLP web-site and please remember to contact your accounting professional for further guidance.