TORONTO, Nov. 20 /CNW/ - The Chartered Accountants of Canada are encouraging companies to provide investors with transparent information ahead of the transition to International Financial Reporting Standards (IFRS) to avoid last minute surprises about the effects of the conversion.

Canada, in 2011, will adopt the international accounting standards employed by more than 100 other countries when its Generally Accepted Accounting Principles (GAAP) for publicly-accountable enterprises convert to IFRS. Each entity needs to tailor its communications to its stakeholder community and the particular challenges that IFRS conversion presents. The Canadian Institute of Chartered Accountants (CICA) is providing guidance on how companies can provide useful information to investors in the period leading up to the changeover through a new publication titled: Pre-2011 Communications About IFRS Conversion.

"The guidance advocates a proactive and transparent communication strategy to minimize any uncertainty and to respond to investors' needs," said Chris Hicks, Principal, Knowledge Development, with the CICA. "The publication elaborates on the expectations of the Canadian Securities Administrators for pre-2011 MD&A disclosures relating to the changeover to IFRS."

The publication, developed by the CICA's Canadian Performance Reporting Board (CPRB), is available electronically on the CICA's Performance Reporting Resource Centre website (www.cica.ca/cpr). The Board focuses on guidance about the measurement and reporting of organizational performance outside of financial statements.

"The better the communications through the transition process, the easier it will be for users to understand the effects of the changeover and adapt to reporting in accordance with IFRS," said Viki Lazaris, CPRB chair and head of investor relations at BMO. "Both preparers and investors will be best served by a transparent and thorough dialogue in the period leading up to 2011. While all entities will need to meet regulatory requirements, the extent of disclosures about the conversion to IFRS will depend on an entity's specific circumstances and the needs of its investors."

The Canadian Institute of Chartered Accountants (CICA), together with the provincial, territorial and Bermuda Institutes/Ordre of Chartered Accountants, represents a membership of approximately 74,000 CAs and 10,000 students in Canada and Bermuda. The CICA conducts research into current business issues and supports the setting of accounting, auditing and assurance standards for business, not-for-profit organizations and government. It issues guidance on control and governance, publishes professional literature, develops continuing education programs and represents the CA profession nationally and internationally. CICA is a founding member of the International Federation of Accountants (IFAC) and the Global Accounting Alliance (GAA).