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IFRS, the global accounting language.

IFRS Accounting Standards are required for Canada’s publicly accountable enterprises and available to others. IFRS 18 will change how every income statement looks from 2027.

IFRS in brief.

Type
Accounting standards (Part I of the CPA Canada Handbook – Accounting)
Standard setter
International Accounting Standards Board (IASB)
Adopted in Canada by
Accounting Standards Board (AcSB)
Required for
Publicly accountable enterprises
Optional for
Private enterprises, not-for-profits, pension plans
Next big change
IFRS 18, periods beginning on or after 2027-01-01

What, why and who.

What it is

IFRS Accounting Standards set how entities recognize, measure, present and disclose transactions in their financial statements. In Canada, the AcSB incorporates IFRS into Part I of the CPA Canada Handbook after reviewing the IASB’s due process.

Why it exists

To give investors comparable, transparent financial information across countries, and to let Canadian issuers raise capital internationally on a common basis.

Who it applies to

Publicly accountable enterprises: entities whose debt or equity trades in a public market, or that hold assets in a fiduciary capacity as a primary business. Securities regulators allow some alternatives, such as US GAAP for SEC registrants. Private enterprises and not-for-profits may choose IFRS instead of their own Canadian standards.

Authority and enforcement

The IASB writes the standards; the AcSB adopts them in Canada. Securities regulators enforce filing requirements for reporting issuers, and the Canadian Public Accountability Board inspects the auditors of public companies.

How it got here.

  1. 2011-01-01

    Canada’s changeover: most publicly accountable enterprises adopt IFRS.

  2. 2018–2019

    IFRS 9, IFRS 15 and IFRS 16 reshape financial instruments, revenue and leases.

  3. 2024-04

    IFRS 18, Presentation and Disclosure in Financial Statements, is issued to replace IAS 1.

  4. 2024-05

    IFRS 19 offers reduced disclosures for eligible subsidiaries; amended in 2025.

  5. 2026-01-01

    Amendments to IFRS 9 and IFRS 7 on classification and measurement take effect.

What it changes.

Systems and tools

  • Chart of accounts mapped to operating, investing and financing categories
  • Financial statement generator and report templates in the ERP
  • Data to reconcile management-defined performance measures

Processes

  • Comparative restatement on transition
  • Updated disclosure checklists
  • Close procedures for new subtotals

Governance

  • Controls over management-defined performance measures
  • Audit committee review of new presentation choices
  • Training for finance teams

If you do not comply

  • Modified audit opinion
  • Securities regulator reviews, refilings or restatements for reporting issuers
  • Investor and lender confidence issues
  • Inspection findings for the auditor

Changes ahead.

Announced and upcoming changes

  • 2027-01-01IFRS 18 applies: new operating profit subtotal, management-defined performance measures disclosed, new grouping rules. Early application permitted.
  • 2027-01-01IFRS 19 reduced disclosures available for eligible subsidiaries.
  • 2029-01-01IFRS 20 on regulatory assets and liabilities is expected to apply; confirm with the IASB.

Status checked 2026-10-03. Dates can move; confirm with the official sources below.

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