IFRS Impact on Canadian Tire
Key fundamentals - what won't change?
✓ The assertions underlying the financial statements themselves will not be changing -
existence, authorization, valuation etc.
✓ Double entry bookkeeping will be maintained - debits balance credits in every
recorded transaction
Balance Sheet (B/S) equation of "Assets = Liabilities + Equity" will not change
✓
Key fundamentals - what will change?
✓ Inter-period matching of costs to revenues as well as the concept of conservatism
(erring on the side of the accounting treatment that produces a lower reported net
income), for example, appear to have less bearing on the determination of standards
under IFRS
Some changes to the definitions of assets, liabilities and equity
✓
Substantially greater use of fair value concepts (vs. historical cost)
✓ Slight changes to financial statement presentation (especially the income statement)
✓
Substantially increased required disclosures (qualitative and quantitative) in the notes
to the financial statements
CO
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