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This note discusses the appropriate accounting treatment for contingencies under International Financial Reporting Standards and identifies key differences relative to Accounting Standards for Private Enterprises. Accounting for contingencies covers provisions, contingent liabilities, and contingent assets. The note discusses both how to decide whether a provision should be recorded and how to measure a provision. Further, the note clarifies the differences between provisions and contingent liabilities, discusses when contingent assets should be recorded, and identifies specific guidance for restructuring provisions. Finally, disclosure requirements are identified.

The transition to International Financial Reporting Standards (IFRS) in 2011 and new pension rules coming into effect in 2013 bring increased transparency for Canadian companies with large defined-benefit pension plans. This means that the financial health and related risks will be more openly reflected in sponsoring companies’ financial statements. However, until uniform policies arrive in 2013, financial-statement users will need to be aware of the choices companies made upon adopting IFRS and how such choices impact their financial reporting. This article describes these choices and their impact on firms.

This note provides a summary of the guidance available in IAS 21: The effects of changes in foreign exchange rates, including a description of how to determine an entity's functional and presentation currencies, and the impact of this decision on the financial statements. The note also contrasts the IFRS approach to foreign currency transaction to the guidance provided by Accounting Standards for Private Enterprises.

An investor planning changes to her investment portfolio, looked at Sleeman Breweries Limited (SBL) as a potential investment opportunity. The company had experienced strong growth, primarily through mergers and acquisitions, and had achieved success within the very competitive beer industry. She needed to evaluate the risks and opportunities of investing in SBL. Using qualitative and quantitative information she had to: size-up the current and future management direction of the company; analyse SBL's financial data using the calculation and interpretation of ratios as an analytic tool; and prepare a statement of changes in financial position.