FRS and ASPE Interpretation - Term Paper Example

6 Difference and similarities of financial statements …………………………………………..7 Conclusion……………………………………………………………………………………7 References……………………………………………………………………………………8 Expectations for Canada and around the world Introduction Statistics Canada is reporting the Canadian financial system recorded its strongest performance in life span of eight months in November.

It showed a growing 0.4% on a month over month basis. This gain has exceeded its market expectations since it is the result of a strong performance by the service sector as we as gas and oil grilling. In a research done it shows that the increase in November yield divines well for a final fourth quarter gross domestic product (GDP) annualized expansion which was 2.3% that would match with the bank of Canada forecast. In this research it shows some decline in other sectors such as; construct ion and manufacturing.

The Canadian dollar later gained its value after the statistics release while outputs on Canadian bond rose slightly. It is good number as well as it is going forward to December’s gross domestic product (GDP) which exited in 2010. Many economists believed that this renaissance in the service area may be short-term while customer demands appeared to be more stringent mortgage and cooling insurance rules which may reduce the housing market and measured growth in the construction and service area yield through 2011 (Donald E. K.,2002).

A Convergence of Expectations Full convergence is estimated by 2011 but there are a number of serious activities that require to be completed prior to 2011 either to satisfy regulatory needs and financial reporting or to make sure that when first month of 2011 arrives, everything will be in a position to en sure a smooth transition. The main goal of this is to assist financial account preparers in determining what conversion activities are crucial now and which activities can wait until later.

Through the implantations and careful planning of good thought out implantation plan, change to IFRS can be cost effective and smooth exercise. This will help Canadian publicly liable financial accounts preparers in scoping out the important activities of the change from Canadian GAAP to IFRS. Convergence of accounting standards toward a common set of top quality account ting principles is seen in the public best interest and later will provide a more common language for financial reporting g.

By improving GAAP, it will help to achieve convergence. The fast conversion and increase of complex standard might bring in challenges for some stakeholders such as financial account preparer community. Enough time to react to the change, new standard and intensive efforts to tell all stakeholders of the conversions; will require to be provided with global implementations (Donald E. K., 2002). IFRS This is an international financial reporti