The Committee of European Securities Regulators (CESR) has issued a consultation paper indicating that it expects Canada to make the transition to international accounting standards by 2011, as planned.

In the meantime, it suggests that European regulators may accept Canadian GAAP.

The paper contemplates a potential decision on the equivalence of the accounting standards of both Canada and South Korea. It reports that CESR has conducted an assessment of the existing program to adopt IFRS in Canada, focusing in particular on whether this program is comprehensive and capable of being completed before December 31, 2011.

It finds that “effective measures are being taken to secure a timely and complete transition to IFRS by that date”, and it says that the Canadian authorities “are showing a commitment to the adoption program”.

“CESR is consequently of the opinion that the adoption program in Canada is comprehensive and has no reason to doubt that the Canadian [Accounting Standards Board] will achieve its objectives by 2011,” it concludes.

“On this basis, if the commission were minded to allow Canadian issuers to use Canadian GAAP when accessing EU markets, CESR would recommend the commission accept Canadian GAAP,” it says.

Comments on the paper are due by April 25.