The Mutual Fund Dealers Association of Canada is asking whether it should require all firms to adopt international accounting standards.

Canadian accounting standards setters have decided that international financial reporting standards, IFRS, will replace current Canadian Generally Accepted Accounting Principles for publicly accountable enterprises, effective Jan. 1, 2011.

The question for the MFDA centers around the fact that not all of its members will meet the definition of a publicly accountable enterprise (PAE). According to the current definition, it appears that only Level 4 dealers holding client assets in nominee name meet the definition of a PAE and will be required to file financial reports in accordance with IFRS by 2011.

As a result, the MFDA is considering whether to require all members to submit financial reporting based on IFRS; or to only require IFRS reporting from Level 4 dealers, with other dealers allowed to report either in IFRS, or in accordance with private enterprise GAAP. It is seeking input from dealers and their auditors on these options.

Comments are due by July 13.

IE