Accounting Standards in Canada: future directions.

OVERVIEW

The Accounting Standards Board is requesting public input concerning its future directions as a basis for developing a five-year plan for the period 2005-2010. The Board seeks broad-based input that will assist it, in consultation with the Accounting Standards Oversight Council, in deciding where to focus its attention and resources.

The Board is interested in any input on its direction and strategy, but it particularly wishes to test some of the directions set out in the 1998 Final Report of the CICA Task Force on Standard Setting and the Board's current Terms of Reference. Four key issues are whether Canada should:

* maintain its own standard-setting capability:

* maintain its own GAAP or adopt either US GAAP or International Financial Reporting Standards;

* maintain the current strategy of working to support the international convergence of accounting standards while harmonizing with US GAAP; and

* consider modifying current GAAP requirements to provide better information to the users of financial statements of various different types of entities through, for example, a wider application of differential reporting.

INVITATION TO COMMENT

The Accounting Standards Board has issued an Invitation to Comment seeking input on strategic issues affecting accounting standard setting in Canada. The Board invites individuals and organizations to send written comments on the issues.

Who should read the Invitation to Comment

The Invitation to Comment is relevant to all those with an interest in financial reporting in Canada.

How to get the Invitation to Comment

The Invitation to Comment can be obtained from the CICA web site: www.cica.ca/ed

For those without Internet access, the Invitation to Comment can be obtained by writing to:

Information Services Officer

Standards Group

The Canadian Institute of Chartered Accountants

277 Wellington Street West

Toronto, Ontario M5V 3H2

Fax: [phone]

COMMENTS MUST BE RECEIVED BY SEPTEMBER 15, 2004