Briefly:

(April 16, 2008) Accounting agency Ernst & Young is calling on regulators to allow early adoption of International Financial Reporting Standards. The new accounting standard is currently not slated to come into effect until 2011, but E&Y suggests that the Canadian Securities Administrators allow companies to adopt it as early as January 1, 2009.

“Right now, we’re working with companies that have foreign-based entities or subsidiaries in places where IFRS is already a requirement,” says Lou Pagnutti, chairman and CEO of Ernst & Young Canada. “Early adoption could provide significant advantages for them, as well as for those considering IPOs in both Canada and the U.S.”

IFRS will replace the current accounting standard, Canadian Generally Accepted Accounting Principles, and provide the basis for consistent financial reporting across participating countries.

Companies that are listed in the U.S., and therefore registered with the Securities and Exchange Commission, should be allowed to continue reporting under U.S. GAAP rules, E&Y says.

“There’s rapidly growing interest in the U.S. for the use of IFRS for domestic issuers, so this issue may become moot in the near future,” Pagnutti says. “For the time being, however, we believe it would be best for the CSA to leave the U.S. GAAP option open to Canadian-based SEC registrants.”

On Monday, the Certified General Accountants Association of Canada called for Canadian businesses to start training on IFRS early, to ensure they are ready for the 2011 change.

“In this complex global business environment, it is critical that those involved in the development of financial information have a thorough understanding of what IFRS mean for their organizations,” said Anthony Ariganello, president and CEO of CGA-Canada.

BMO expands resource team

(April 16, 2008) BMO Capital Markets has announced the appointment of Carl L. Kirst as a senior research analyst, covering the natural gas industry for the firm’s equity research group. Kirst will be based out of Houston, Texas.

“With Carl Kirst covering natural gas companies in both the U.S. and Canada, we continue to build upon our cross-border strategy of providing our clients with relevant and integrated investment ideas,” said Jack Blackstock, co-head of equity research, BMO Capital Markets.

Kirst is a ten-year veteran as a natural gas analyst, covering pipeline, processing and utility distribution companies for Merrill Lynch, Jefferies and most recently Credit Suisse Securities.

(04/16/08)

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.