Close & reporting
IFRS conversion
Books converted from ASPE to IFRS, or built directly on IFRS, for the Canadian private companies that end up reporting to an overseas parent, a foreign lender or an investor who expects IFRS rather than the ASPE basis most private Canadian corporations use by default.
Management report
Illustrative client · August 2026
CAD
| Line | Aug | Jul | |
|---|---|---|---|
| Revenue | 142,380 | 131,904 | +10,476 |
| Cost of sales | (51,260) | (48,115) | (3,145) |
| Gross profit | 91,120 | 83,789 | +7,331 |
| Payroll | (46,300) | (45,900) | (400) |
| SoftwareNoted | (6,480) | (5,490) | (990) |
| Rent | (8,000) | (8,000) | 0 |
| Other operating | (9,215) | (9,870) | +655 |
| Net income | 21,125 | 14,529 | +6,596 |
Reviewer's note
Software is up on last month after two seats were added mid-month. Revenue includes one milestone invoice that will not repeat next month.
Illustrative. An example of the document, not a client's figures.
Why a private Canadian company would choose or need IFRS
Canadian private companies default to ASPE, a standard built specifically to be lighter than IFRS for owner-managed businesses. A subsidiary of a European or other IFRS-jurisdiction parent, a company preparing for an IPO, or one raising from investors who expect IFRS statements, moves to IFRS instead, either by first-time adoption or by ongoing dual reporting.
What the conversion covers
A line-by-line reconciliation between the ASPE and IFRS balances is built, with adjustments concentrated in the areas where the two frameworks diverge most: revenue recognition (IFRS 15's five-step model against ASPE's simpler approach) and leases (IFRS 16 brings most leases onto the balance sheet; ASPE largely does not). Where the conversion is a first-time adoption, an opening IFRS balance sheet is built with the transition adjustments documented.
A memo the parent's accountants can follow
Every adjustment and its basis is documented in a conversion memo, not just booked as a journal entry with no explanation. That matters most at year end, when a parent's own auditors or the eventual IPO underwriters want to see the reasoning, not just the resulting number.
Not an attest opinion
We prepare the converted books and the memo behind them. Any attest work on those IFRS financials, including issuing an opinion, sits with a licensed public accounting firm, separate from this work.
Questions
Frequently asked questions: IFRS conversion
Why would a private Canadian company need IFRS instead of ASPE?
Usually because a foreign parent, an investor or a lender outside Canada expects IFRS statements, or the company is preparing for an IPO or a cross-border transaction.
What changes most between ASPE and IFRS?
Revenue recognition and lease accounting move the most: IFRS 15 uses a five-step revenue model and IFRS 16 brings most leases onto the balance sheet, both stricter than the ASPE treatment.
What happens to our ASPE statutory books after converting to IFRS?
They keep running alongside the IFRS figures, clearly labelled, since the statutory filing requirement does not disappear just because a parent or investor also wants IFRS.
Is this a one-time conversion or ongoing?
Either. Some companies need a one-time first-time-adoption conversion; others need IFRS maintained alongside ASPE on an ongoing basis, and we support both.
What exactly is included in iFRS conversion?
Line-by-line reconciliation between US GAAP and IFRS balances, and adjustments for the areas where the two frameworks diverge most, including revenue timing and leases. This work runs inside NetSuite or Sage Intacct, whichever your business already has in place, and it rolls into your regular monthly close rather than sitting off to the side as a separate, unreconciled process.
Why would a US business need IFRS books?
Usually because a foreign parent, investor or lender outside the United States requires IFRS reporting, or the business is preparing for a cross-border transaction.
Do you sign off on the IFRS conversion as an auditor would?
No. We prepare the converted books and the supporting memo; any attest or audit work sits with a qualified audit firm.
What software works with iFRS conversion?
IFRS conversion runs inside NetSuite or Sage Intacct, whichever you already use. If you are not yet set up in either, we can configure a file in your name so you keep ownership of it once the engagement is under way.
How do we get started with iFRS conversion?
Getting started with iFRS conversion begins with a short review of your current records and software access. Once that is done we confirm scope and timing in writing, and ongoing work begins on the schedule agreed with you.
Related services
- Close & reportingUS GAAP conversionBooks moved from cash basis or another framework onto US GAAP accrual accounting, with every adjustment documented so a lender, investor or auditor can follow the trail.
- Close & reportingConsolidationsMultiple entities, locations or subsidiaries combined into one consolidated set of financials, with intercompany balances eliminated while each entity still reports on its own.
Industries
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.