This case shows reported net income and shareholders’ equity under both Canadian GAAP and IFRS. It also includes an explanation of Canadian GAAP and IFRS rules for each item that Thomson Reuters would report differently under IFRS.
The case can be used in combination with Thomson (A) to consider differences between Canadian GAAP (which is similar to U.S. GAAP) and IFRS. It can also be used to discuss how difficult it would be to change from either Canadian or U.S. GAAP to IFRS. To facilitate that discussion, the case includes Thomson Reuters’ request to adopt IFRS early. The firm expects that to be a simple conversion because Reuters already reports using IFRS. Most U.S. firms own overseas operations that also report locally using IFRS, so many of them could easily convert to IFRS.