Insurance sector leading the way in IFRS transition: PwC

Sixty-two per cent of the Canadian insurance sector reports being more than 60% complete in its transition to International Financial Reporting Standards (IFRS), according to a PricewaterhouseCoopers’ survey.The results of IFRS Readiness in Canada: 2010 are based on responses from 146 senior financial executives across Canada.Out of the top four industries to respond to the survey (mining and oil and gas extraction, manufacturing, utilities and insurance), the utilities industry was the only sector closer than the insurance industry to a complete transition, with 73% of the utilities sector reporting it was more than 60% complete.Among the four largest industry groups represented in the survey, insurance companies anticipated having their IFRS opening balance sheet ready earlier than other sectors.Seventy-one per cent of insurers expect to have it ready by the end of 2010 Q2, compared with 67% of utilities, 56% of mining and oil and gas extraction companies and 47% of mining companies. Of all the respondents, 68% had budgeted $500,000 or less for the conversion in Canada.Fifteen per cent had reserved between $1 million and $5 million for the transition and 7% budgeted between $500,000 and $1 million. Only 5% budgeted more than $5 million.