Monday, November 07, 2005

Translation of the French IFRS IAS 39

I am not convinced that the translation could easily apply in Canada because of our bijural system of private law. Since Canada is a federal state where provinces have jurisdiction over private law, Quebec uses civil code while other provinces uses common law. This means that accounting and tax rules apply in provinces that use different terminology, which are not interchangeable because the underlying concepts are different. For this reason, the Department of Justice has initiated a program for bijuralism which applies among other matters to financial as well as tax laws. As a former counsellor at Justice Dept., I can confirm that overlooking these matters could generate certain critical difficulties down the road. Therefore, I would suggest to consider reviewing these very important issues with IAS 39. Besides the United States have at least 2 jurisdictions, namely Louisiana and California, which have a private law system inspired form civil code.


Blogger MyTaxProfessor said...

There is a difficulty for people living in a unitary country to understand what it is to apply tax or fiancial laws in a multi-juridictional or even bijural country.

P. Riopel

9:38 PM  
Anonymous Anonymous said...

While I can appreciate the issues of biuralism in law, I fail to understand how it could affect the accounting methods unless the terminology itself is not defined in law such as in Canada.

5:25 AM  

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