First Nations will face challenges meeting new accounting standards effective January 1, 2009 – free workshops available

FOR IMMEDIATE RELEASE

Ottawa, Ontario, September 8, 2009 – First Nations will face important changes to their financial reporting requirements that go into effect January 1, 2009, which may pose significant challenges for some communities.The changes relate to the recent decision by the Public Sector Accounting Board, the organization that sets accounting standards in Canada for governments, to eliminate the “local government standards” so that there is only one common government reporting model for local, provincial, territorial and federal governments. As a result, the Public Sector Accounting Handbook contains new accounting standards that apply to all levels of governments, including First Nations, and INAC has included the requirement for First Nations to report according to the common government reporting model in its year-end reporting handbook.

As a result of these developments, there will be significant changes to how First Nations report on their financial results. Two key changes are: 1) the requirement for First Nations to capitalize assets; and 2) how First Nation’s financial statements are presented.

Many First Nations do not have the capacity to respond to the changes in how they will be required to report.

To help First Nations meet this challenge, the Aboriginal Financial Officers Association (AFOA) of Canada is holding a series of free cross-country workshops focusing on guidelines for capitalization and amortization of capital assets.

The AFOA was founded in 1999 as a result of a joint initiative of the Assembly of First Nations and the Certified General Accountants Association (CGA) of Canada to raise financial and management skills in First Nations and build the foundation for self-government. AFOA’s premise is that developing finance and management skills is essential to Aboriginal economic and social prosperity. Since its founding, AFOA has built a solid reputation in developing Aboriginal educational and certification programs for financial managers.

Go to AFOA’s website at www.afoa.ca or call AFOA at 1-866-722-2362 to register for the free workshops and for more information.

Contact: Tamara Saulis at tsaulis[at]afoa.ca or 1-866-722-2362