DD Support Board and Research Team

[1manband]

Issuers in Canada that trade in the US can either use Canadian GAAP or IFRS versus US GAAP

Canadian GAAP is no more. It has been IFRS only for Canadian issuers since 2011. And the nice thing about IFRS for Canadian issuers registered with the SEC is that they are not required to prepare a US GAAP reconciliation note which was required for Canadian GAAP. Much easier that way, and no need for a US firm to prepare the US GAAP note.

But as you stated, some Canadian issuers that have SEC registrations and trade in the US use US GAAP. But it is typically only companies that either have the majority of their operations in the US and/or sell products denominated in US dollars. It is very uncommon for smaller Canadian issuers to do so, especially since they can use the US dollar as their functional currency and still use IFRS.