CSA Review Shows Issuers are Improving Disclosure on IFRS Transition

TORONTO, July 23 /CNW/ - The Canadian Securities Administrators (CSA) today published Staff Notice 52-326 IFRS Transition Disclosure Review, showing an improvement in the quality of disclosure by reporting issuers on their upcoming transition to International Financial Reporting Standards (IFRS), as provided in their 2009 annual Management's Discussion & Analysis (MD&A).

The disclosure of a reporting issuer's preparation for the transition to IFRS is a key focus for investors when evaluating the readiness of a reporting issuer and the impact that IFRS adoption may have on its business activities and financial reporting. IFRS comes into effect in Canada on January 1, 2011.

"The CSA's review revealed that reporting issuers have enhanced the quality and amount of disclosure related to the changeover to IFRS, but more improvements should be made," said Jean St-Gelais, Chair of the CSA and President and Chief Executive Officer of the Autorité des marchés financiers (Québec). "We expect reporting issuers to continue to provide investors with disclosure that is increasingly robust and complete, as the 2011 transition is quickly approaching."

The purpose of the Notice is to summarize the results of the review and provide further guidance for reporting issuers preparing MD&A disclosure. The review found, among other things:

  • 95 per cent of reporting issuers reviewed disclosed their IFRS changeover plan in their 2009 MD&A
  • 60 per cent of reporting issuers reviewed described milestones and anticipated timelines associated with key elements of their changeover plan; and
  • 82 per cent of reporting issuers reviewed identified significant accounting policy differences between the current Canadian GAAP and IFRS. Even so, many reporting issuers could improve their discussion of accounting differences to help investors understand the implications of the IFRS transition that is specific to the issuer.

The CSA review accounts only for disclosure of reporting issuers' IFRS transition efforts, and does not examine the actual preparedness of an issuer. Guidance on IFRS transition disclosure was provided on May 9, 2008, in CSA Staff Notice 52-320 Disclosure of Expected Changes in Accounting Policies Relating to Changeover to International Financial Reporting Standards.

Reporting issuers that provide sufficient information about their conversion process and its effects prior to the changeover to IFRS will assist in reducing investor uncertainty as Canada transitions to IFRS in 2011.

Copies of the Notice are available on the websites of CSA members. The CSA, the council of the securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

SOURCE Canadian Securities Administrators

For further information: For further information:

Theresa Ebden
Ontario Securities Commission
416-593-8307 
Sylvain Théberge
Autorité des marchés financiers
514-940-2176
Mark Dickey
Alberta Securities Commission
403-297-4481
Ken Gracey
British Columbia Securities Commission
604-899-6577
Ainsley Cunningham
Manitoba Securities Commission
204-945-4733
Wendy Connors-Beckett
New Brunswick Securities Commission
506-643-7745
Shirley Lee Barbara
Nova Scotia Securities Commission
902-424-5441
Shourounis
Saskatchewan Financial Services Commission
306-787-5842
Janice Callbeck 
PEI Securities Office
Office of the Attorney General
902-368-6288 
Doug Connolly
Financial Services Regulation Div.
Newfoundland and Labrador
709-729-2594
Graham Lang
Yukon Securities Registry
867-667-5466
Louis Arki
Nunavut Securities Office
867-975-6587
Donn MacDougall
Northwest Territories
Securities Office
867-920-8984


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890