TORONTO, Feb. 13, 2018 /CNW/ - BMO Financial Group (TSX:BMO) (NYSE:BMO) today released on its website (www.bmo.com/investorrelations) a template of the Supplementary Financial Information package updated to reflect the Bank's adoption of IFRS 9 for the annual period beginning on November 1, 2017. The pre-quarter-end release of this template has been provided to help readers of the Bank's financial statements better understand how these changes will be reported.
As disclosed in BMO's 2017 Consolidated Financial Statements, the Bank adopted IFRS 9, Financial Instruments, which replaces the guidance in IAS 39, Financial Instruments: Recognition and Measurement. IFRS 9 does not require restatement of comparative period financial statements. The Bank has made the decision not to restate comparative period financial information, and has recognized any measurement differences between the previous carrying amount and the new carrying amount of financial instruments on November 1, 2017, through an adjustment to opening retained earnings. On transition to IFRS 9, the Bank will prospectively record the provision for credit losses on impaired and performing loans within the respective business segment in which the underlying financial asset is held for segment reporting purposes.
The Supplementary Financial Information template is available for download at https://www.bmo.com/home/about/banking/investor-relations/financial-information/quarterly-results.
It is possible that the Supplementary Financial Information package for the first quarter of 2018 may reflect further refinements related to IFRS 9, as well as other normal course first quarter reclassifications.
BMO Financial Group reports first quarter earnings on February 27, 2018.
Cautionary statement regarding forward-looking information
This document contains forward-looking statements. All such statements are made pursuant to the "safe harbor" provisions of, and are intended to be forward-looking statements under, the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may involve, but are not limited to, statements with respect to the impact of the adoption of IFRS 9, Financial Instruments and related changes to BMO's Supplementary Financial Information package.
By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that our assumptions may not be correct, and that actual results may differ materially from such predictions, forecasts, conclusions or projections. We caution readers of this document not to place undue reliance on our forward-looking statements, as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. Such factors include, but are the not limited to: the interpretation and application of IFRS 9, Financial Instruments and the related changes to our Supplementary Financial Information package; critical accounting estimates and the effect of changes to accounting standards, rules and interpretations on these estimates; and our ability to anticipate and effectively manage risks arising from all of the foregoing factors.
Please see the Enterprise-Wide Risk Management section on pages 78 to 112 of BMO's 2017 Annual Report, which outlines certain key factors and risks that may affect Bank of Montreal's future results. Investors and others should carefully consider these factors and risks, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. Bank of Montreal does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by the organization or on its behalf, except as required by law. The forward-looking information contained in this document is presented for the purpose of assisting our shareholders in understanding the impact of IFRS 9, Financial Instruments and the related changes to our Supplementary Financial Information package and may not be appropriate for other purposes.
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider – the 8th largest bank, by assets, in North America. With total assets of $710 billion as of October 31, 2017, and more than 45,000 employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, Wealth Management and BMO Capital Markets.
SOURCE BMO Financial Group
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