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Part 1.

Issuer other than investment funds are required to disclose and discuss in the

Management Discussion and Analysis (MD&A) their IFRS changeover plan, any major

differences between their current accounting policies and the ones required to apply under IFRS.

Issuers should also discuss the potential impacts IFRS has on issuer’s financial statements and

their business activities. Comparative and reconciliation information are required to be disclosed

on the changeover date. More detailed and quantified information should be disclosed as time

progresses. For investment funds that are a reporting issuer, they are required to discuss in their

Management Report of Fund Performance (MRFP) any impacts that IFRS have or expected to

have on the investment fund, its the financial position, and its results. The changeover plan to

IFRS for each fund or fund family should also be disclosed in either MRFP or the notes to the

financial statements. Quantitative data should be disclosed a year before the changeover.

Disclosure should emphasize on specific material information, risks, and certainty that can help

investors to better understand IFRS impacts on the fund.

The Timeline

2008: Prepare transition plan and provide qualitative IFRS disclosure in MD&A. Train for IFRS

2009: Review IFRS policy choices and system implications, update disclosure in MD&A

2010: Gather comparative data for use in 2011, add quantitative IFRS disclosure in MD&A

2011: Begin to report using IFRS as the primary GAAP

* For Investment fund: The timeline for changeover to IFRS has been delayed for one year.

(“IFRS”) The mandatory changeover date has changed from January 1, 2011 to January 1, 2012.
Disclosure Requirements for Disclosure Requirements for

Issuers other than investment Investment Funds


 Discuss the accounting policies  Discuss the timing and the key

that the issuer has or expects elements of the investment

to adopt fund’s IFRS changeover plans

 Disclose adoption methods  Discuss IFRS potential impact

permitted under the new on each investment fund or

standards, and the methods fund family’s business

that the issuer plans to use arrangements

 Discuss the anticipated effects  Describe new accounting

on the issuer’s business and its polices and the fund’s

financial statements. implementation decisions

 Disclose the timing of IFRS  Disclose the new net asset

transition plan and discuss key value per unit if it is affected by

elements that are affected by IFRS

IFRS. This includes accounting

policies, information

technology and data system,

internal control, disclosure

controls and procedures, All the information above

financial reporting expertise, references CSA Staff Notice 52-

and business activities (e.g. 350. Please refer to Appendix A for

hedging activities, more details.

compensation arrangement).
Works Cited

Canadian Securities Administrators. “CSA Staff Notice 52-320 Disclosure Of Expected Changes

In Accounting Policies Relating To Changeover To International Financial Reporting

Standards.” Govt. of Canada, 9 May 2008. Web. 19 Feb. 2011.

"International Financial Reporting Standards (IFRS)." OSC. Ontario Securities Commission,

8 Feb. 2011. Web. 11 Feb. 2011. <>