2009-04-15 Closing the GAAP: New Canadian GAAP Pronouncements Affecting 2008 Financial Statements (updated to March 31, 2009)

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This Newsletter presents a summary of new Canadian GAAP pronouncements relevant to financial statements prepared for 2008 (updated to March 31, 2009 and including CICA Release No. 53, January 2009).

The following summarizes Canadian GAAP pronouncements that must be applied, if applicable, for the first time in 2008 to a company with a calendar year-end that is preparing financial statements in accordance with Canadian GAAP.

The listing includes the following pronouncements:

CICA Accounting Handbook Sections (“CICA”)
CICA Accounting Guidelines ("AcG")
Emerging Issues Committee Abstracts of Issues Discussed (“EIC”)

This Newsletter will be updated quarterly. Newsletter 2009-01-06 is superseded by this Newsletter. Developments since the previous Newsletter, if any, are highlighted in grey below.

Reference	Pronouncement and Effective Date
CICA 1400	Assessing going concern Amended to include requirements for management to assess and disclose an entity's ability to continue as a going concern. Effective for interim and annual financial statements for years beginning on/after January 1, 2008.

Reference	Pronouncement and Effective Date
CICA 1530 CICA 1651 CICA 3025 CICA 3051 CICA 3251 CICA 3855 CICA 3861 CICA 3862 CICA 3863 CICA 3865	Exemptions for non-publicly accountable enterprises The following CICA Handbook sections have been amended to exempt non-publicly accountable enterprises from mandatory adoption of these requirements: Section 1530 - Comprehensive Income Section 1651 - Foreign Currency Translation Section 3025 - Impaired Loans (limited exemption) Section 3051 - Investments Section 3251 - Equity Section 3855 - Financial Instruments - Recognition and Measurement Section 3861 - Financial Instruments - Disclosure and Presentation Section 3862 - Financial Instruments - Disclosures, Section 3863 - Financial Instruments - Presentation, and Section 3865 - Hedges
CICA 1535	Capital disclosures Establishes disclosure requirements about capital. Effective for interim and annual financial statements relating to years beginning on/after October 1, 2007. Amended in July 2008 to reduce disclosure requirements for non-publicly accountable enterprises. Amendments apply to interim and annual financial statements relating to years beginning on/after August 1, 2008. Early adoption is permitted.
CICA 3031	Inventories Supersedes CICA 3030, establishing standards for the measurement and disclosure of inventories. Applies to interim and annual financial statements relating to years beginning on/after January 1, 2008.
CICA 3855 CICA 3861 CICA 3862	Reclassification of financial instruments out of held-for-trading and available-for-sale categories CICA 3855 has been amended to permit reclassification of a financial asset out of the held-for-trading or available-for-sale category in specified circumstances. This amendment may be applied from July 1, 2008. CICA 3861 and CICA 3862 have been amended to establish disclosure requirements when an entity elects to reclassify an asset out of the held-for-trading or available-for-sale category in the circumstances specified in CICA 3855. Effective for reclassifications made on or after July 1, 2008.

Reference	Pronouncement and Effective Date
CICA 3862 CICA 3863	Exemptions for NPOs, co-operatives and rate-regulated enterprises These sections have been amended to permit not-for-profit organizations, and particular co-operative business enterprises and rate-regulated enterprises to apply CICA 3861, Financial Instruments - Disclosure and Presentation, in place of CICA 3862 and CICA 3863.
CICA 3862 CICA 3863	Financial instruments - disclosures and presentation These new sections, CICA 3862 (on disclosures) and CICA 3863 (on presentation) replace CICA 3861, revising and enhancing its disclosure requirements, and carrying forward unchanged its presentation requirements. Effective for interim and annual financial statements for years beginning on/after October 1, 2007. Implementation guidance has been added to CICA 3862 in March 2007. Amended in July 2008 to exempt non-publicly accountable enterprises from quantitative market risk disclosures, applicable for interim and annual financial statements relating to years beginning on/after August 1, 2008. Early adoption is permitted.
EIC 104	Refundable taxes, future income tax calculations and available-for-sale securities Amended on February 25, 2008 to address refundable taxes related to available-for-sale financial assets. Applies retrospectively to the date of adoption of CICA 3855.
EIC 169	Determining whether a contract is routinely denominated in a single currency Considers (i) how the term “routinely denominated” in CICA 3855.A34(d) should be interpreted, and (ii) what factors can be used to determine whether a contract for the purchase or sale of a non-financial item such as a commodity is routinely denominated in a particular currency in commercial transactions around the world. Applies for financial statements issued for interim and annual periods ending on or after March 15, 2008.
EIC 170	Conversion of an unincorporated entity to an incorporated entity Considers how the incorporation of a previously unincorporated entity should be reflected for financial reporting purposes, as well as several other issues related to such conversions. Effective for all conversions completed after April 2, 2008.
EIC 171	Future income taxes and exchangeable interests Addresses how an enterprise with exchangeable interests should account for future income taxes prior to, and upon, conversion of those interests. Applies to financial statements issued after August 28, 2008.

Reference	Pronouncement and Effective Date
EIC 172	Presentation of tax benefits related to tax loss carryforwards and amounts recorded in OCI Clarifies whether tax benefits from the recognition of tax loss carryforwards consequent to the recording of unrealized gains in other comprehensive income ("OCI") should be recognized in net income or in OCI. Effective for interim and annual periods ending on/after September 30, 2008.
EIC 174	Mining exploration costs Considers the issues of (i) when exploration costs related to mining properties may be be capitalized, and (ii) if exploration costs are initially capitalized, when should impairment be assessed to determine whether a write-down is required, and what conditions indicate impairment. Applies to financial statements issued after March 27, 2009. Applies to financial statements issued after March 27, 2009, except for entities that do not apply Section 3855 who may defer application to interim and annual financial statements relating to fiscal years beginning on or after January 1, 2010.

While we have attempted to make this Newsletter as complete as possible, it may not include all changes or modifications to existing authoritative literature that may affect a particular enterprise.