This publication demonstrates the application of the more common IFRS requirements for first-time annual IFRS financial statements for Canadian investment funds. The financial statements are those for a hypothetical Canadian open-ended mutual fund trust with a diverse portfolio of investments (Sample Fund). For certain of the more important issues, we have provided our observations and, when relevant, a discussion about the Canadian securities requirements and the views of regulators expressed to date. Although Sample Fund is an open-ended mutual fund trust, we have also provided insights on additional issues and implications for other common fund structures in Canada.
A major factor impacting investment funds’ financial reporting in Canada is NI 81-106. As at the date of preparation of these illustrative financial statements, the CSA had not yet completed its planned revisions to this instrument. As a result, these illustrative financial statements have been prepared based on the provisions we expect will apply in the final revised version of NI 81-106 (including the proposed amendments included in the CSA’s October 2009 Request for Comments). Also note that the IASB has proposed amendments to IFRS 9 which could impact the classification and measurement of investments held by some investment funds. Once issued, the final requirements may be different and could require updates to the content and presentation of the accompanying illustrative financial statements.