2010-07-29 CSA Review of 2009 IFRS Transition Disclosure

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This Newsletter contains the Canadian Securities Administrators review of 2009 IFRS Transition Disclosure.

CSA IFRS Transition Disclosure Review The Canadian Securities Administrators (CSA) recently issued Staff Notice 52-326, IFRS Transition Disclosure Review. It includes the results of the CSA's review of IFRS transition disclosures made by issuers in 2009 annual MDA, as required by CSA Staff Notice 52-320 Disclosure of Expected Changes in Accounting Policies Relating to Changeover to International Financial Reporting Standards. It also provides example disclosures for entity specific transition differences and additional guidance.

This Newsletter summarizes the areas for improvement identified by the CSA's review. For 2009 example IFRS transition disclosures and the results of the Ontario Securities Commission's IFRS Transition Disclosure Review, refer to Newsletter 2010-03-02 OSC Disclosure Review and Example MD&A Disclosures - Compliance with CSA Staff Notice 52-320.
CSA Staff Notice 52-320 requirements for 2009 For entities adopting IFRS in 2011, CSA Staff Notice 52-320 required the following to be included in an issuer's MDA in 2009:
  • Status update on the issuer's IFRS changeover plan;
  • Detailed discussion of the key elements of the changeover plan;
  • Discussion of significant differences in accounting policies and their impact on the issuer's financial statements; and
  • Disclosure about whether the transition has or will result in a change to the issuer's business functions and activities.
Summary of findings Overall, the CSA found an improvement in the volume and quality of IFRS transition disclosures in 2009. However, some areas for improvement were identified, including that issuers should:
  • Provide an in-depth discussion of all key elements assessed as part of their changeover plans, including areas that have been assessed and determined to not be impacted;
  • Continue to focus on enhancing disclosures about milestones and anticipated timelines for changeover; and
  • Improve discussions on accounting differences and accounting policy changes, including linking transition differences to affected balance sheet or income statement items.
Full report A copy of the full report can be obtained from the OSC's website at http://www.osc.gov.on.ca/documents/en/Securities-Category5/sn_20100723_52-326_ifrs-transition.pdf
 

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