10. Are disclosures regarding the pending changes resulting from an enterprise’s transition to IFRSs required before 2011?

CICA Handbook – Accounting, Section 1506, Accounting Changes, requires disclosure of the possible effect on a company of a new standard or revised standard that is not yet effective but has been issued and has not been applied in the company’s financial statements. However, 1506 was amended to exclude accounting changes resulting from the complete replacement of an entity’s primary source of GAAP, such as the change from current Canadian GAAP to IFRSs.

That does not mean disclosures are not required before 2011. The Canadian Securities Administrators (CSA) Staff Notice 52-320 provides guidance to issuers on the disclosures, expected in the Managements Discussion & Analysis (Form 51-102F), of the changes in accounting policies regarding an enterprise’s changeover to IFRSs. This guidance is applicable for the three years before the first year for which financial statements will be prepared in accordance with IFRSs. Therefore if your fiscal year is December 31, you should have been reporting under these guidelines beginning for your interim and annual statements in 2008.

The CSA Staff Notice above is looking for a description of an entity’s plan for transition to IFRSs, the key elements of that plan and its timing.

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