Transition To IFRS: Is Your Disclosure Of The Transition Process Adequate?

With less than a year to go until the changeover to International Financial Reporting Standards ("IFRS") as the basis for the preparation of financial statements by Canadian public issuers, it is important for issuers to review their current progress towards IFRS conversion and their disclosure about the IFRS transition process, particularly as they are finalizing their 2009 annual MD&A.

The transition from Canadian GAAP to IFRS (mandated by the Canadian Accounting Standards Board to be adopted for financial years beginning on or after January 1, 2011) is a substantial undertaking that has the potential to affect an issuer's reported financial position, operating results and business functions. Disclosure about an issuer's transition process is required by MD&A Form 51-102F1. Important guidance is also provided in CSA Staff Notice 52-320, Disclosure of Expected Changes in Accounting Policies Relating to Changeover to International Financial Reporting Standards and