OSC Releases Report On Asset Impairment And Segment Reporting Disclosure

On September 20, the OSC's Office of the Chief Accountant published a bulletin setting out its observations in regards to issuers' asset impairment and segment reporting in light of IAS 36 Impairment of Assets and IFRS 8 Operating Segments.

Areas of improvement identified with respect to asset impairment disclosure included issuers' description of cash generating units, explanations of the events and circumstances that contributed to the impairment loss and explanations of the basis of key assumptions and the valuation approach used to determine the recoverable amount.

In respect of segment reporting, the notice stated that issuers should pay particular attention to identification of the Chief Operating Decision Maker, identification of operating segments, aggregation of operating segments to form reportable segments, change in reportable segments and entity-wide disclosures.