CSA Respond To Inquiries Regarding Prospectus Disclosure Of IFRS Transition

The CSA published a staff notice today in response to inquiries about the financial information to be included in a prospectus during the time of an issuer's transition to IFRS. As we have previously discussed, Canadian reporting issuers have generally been required to transition to IFRS effective as of January 1, 2011.

Specifically, the notice highlights the difference between the information required when preparing an IPO prospectus (which must include Q1 IFRS transition information) as opposed to a short form or non-IPO long form prospectus (which need not). Q1 IFRS transition information refers to an opening statement of financial position as at the date of transition to IFRS and IFRS 1 reconciliations for the date of transition to the most recent annual period. The notice also discusses accounting principles for financial statements in prospectuses filed in the first year after transition.