The Ontario Securities Commission (OSC) recently released the
results of its preliminary review of Ontario reporting issuers'
first International Financial Reporting Standards (IFRS) interim
financial reports for the quarter ended March 31, 2011. As well, in
IFRS Release No. 2 – A Reminder
Before You File Your First IFRS Interim Financial Report,
the OSC released a tip sheet to assist issuers in ensuring that
they include certain elements in their first IFRS interim financial
reports (the Tip Sheet). Both documents are available at this website, recently established by the
OSC to provide, in one place, information and guidance to assist
issuers with the transition to IFRS.
missing IFRS 1 reconciliation disclosures as required by
paragraph 32 of IFRS 1 First Time Adoption of International
Financial Reporting Standards;
missing opening IFRS statement of financial position on the
face of the financial statements, as required by subsection
4.3(2)(e) of National Instrument 51-102 Continuous Disclosure
Obligations (NI 51-102); and
missing statement of changes in equity as required by
subsection 4.3(2)(b) of NI 51-102 and paragraph 20(c) of IAS 34
Interim Financial Reporting.
The OSC noted that the majority of these deficient filings
appear to have been reviewed by the issuer's auditor, since
the filings did not include the accompanying notice required by
subsection 4.3(3) of NI 51-102 when an interim review has not been
performed. If the filings are not reviewed by the auditor, issuers
should ensure that they include this required notice.
The Release reminded issuers to ensure that their internal
control over financial reporting (ICFR) and disclosure controls and
procedures (DC&P) are robust enough to address changes
resulting from IFRS transition. The OSC recommended that where
necessary, issuers should establish or modify specific ICFR and
DC&P in order to prepare its financial statements in accordance
with IFRS and securities legislation.
Additional suggestions and reminders are noted in the Tip Sheet,
including, with respect to IFRS 1, reconciliations, notes to the
interim financial report, unreserved statements of compliance with
IAS 34 Interim Financial Reporting, and disclosure
regarding accounting policies.
Issuers that have yet to report their interim IFRS financial
reports should carefully review the guidance and suggestions
offered in the Release and the Tip Sheet. Further guidance on IFRS
reports and disclosure is available by clicking here.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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