The Canadian Securities Administrators (CSA) have provided
revised guidance on the use of non-GAAP financial measures aimed at
ensuring that information disclosure by issuers does not mislead
investors. An updated version of CSA Staff Notice 52-306 (Revised) Non-GAAP Financial
Measures (Notice 52-306) was published on January
14, 2016 reflecting amendments to IAS 1 Presentation of
Financial Statements (IAS 1) regarding additional subtotals
presented in financial statements.
Notably, Notice 52-306 recognizes that an issuer's GAAP may
require the presentation of additional subtotals in the financial
statements when such presentation is relevant to an understanding
of the issuer's financial position or financial performance as,
for example, may be required by paragraphs 55 and 85 of IAS 1.
Issuers who wish to include these additional subtotals in a press
release or outside of the issuer's financial statements before
the financial statements are filed on SEDAR should explain the
subtotals' composition so as to avoid any confusion. Notice
52-306 states that this may be done by including a copy of the
statement containing the additional subtotals or reconciling the
additional subtotals to the most directly comparable line item
specified or defined by IFRS that will be presented in financial
statements. Issuers should also comply with the requirements
found in IAS 1 applicable to additional subtotals presented in the
statement of financial position and statement of profit or loss and
other comprehensive income.
As before, Notice 52-306 includes, among other things, specific
guidance to issuers regarding additional GAAP measures required by
IFRS and a list of suggested practices to help issuers address
obligations in relation to additional GAAP measures. Notice 52-306
was last updated on February 17, 2012.
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.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
While most are well aware that the sale of a business is generally a complex process, even sophisticated business owners are surprised by just how much cost and effort is required to complete the sale.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).