May 22, 2009

Latest from the Canadian Securities Administrators

CSA updates views on possible changes to securities regulations

On May 21, 2009, the CSA released CSA Staff Notice 52-324 Issues relating to changeover to International Financial Reporting Standards, which clarifies the CSA Staff’s views on securities regulation matters related to adoption of IFRS in Canada.

The proposals are as follows:

• If an issuer applies for and receives exemptive relief to early adopt IFRS, any previously filed interim financial statements in that year of adoption would be re-filed using IFRS. Revised interim MD&A and interim certificates will also be required


• The balance sheet at the date of transition (i.e., January 1, 2010, for calendar year-end companies) would be included in the first interim financial statements. In addition, if the auditors are engaged to review the interim statements, the opening balance sheet must also be reviewed


• Accounting principles in an issuer's financial statements and accompanying auditors' reports would refer either to IFRS or to both IFRS and Canadian GAAP


• Relief would be given from the existing requirements in securities legislation for all financial statements to be prepared in accordance with the same accounting principles for all periods presented. This proposal would allow an issuer to present financial information prepared in accordance with Canadian GAAP in offering and continuous disclosure documents alongside financial information prepared in accordance with IFRS, if the entity’s periods for financial information straddle the adoption date of IFRS.

The CSA Staff has also acknowledged that a first-time adopter in 2011 may face some challenges in meeting filing deadlines for its first interim financial statements under IFRS. The CSA Staff is exploring ways to assist issuers in meeting those challenges, including extending the filing deadline for the first interim filings for periods beginning on or after January 1, 2011.

The CSA Staff expects to publish for comment the details of the above proposals later this year.

Read the CSA Staff Notice 52-324 for more information on the proposed changes to securities regulations.

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