We understand the specialized markets in which you operate and provide tailored solutions to meet your unique business needs.
Our comprehensive suite of business services combines industry expertise, market knowledge and professional insights.
MNP is a leading national accounting, tax and business consulting firm in Canada.
Suite 2000, 330 5th Ave. S.W.
MNP careers are Different by Design. As an entrepreneurial firm, we truly believe there are no limits to where your career can go.
Alberta Securities Commission (“ASC”) has released its
2011 Corporate Finance Disclosure Report.
The report highlights weaknesses identified through their review of first quarter interim filings of Reporting Issuers (“RIs”) that transitioned to IFRS. Although the findings were for RIs in Alberta, we believe that the findings would be useful for issuers across Canada.
Based on their findings, the ASC has identified specific expectations for the first annual IFRS financial statements and related Management Discussion and Analysis (“MD&A”):
IFRS 1 requires an explanation of the impact of adopting IFRS on financial position, financial performance and cash flows therefore the financial statements need to:
Because IFRS is principles based, there are many options available regarding accounting policy selection. In their report, the ASC noted many boilerplate accounting policies.
In order to enhance disclosure, the RI could disclose the factors assessed in order to reach a conclusion on the applicable accounting policy selected.
The ASC commented that RIs are not providing disclosure in the MD&A that supplements what has been disclosed in the financial statements.
As Reporting Issuers prepare to file their first IFRS compliant annual financial statements, there are specific considerations that should be addressed in the annual financial statements and MD&A. Ensure you consider these items to avoid the pitfalls of inadequate disclosure.
This article has been prepared for informational purposes only and is not intended for any other purpose. We do not assume any responsibility or liability for losses occasioned by you in reliance on this information. We would be pleased to discuss with you the issues raised within the context of your particular circumstances. Please contact your
local MNP Public Companies advisor.
Find an office near me