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News Release

Ontario Securities
Commission


20 Queen St. W.
Box 55, Suite 1900
Toronto, ON M5H 3S8
Commission des valeurs mobilières de l'Ontario
FOR IMMEDIATE RELEASE

February 5, 2010


OSC Review Shows Investors Require More Disclosure on IFRS Transition


TORONTO – The OSC published today Staff Notice 52-718 IFRS Transition Disclosure Review with results of a targeted review of the quality of disclosure by issuers of the upcoming changeover to International Financial Reporting Standards (IFRS).

The disclosure of an issuer's preparation for the January 1, 2011, changeover to IFRS is important to assist investors in evaluating the readiness of an issuer’s transition and the impact that IFRS adoption may have on its business activities and financial reporting.

“Issuers that provide sufficient information about their conversion process and its effects prior to the changeover to IFRS will assist in reducing any investor uncertainty as Canada transitions to IFRS in 2011,” said OSC Vice-Chair James Turner.

The purpose of this Notice is to summarize the results of the review of 106 reporting issuers and to provide additional guidance for issuers in their Management Discussion & Analysis (MD&A) filings. The review found, among other things:

  • 40% of issuers made no mention of an IFRS changeover plan in their MD&A disclosure
  • 60% of issuers discussed a changeover plan, with only half providing disclosure beyond a generic reference to the transition
  • Only half of the issuers that discussed their IFRS transition in their 2008 MD&A also provided investors with quarterly progress updates in 2009 interim MD&A documents

The recent review accounts only for disclosure of an issuer’s IFRS transition efforts and does not examine actual preparedness of an issuer. Guidance on IFRS transition disclosure was provided to issuers on May 9, 2008, in CSA Staff Notice 52-320 Disclosure of Expected Changes in Accounting Policies Relating to Changeover to International Financial Reporting Standards.

The published materials are available on the OSC Website.

 

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