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Securities e-LERT: First Quarter Extension Granted for Transition to IFRS

Published: 10/28/2010

By Andre Boivin

In light of the near complete transition of Canada’s accounting framework from Canadian GAAP to international financial reporting standards (“IFRS”), the Canadian Securities Administrators (“CSA”) published several IFRS-related amendment notices. While the changes apply to a broad array of national instruments, policies and forms to accommodate the changeover set for January 1, 2011, companies should be particularly aware of two items that will directly impact their continuous disclosure obligations:

Filing Extension

The ordinary deadline for filing interim financial statements for an issuer is 45 days after the end of an interim period (60 days for venture issuers). For an issuer’s first interim financial report to be filed in the year of adopting IFRS (beginning on or after January 1, 2011) this deadline is extended to 75 days after the end of the first interim period (90 days for venture issuers). 

For non-venture issuers with a financial year-end of December 31, the first interim period financial report is due on June 14, 2011. For venture issuers with a financial year-end of December 31, the first interim period financial report is due on June 29, 2011.

CEO and CFO Certificate Changes

The shift from Canadian GAAP to IFRS also requires changes relating to the CEO and CFO certificates with respect to the disclosure in annual and interim filings. The CSA notice amends certain terms and phrases in the certificates to make them consistent with IFRS terminology. 

While the changes are minor in nature, compliance is necessary. Reporting issuers should ensure that their certificates are up-to-date by reviewing the notices or contacting their legal counsel.

More information on the above items can be found at the following links (click to view):

• International Financial Reporting Standards (IFRS)
• IFRS-Related Amendments to Securities Rules and Policies - Supplement to the OSC Bulletin

For further information regarding the transition to IFRS, continuous disclosure requirements, the CSA’s amendments or general information on securities matters for issuers, please contact a member of our Securities Group.