Canadian Securities Administrators (CSA) - Environmental Reporting Guidance

The Canadian Institute of Chartered Accountants (CICA) commends Canada’s securities regulators for publishing additional guidance to help reporting issuers meet existing environmental disclosure requirements. The aim of the Canadian Securities Administrators (CSA) Staff Notice 51-333 on Environmental Reporting Guidance is to assist issuers in assessing which information must be disclosed on environmental matters, such as risks related to weather patterns or environmental legislation. (Read the CICA Media Release.)

CSA - Continuous Disclosure Review Program for March 31, 2010

Canadian Securities Administrators (CSA) have issued Staff Notice 51-332 Continuous Disclosure Review Program Activities for the fiscal year ended March 31, 2010, which summarizes the results of the CSA’s continuous disclosure (CD) review program. The number of reviews (1,351) represents a 23% increase from fiscal 2009 when the CSA conducted 1,094 reviews. The main reason for this increase was the completion of International Financial Reporting Standards (IFRS) transition disclosure reviews. To assist reporting issuers, Staff Notice 51-332 includes detailed examples of the common deficiencies found during the reviews in financial statements, Management’s Discussion and Analysis (MD&A) and oil and gas disclosure.

Recommendations to enhance corporate social reporting in Canada

York University’s Hennick Centre for Business and Law, together with Jantzi-Sustainalytics have issued a report on their Corporate Social Reporting Initiative. The report makes recommendations on how the Ontario Securities Commission (OSC) can begin to improve corporate disclosure of social practices. It addresses the reasons and scope for, and the regulation of, corporate social reporting which applies to areas such as human and labour rights, employee health and safety, local community development and product safety. It recommends that the OSC clarify existing disclosure obligations on the materiality of social issues to investors’ decisions and long-term corporate performance. It also recommends that the OSC facilitate continued dialogue among relevant stakeholders in order to support a shift toward more standardized metrics and reporting.

Canada -XBRL Annual Conference 2009

The XBRL Canada Annual Conference was held on November 5, 2009 in Toronto, Canada. The presenters included Paul Cherry, Chair of the IASB Standards Advisory Council, who spoke about the IASB and Convergence, David Blaszkowsky of the US Securities and Exchange Commission (SEC) who explained The Roll-out of Interactive Data Reporting for US-listed Public Companies, and Andrew Lowe of the Ontario Securities Commission (OSC) who discussed XBRL and the CSA. The conference provided regulatory filers and potential filers with an up-to-date status report and concrete help in getting organized for the adoption of IFRS and XBRL. (The presentations are available at the XBRL Canada website.)

Canada - CSA prepares for upcoming changeover to IFRS

The Canadian Securities Administrators (CSA) has published for comment National Instrument 52-107 Acceptable Accounting Principles and Auditing Standards, its Companion Policy and related amendments that are aimed at ensuring a smooth transition from current Canadian Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS).

CSA Continuous Disclosure Reviews for 2009

The Canadian Securities Administrators (CSA) has published a staff notice that summarizes the results of the continuous disclosure review program for the fiscal year ended March 31, 2009. During this period, the CSA completed 1,094 reviews, consisting of 465 full reviews and 629 issue-oriented reviews into specific areas including market turmoil, asset-backed commercial paper, defined benefit pension plan disclosures and financial instruments. Following a full or issue-oriented review, results are classified into one or more of five categories, depending on the seriousness of the matters noted. This year, 48% of the reporting issuers selected for review fell into the category of “prospective changes required. Of the total reporting issuers reviewed, 14% were contacted and alerted to specific areas where disclosure enhancements should be considered. A further 13% were required to amend or refile certain documents and 5% were either cease traded, placed on a default list or referred to Enforcement. (Read the CSA Staff Notice 51-329 Continuous Disclosure Review Program Activities for the fiscal year ended March 31, 2009.)

Canada - CFO Briefing on Transition to XBRL

By the end of 2011, about 450 Canadian companies listed on United States stock exchanges will have to implement Extensible Business Reporting Language (XBRL), an internationally recognized standard for electronic communications. The Canadian Securities Administrators (CSA) have voiced their support for XBRL but mandatory adoption is unlikely to occur until after Canadian companies transition to International Financial Reporting Standards (IFRS) in January 2011. A recent briefing published by the Canadian Institute of Chartered Accountants (CICA) introduces basic concepts, explores the benefits and downfalls of implementation, indicates the status of XBRL reporting in Canada and offers tips for preparation. (Read the July 2009 CFO Briefing - Transition to XBRL.)

Canada - CSA Staff Notice 52-324 on IFRS changeover

The Canadian Securities Administrators (CSA) has issued CSA Staff Notice 52-324 which addresses issues regarding the changeover to International Financial Reporting Standards (IFRS). The notice is an update on: use of IFRS by a domestic issuer for periods beginning prior to January 1, 2011; requirements for interim financial statements in the year of IFRS adoption; and reference to IFRS and Canadian GAAP. (Read the CSA Notice 52-324.)

XBRL Canada Webinar on XBRL and IFRS

XBRL Canada will host an interactive webinar April 15, 2009 to discuss the impact of XBRL and IFRS adoption on the regulatory environment for Canadian companies as seen by the Securities and Exchange Commission (SEC) and the Canadian Securities Administrators (CSA). There is no charge for this event. For more information, read the CICA Media Release or visit the XBRL Canada Blog.

CSA Proposals in Response to the Credit Market Turmoil

The Canadian Securities Administrators (CSA) have issued a Consultation Paper outlining several securities regulatory proposals related to the Canadian non-bank sponsored asset-backed commercial paper (ABCP) market. Shortly after events in international credit markets led to a seizure of the non-bank sponsored portion of the ABCP market in Canada, the CSA took a number of immediate steps, which included the formation of an ABCP working group to address securities regulatory issues stemming from the credit market turmoil. Those issues are examined in the CSA Consultation Paper.

PwC - Financial Reporting Release August 2008

PricewaterhouseCoopers (PwC) has released the August 2008 issue of Financial Reporting Release. Some of the topics covered are the future of IFRS, Canadian GAAP until the transition to IFRS, CSA views on transitioning to IFRS, IFRS for extractive and rate-regulated enterprises, Canadian GAAP for private enterprises, fair value accounting, complexity in accounting for financial instruments, not-for-profit organizations, emerging issues committee abstracts, and IASB projects in the pipeline.

Canada - Disclosing IFRS changeover plans in the MD&A

The conversion of Canadian standards to International Financial Reporting Standards (IFRS) is likely to cause significant changes in the financial reporting practices of publicly accountable entities regulated by the Canadian Securities Administrators (CSA). In Staff Notice 52-320, Disclosure of Expected Changes in Accounting Policies Relating to Changeover to International Financial Reporting Standards, the staff of the CSA provides guidance on their expectations. Disclosure of changeover plans is expected for entities that at the time of issuing an interim MD&A have developed a changeover plan, but in no case should that discussion be provided later than in the annual MD&A published for the period three years before the changeover date. For most entities, this means the annual MD&A for 2008, with consideration to be given to quarterly disclosures during 2008. For additional insight, read the Deloitte Canada publication How to Monitor a Sea Change: Discussing your IFRS changeover plan in the MD&A.

CSA update on continuous disclosure obligations

The Canadian Securities Administrators (CSA) has published an unofficial consolidation of all amendments to National Instrument 51-102 Continuous Disclosure Obligations, its forms and its companion policy current to July 4, 2008. This document is for reference purposes only and is not an official statement of the law.

CFO Beyond-GAAP Briefing: Forward-Looking Information

Recent changes to Canadian securities laws emphasize the importance of exercising appropriate due diligence when disclosing forward-looking information. Many public companies have revised forward-looking information disclosure practices to take advantage of the safe-harbour provisions in civil liability legislation. Similar practices are now required for all material forward-looking disclosures. (Find out more in CFO Beyond-GAAP Briefing: Forward-Looking Information.)

Canadian Securities Administrators address IFRS disclosure requirements

The Canadian Securities Administrators (CSA) has issued a staff notice addressing IFRS pre-adoption disclosure requirements for Canadian reporting issuers. CSA Staff Notice 52-320 Disclosure of Expected Changes in Accounting Policies Relating to Changeover to IFRS marks another significant step in Canada’s transition. The CSA is a forum for the 13 securities regulators of Canada's provinces and territories to coordinate and harmonize regulation of the Canadian capital markets.