Issuers’ financial statements must comply with the accounting and auditing standards permitted by National Instrument 52-107 Acceptable Accounting Principles and Auditing Standards. In addition, the Canadian Securities Administrators (CSA) requires financial statements to include certain disclosure beyond the disclosure required by IFRS.
This page summarizes IFRS-related disclosure requirements adopted by the CSA that are in addition to disclosure required under IFRS issued by the International Accounting Standards Board (IASB). This section also outlines where to find guidance on how to comply with some IFRS-related requirements.
Additional requirements beyond those specified under IFRS
- An issuer’s first interim financial report in the year of adopting IFRS must include:
- an opening IFRS statement of financial position at the date of transition to IFRS; and
- in the notes to the financial statements, an unreserved statement of compliance with International Accounting Standard 34 Interim Financial Reporting (IAS 34) regardless of whether an explicit and unreserved statement of compliance with IFRS can be made (i.e. even if a full versus condensed set of financial statements is presented).
- An issuer’s interim financial reports filed after the first interim financial report must include in the notes to the financial statements an unreserved statement of compliance with IAS 34 regardless of whether an explicit and unreserved statement of compliance with IFRS can be made (i.e. even if a full versus condensed set of financial statements is presented).
Annual and Interim MD&A for the year before changeover to IFRS and during the year of transition
Documents that provide guidance on MD&A disclosure include:
Additional GAAP Measures
We updated CSA Staff Notice (SN) 52-306 Non-GAAP Financial Measures and Additional GAAP Measures and National Policy (NP) 41-201 Income Trusts and Other Indirect Offerings to reflect IFRS provisions regarding presentation of financial statements. As per CSA Staff Notice 52-306 Non-GAAP Financial Measures and Additional GAAP Measures:
IFRS mandates certain minimum line items for financial statements and requires presentation of additional line items, headings and subtotals when such presentation is relevant to an understanding of an entity’s financial position and performance. IFRS also requires the notes to financial statements to provide information that is not presented elsewhere in the financial statements, but is relevant to an understanding of any of them.
Our revised guidance distinguishes four types of financial information:
Minimum
F/S Line Item | 
| Defined line items (e.g. total comprehensive income) |
| No additional disclosure |
Non-GAAP Measure |
| Measure derived from a minimum line item and is not presented in the financial statements |
| Provide disclosure about the measure and its relationship to the issuer’s GAAP (consistent with former SN 52-306) |
Additional GAAP Measure |
| Measure in financial statements because it is “relevant to an understanding” |
| If presented prior to filing financial statements (e.g., news release) describe the measure and explain its composition |
Distributable Cash |
| Defined in NP 41-201 |
| Provide disclosure parallel to that for a non-GAAP measure, even if distributable cash is presented in financial statements |
Pro Forma Financial Statements
We have changed our rules to remove the requirement to reconcile acquisition statements to the issuer’s GAAP in most scenarios. Instead, the pro forma income statement may include adjustments to conform amounts to the issuer’s GAAP and accounting policies.
In the year of transition, an issuer has two options with respect to pro forma statements in a business acquisition report:
Option 1:
- interim pro forma balance sheet and income statement both prepared under IFRS; and
- annual pro forma income statement prepared under old Canadian GAAP.
Option 2:
- interim and annual pro forma financial statements both prepared under IFRS.