Toronto – The Canadian Securities Administrators
(CSA) published today CSA Staff Notice 51-328 to assist reporting
issuers in preparing their financial statements and Management’s
Discussion and Analysis (MD&A) in the current market environment.
The notice highlights some specific areas for which clear disclosure
will be important to help investors understand the risks and circumstances
facing issuers. It outlines areas for consideration, including financial
instruments, going concern, impairment of goodwill and long-lived
assets, and discusses additional considerations for junior resource
The current economic uncertainty and financial market volatility
make it especially important for an issuer to clearly disclose the
present and anticipated impacts of market conditions on its operations,
financial condition, liquidity and future prospects.
Receiving information necessary to understand an issuer’s
current and prospective financial position and its operating results
is critical for investors. Therefore, MD&A disclosure should
be sufficiently detailed and avoid boilerplate statements. The areas
discussed in the notice are not new requirements and should not
be considered an exhaustive list. Rather, they are intended to provide
guidance to issuers.
The CSA, the council of the securities regulators of Canada’s
provinces and territories, co-ordinates and harmonizes regulation
for the Canadian capital markets.
For more information:
| Laurie Gillett
Ontario Securities Commission
Manitoba Securities Commission
Autorité des marchés financiers
| Wendy Connors-Beckett
New Brunswick Securities Commission
British Columbia Securities Commission
Nova Scotia Securities Commission
Alberta Securities Commission
Saskatchewan Financial Services Commission
Office of the Attorney General
Prince Edward Island
Financial Services Regulation Div.
Newfoundland and Labrador
Yukon Securities Registry
Nunavut Securities Office