The Canadian Securities Administrators issued a notice providing guidance to issuers on the disclosure of expected changes in their accounting policies as they adopt International Financial Reporting Standards.

The CSA notes that the Canadian Accounting Standards Board recently confirmed January 1, 2011 as the date IFRS will replace current Canadian standards and interpretations as Canadian GAAP for publicly accountable enterprises (which include investment funds and other reporting issuers). The CSA is considering allowing domestic issuers to adopt IFRS at an earlier date.

Changing from current Canadian GAAP to IFRS will be a significant undertaking that may materially affect an issuer’s reported financial position and results of operations, the notice says. “Investors and other market participants will need timely and meaningful information about these matters during the reporting periods leading up to an issuer’s changeover to IFRS,” it adds.

The CSA’s guidance focuses on disclosure in issuers’ management discussion, but the CSA also encourages issuers, “to consider whether additional disclosure beyond MD&A might contribute to informing investors about how the issuer expects it will be affected by changeover to IFRS. An issuer should also consider whether requirements in securities legislation… might also require the issuer to disclose specific information about the broader implications of its changeover to IFRS.”

It applies to an issuer whose changeover date after January 2011, and issuers that adopt IFRS earlier if permitted by the CSA.