Developments Affecting Canadian SEC Filers
"Most conversations are simply monologues delivered in the presence of a witness." – Margaret Miller
Two things have happened recently that you need to be aware of if you're a Canadian SEC registrant.
The first is that the SEC has begun to review and comment on first time IFRS financial statements included in Canadian SEC filings. If you haven't got one already, you can expect a friendly letter soon. Remember, too, that communications with the SEC are a matter of public record.
The second relates to communications between auditors and audit committees. In August, the US Public Company Accounting Oversight Board approved new requirements for the auditor to discuss:
Its evaluation of the quality of the company's financial reporting. Certain matters about the company's accounting policies and practices on estimates including a description of the processes and assumptions management used in critical estimates. Significant unusual transactions including the underlying business rationale. Its views on significant accounting or auditing matters when they are aware that management has consulted with other accountants...
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