On September 29, 2011, the Canadian Securities Administrators published Staff Notice 41-306 (the “Notice”) in response to inquiries about the financial information that must be included in a prospectus during the time of an issuer’s transition to IFRS. The purpose of the Notice is to outline the requirements with respect to Q1 IFRS transition information – being the opening statement of financial position as at the date of transition to IFRS, including IFRS 1 reconciliations for the date of transition to the most recent annual period.

The Notice provides insight on the differences between the financial disclosure requirements for Q1 IFRS transition information in an initial public offering (“IPO”) prospectus as opposed to a short form or non-IPO long form prospectus.

Specifically, the Notice confirms that Q1 IFRS transition information is required to be included in all IPO prospectuses but not in short form prospectuses or non-IPO long form prospectuses. As such, an issuer filing an IPO prospectus with Q2 or Q3 interim financials is still required to include either Q1 IFRS transition information or the entire Q1 IFRS financial report. The Notice also discusses accounting principles for financial statements in prospectuses filed in the first year after transition.