The Canadian Securities Administrators today released a notice summarizing the results of their continuous disclosure review program for fiscal 2011. The CSA ultimately reviewed the disclosure of 1,351 issuers, consisting of 436 full reviews and 915 issue-oriented reviews (which focused on such issues as IFRS transition disclosure, certification and disclosure of material contracts). The reviews resulted in 70% of issuers reviewed being required to take some action to improve disclosure, with 16% being required to amend and refile certain continuous disclosure documents and 40% requiring changes or enhancements in their next filings.
Common deficiencies identified by the CSA's review included boilerplate disclosure in MD&A that lacked analysis, insufficient financial statements disclosure relating to note disclosure and measurement issues, and insufficient disclosure of executive compensation information. Of particular interest, the CSA's notice provides guidance addressing identified deficiencies and provides examples of more robust disclosure.
For fiscal 2012, the CSA stated that their main focus will be on IFRS transtion disclosure.