OSFI posts amended disclosure guidelines

Canada’s solvency regulator, the Office of the Superintendent of Financial Institutions (OSFI), has amended its guidelines for financial disclosures, taking into account recent changes made to the Canadian Accounting Standards, CICA Handbook.
“The new Canadian Accounting Standards, CICA Handbook section 3862, Financial Instruments — Disclosures introduces new and expanded accounting standards for financial instruments, including derivatives,” OSFI notes in a letter to property and casualty insurance companies and other financial institutions affected by the guidelines.
“As a result of this new accounting standard, OSFI has made consequential amendments to its series of Annual Disclosure Guidelines (D-1, D1A and D-1B) and to Guideline D-6 Derivatives Disclosure to ensure they are consistent with the disclosure requirements and terminology of the new standard.”
The amended guidelines can be found on OSFI’s Web site at http://www.osfi-bsif.gc.ca/osfi/index_e.aspx?ArticleID=2843.
The amendments to the CICA handbook are based on Canada’s anticipated move to International Financial Reporting Standards (IFRS) scheduled for 2011.
The move to IFRS will call for companies to make disclosures of their financial instruments according to a three-tiered model based on fair value of the investments.
OSFI said in its post that, apart from the changes it has already made, it would not be making further amendments to its guideline on derivatives disclosure at this time, “as we are awaiting the completion of work at the international level regarding changes to derivative requirements.”