TD Bank 2007 Annual Report Download - page 78

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TD BANK FINANCIAL GROUP ANNUAL REPORT 2007 Management’s Discussion and Analysis74
The Bank expects to adopt the following accounting standards
in the future. See Note 1 to the Bank’s Consolidated Financial
Statements for more details of future accounting and reporting
changes.
Capital Disclosures
The CICA issued a new accounting standard, Section 1535,
Capital Disclosures, which requires the disclosure of both quali-
tative and quantitative information that enables users of finan-
cial statements to evaluate the entity’s objectives, policies and
processes for managing capital. This new standard is effective
for the Bank beginning November 1, 2007.
Financial Instruments
The CICA issued two new accounting standards, Section 3862,
Financial Instruments – Disclosures, and Section 3863, Financial
Instruments – Presentation, which apply to interim and annual
financial statements relating to fiscal years beginning on or
after October 1, 2007. The Bank intends to adopt these new
standards effective November 1, 2007.
Accounting for Transaction Costs of Financial Instruments
Classified Other Than as Held For Trading
On June 1, 2007, the EIC issued EIC-166, Accounting Policy
Choice for Transaction Costs, which allows an entity the
accounting policy choice of recognizing all transaction costs
in net income or adding to the initial carrying cost those
transaction costs that are directly attributable to the acquisition
or issue of the financial instrument for all similar financial
instruments other than those classified as held for trading.
The guidance is effective beginning November 1, 2007. The
new guidance is not expected to have a material effect on
the financial position or earnings of the Bank.
ACCOUNTING STANDARDS AND POLICIES
Future Accounting and
Reporting Changes
U.S. GAAP
Defined Benefit Pension and Other Post-retirement Plans
The Bank adopted the Financial Accounting Standards Board
Statement No. 158, Employers’ Accounting for Defined Benefit
Pension and Other Postretirement Plans on October 31, 2007.
Effective November 1, 2008, the standard also requires that the
date at which the benefit obligation and plan assets are mea-
sured should be the fiscal year end date. As a result, the Bank
will no longer be permitted to measure its defined benefit plan
up to three months earlier than the Financial Statement date.
Income Taxes
Effective November 1, 2007, the Bank will be required to adopt
the Financial Accounting Standard Board (FASB) interpretation
on income taxes. The interpretation provides guidance on rec-
ognition, measurement and disclose of income tax benefits and
liabilities. We are in the process of assessing the impact of this
guidance on the Bank’s Consolidated Financial Statements.
Fair Value Measurements
Effective November 1, 2008, the Bank will be required to adopt
the FASB guidance on fair value measurements. The new guid-
ance will primarily impact the Bank’s fair value measurements
relating to financial instruments and also requires the Bank to
make increased disclosures about its fair value measurements.
We are in the process of assessing the impact of this guidance
on the Bank’s Consolidated Financial Statements.
Fair Value Option for Financial Assets and
Financial Liabilities
The FASB accounting standard on the fair value option for
financial assets and liabilities permits an entity to choose to
measure eligible financial instruments at fair value with the
change in the fair value recognized in income. The standard
will be effective for the Bank on November 1, 2008.