TD Bank 2010 Annual Report Download - page 78

Download and view the complete annual report

Please find page 78 of the 2010 TD Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

TD BANK GROUP ANNUAL REPORT 2010 MANAGEMENT’S DISCUSSION AND ANALYSIS76
are critical to the Bank, however it is difficult to assess the impact of
these changes to the Bank’s Consolidated Financial Statements as
certain of these accounting standards and their interpretations are yet
to be finalized.
The Bank continues to dedicate significant resources to the conversion
to IFRS. A detailed analysis of the differences between IFRS and the
Bank’s accounting policies as well as an assessment of the impact of
various alternatives has been completed for internal review and assess-
ment. Training continues to be provided to key employees and the impact
of the transition on our business practices, information technology,
and internal controls over financial reporting is being closely monitored.
a) IFRS Transition Program Summary
To manage the transition to IFRS, the Bank implemented a comprehen-
sive,
enterprise-wide program supported by a formal governance
framework.
The key activities of the IFRS transition program include
developing a project governance framework, updating accounting
policies, preparing financial statements, building financial reporting
expertise, identifying impact on business processes and information
technology; implementing internal controls over financial reporting
(ICFR), and implementing appropriate disclosure controls and procedures
(DC&P), including investor relations and communication plans. The
Bank’s implementation plan consists of the following phases: (i) Program
Initiation and Planning; (ii) Detailed Assessment; (iii) Design and Solution
Development; and (iv) Implementation.
IFRS TRANSITION PROGRAM
Program Initiation and Planning
Detailed Assessment
Design and Solution Development
Implementation
Parallel Year
Fiscal 2012
First year of reporting under
IFRS starting with the
first quarter of 2012
Oct. 31, 2011 Oct. 31, 2012
Fiscal 2011
IFRS Opening Consolidated
Balance Sheet as at Nov. 1, 2010
Oct. 31, 2010
Fiscal 2010
Oct. 31, 2009
Fiscal 2009
Oct. 31, 2008
ACCOUNTING STANDARDS AND POLICIES
Future Accounting and
Reporting Changes
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.
Conversion to International Financial Reporting Standards
in Fiscal 2012
The Accounting Standards Board (AcSB) confirmed that Canadian GAAP
for publicly accountable entities will converge with International Financial
Reporting Standards (IFRS). For the Bank, IFRS will be effective for the
interim and annual periods beginning in the first quarter of 2012. The
fiscal 2012 Consolidated Financial Statements will include comparative
fiscal 2011 financial results under IFRS.
The International Accounting Standards Board (IASB) issues interna-
tional financial reporting standards (IFRS). IFRS uses a conceptual
framework similar to Canadian GAAP, but there are some differences
related to items such as recognition, measurement and disclosures.
Currently, the IASB has several projects to review and amend existing
IFRS, with an expected completion date into fiscal 2011. The Bank is
closely monitoring these changes as many of these accounting standards
KEY ACTIVITIES AND MILESTONES RELATED PHASE STATUS
1. Project Governance Framework
Establish program structure and raise awareness,
including the following:
• Form Steering Committee and project teams,
which consist of Finance, Technology,
Internal Audit, and Program Office.
• Establish progress reporting protocols and
project management practices.
• Determine processes for consensus of key
decisions and project oversight.
• Hold IFRS overview sessions at various levels
within the Bank.
Program Initiation
and Planning;
Detailed Assessment
• All milestones have been completed.
• The Steering Committee is kept informed of project status and
key policy decisions. The Audit Committee receives regular
updates. External advisors have been engaged to assist with
certain elements of IFRS analysis. The Bank’s external stakeholders,
the Office of the Superintendent of Financial Institutions Canada
(OSFI) and the external auditors are kept apprised of the progress
of the project.