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TELUS 2010 annual report . 87
8.2.5 Changeover status
Key activity Milestones (expected timeframes) Status and comments
Financial statement preparation
.Key elements phase
Identify, evaluate and select accounting policies
necessary for the Company to change over to IFRS
This phase includes other operational elements,
such as information technology, internal control
over financial reporting, and training
Initial choices completed and approved in 2009.
Ongoing review of IFRS exposure drafts has
not resulted in any changes to policy choices.
See commentary below
.Embedding phase Integrate the solutions necessary for the changeover
into the Company’s underlying financial systems
and processes (see Infrastructure below)
The Company has adapted its existing accounting
systems for parallel reporting under IFRS
Maintain two parallel sets of books: one according
to contemporary Canadian GAAP and one
according to contemporary IFRS
The Company maintained two parallel sets of books
in 2010, as planned
Develop financial statements formats
and note disclosures
Approval in principle received, with finalization
expected for first quarter 2011 reporting
Disclose the impacts on 2010 in the MD&A
when available
Disclosed quantified impacts starting with the
third quarter 2010 MD&A. See quantified impacts
in this MD&A in:
.Section 8.2.2 for unaudited effects on the
Consolidated statements of financial position
at the transition date and at December 31, 2010
.Section 8.2.3 for unaudited effects on the
Consolidated statements of income and other
comprehensive income for the year ended
December 31, 2010
.Section 8.2.4 for policy metrics and other
calculated measures.
Communication and training Provide ongoing training on expected IFRS impacts,
IFRS 1 elections and accounting policy choices
In 2008, externally sponsored seminars for
Finance managers were held in several locations
across Canada.
In 2009 and 2010, the Company leveraged internal
resources to implement general Finance-wide
training seminars and a number of targeted training
seminars for Finance team members who are
most affected by the IFRS convergence project.
General communication and education is
provided to all Finance team members highlighting
external IFRS resources available through TELUS’
internal IFRS website.
Infrastructure –
Information technology
Determine necessary changes to systems and
processes and update accounting systems to enable
the opening financial position under IFRS, and
facilitate dual reporting in 2010
Parallel reporting platforms were designed,
implemented and tested for operation in the fourth
quarter of 2009.
Dual reporting capability in the Company’s accounting
systems was activated in the first quarter of 2010.
Implement financial planning and forecasting
capability under IFRS standards
Dual forecasting capability was implemented in
the second half of 2010
Business policy assessment Assess impacts on contractual arrangements and
covenants. Implement changes as necessary
Contract reviews were conducted each quarter and
changes have not been required.
Calculations of the Leverage Ratio and Coverage
Ratio, specified in the Company’s 2012 credit facility,
are not affected by the IFRS changeover.
Management’s decision-making processes are not
significantly affected by the transition to IFRS. Policy
measures and other key measures for TELUS, as
well as segmented results and operating indicators,
are not significantly impacted (see Section 8.2.4).
MANAGEMENT’S DISCUSSION & ANALYSIS: 8