Air Canada 2008 Annual Report Download - page 70

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2008 Air Canada Annual Report
70
As a result, the Corporation has developed a plan to convert its consolidated financial statements to IFRS establishing a
cross-functional IFRS team represented by managers in the areas of Accounting, Taxation, IT and Data Systems, Internal
Control and Processes, Planning, Compensation, Treasury, Investor Relations and Legal. Updates regarding the progress of
the conversion plan are provided to the Corporation’s Audit Committee on a quarterly basis.
The plan addresses the impact of IFRS on Accounting policies and implementation decisions, Infrastructure, Business
activities and Control activities. A summary status of the key elements of the changeover plan is as follows:
Accounting policies and implementation decisions
• Keyactivities:
- Identification of differences in Canadian GAAP and IFRS accounting policies;
- Selection of the Corporation’s ongoing IFRS policies;
- Selection of the Corporation’s IFRS 1 First-time Adoption of International Financial Reporting Standards
(“IFRS 1”) choices;
- Development of financial statement format;
- Quantification of effects of change in initial IFRS 1 disclosures and 2010 financial statements.
• Status:
- The Corporation has identified differences between accounting policies under Canadian GAAP and accounting
policy choices under IFRS, both on an ongoing basis and with respect to certain choices available on conversion,
made in accordance with IFRS 1;
- The Corporation will progress towards the quantification of the identified differences and choices throughout
2009 and 2010.
Infrastructure
• Financialreportingexpertise
- Key activity:
• DevelopmentofIFRSexpertise.
- Status:
• TheCorporationhasprovidedtrainingforkeyemployeesandstakeholders.Additionaltrainingwillbe
ongoing until full adoption in 2011.
• Informationtechnologyanddatasystems
- Key activity:
• Developmentofsystemssolutionfortransitionperiodandpost-convergenceperiod.
- Status:
• TheCorporationisintheprocessofidentifyingsystemrequirementsandsolutions.
Business activities
• Financialcovenants
- Key activities:
• Identicationofimpactonnancialcovenantsandbusinesspractices;
• Completionofanyrequiredrenegotiations/changes.
- Status:
• TheCorporationisintheprocessofanalyzingthecontractualimplicationsofIFRSonanynancing
relationships and other arrangements.