Air Canada 2009 Annual Report Download - page 70

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2009 Air Canada Annual Report
70
Summary of the IFRS changeover plan
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:
Key activities Status
Accounting policies and
implementation decisions
Identifi cation 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 fi nancial statement format;
Quantifi cation of effects of change in initial IFRS 1
disclosures and 2010 fi nancial statements.
The Corporation has identifi ed 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 continue to progress
towards the quantifi cation of the identifi ed
differences and choices throughout 2010.
Infrastructure
Financial reporting expertise
Development of IFRS expertise. The Corporation has provided training for key
employees and stakeholders. Additional training
will be ongoing until full adoption in 2011.
Infrastructure
Information technology and
data systems
Development of systems solution for transition period and
post-convergence period.
The Corporation has determined system
requirements and solutions. The impact with
respect to Information technology and data
systems is due to the change in accounting for
property, plant and equipment. These changes
have largely been implemented at nominal cost.
Business activities
Financial covenants
Identifi cation of impact on fi nancial covenants and business
practices;
Completion of any required renegotiations/changes by the
third quarter of 2010.
The Corporation is in the process of analyzing
the contractual implications of IFRS on any
fi nancing relationships and other arrangements.
Business activities
Compensation arrangements
Identifi cation of impact on compensation arrangements;
Assessment of required changes by the third quarter of 2010.
The Corporation is in the process of analyzing
any compensation policies that rely on indicators
derived from the fi nancial statements.
Control activities
Internal control over fi nancial
reporting
For all accounting policy changes identifi ed, assessment of
Internal Controls over Financial Reporting (“ICFR”) design
and effectiveness implications;
Implementation of appropriate changes by the second
quarter of 2010.
The Corporation is in the process of analyzing
any issues with respect to ICFR.
Control activities
Disclosure controls and
procedures
For all accounting policy changes identifi ed, assessment of
Disclosure Controls and Procedures (“DC&P”) design and
effectiveness implications;
Implementation of appropriate changes by the second
quarter of 2010.
The Corporation is in the process of analyzing
any issues with respect to DC&P.