Sun Life 2010 Annual Report Download - page 33

Key elements and milestones Status
Accounting policy changes and financial reporting
‰Identify and document policy differences between Canadian
GAAP and IFRS by Q4 2009
‰Key accounting policy differences between Canadian GAAP
and IFRS have been identified and documented
‰Assess the presentation and disclosure requirements under
IFRS and develop pro forma financial statements and key
note requirements by Q2 2010
‰As new IFRS standards are finalized we will continue to
assess the impact on our accounting policies
‰Pro forma financial statements including major notes
requirements have been developed
‰Address interim and annual MD&A disclosure requirements
for IFRS ‰Periodic external disclosures are now complete
‰Prepare an opening balance sheet under IFRS as at
January 1, 2010, and quarterly 2010 comparatives for
reporting commencing in 2011
‰We have prepared our opening balance sheet and our 2010
quarterly comparative financial statements are in progress
with earlier quarters substantially complete
Information technology and data systems
‰Identify the impacts on our general ledger and accounting
feeder systems as a result of the accounting policy and
presentation changes under IFRS by Q4 2009
‰Changes to existing systems have been developed, tested
and implemented
‰Process and system controls that apply in the current
Canadian GAAP production environment remain in place,
and where applicable controls have been modified or added
to manage the IFRS conversion and ongoing production of
IFRS-based financial statements
‰Ensure that IFRS systems remain compliant throughout the
transition and implementation phase
‰Assess the impact, and make modifications where
necessary to data systems and reporting and analysis tools
outside the general ledger and accounting feeder systems ‰Accounting and general ledger systems and development of
systems outside the general ledger and accounting feeder
systems that are critical for interim reporting in 2011 were
completed in 2010
Impact on business activities
‰Review products and lines of business impacted by the
conversion to IFRS for profitability, pricing, product design
and asset-liability management by Q3 2009
‰We have completed our review of the impact of IFRS on
products and lines of business. The implementation of IFRS
on January 1, 2011 is not expected to have a material
impact on our business activities. We are monitoring
developments with respect to future accounting changes,
which are expected to have a more significant impact on our
business activities
‰Review all loan and credit facility documents to ensure
compliance under IFRS by Q3 2010
‰Determine the impact of IFRS changes on capital
requirements
‰Covenants within existing credit facilities have been
reviewed internally with no breaches identified
‰The impact of conversion on capital requirements is not
expected to be material due to the phase-in provisions
Disclosure Controls and Procedures and Internal Control over
Financial Reporting
‰Identify IFRS policy and related process changes for 2011
reporting (and 2010 comparatives) and assess necessary
modifications to our processes and reports
‰Our existing ICFR and DC&P have been maintained and
additional controls and sign-off processes have been
established for the preparation of 2010 comparative financial
statements and MD&A disclosure
‰Review all key controls and processes in our internal control
over financial reporting (“ICFR”) and our disclosure controls
and procedures (“DC&P”) under IFRS to ensure the integrity
of reporting by Q4 2010
‰Our ICFR and DC&P have been reviewed in light of IFRS
policy and related process changes. The required impacts
and changes to our ICFR and DC&P have been identified
and will be implemented in conjunction with 2011 reporting.
The impacts are not significant to our existing ICFR and
DC&P
Management’s Discussion and Analysis Sun Life Financial Inc. Annual Report 2010 29