TD Bank 2011 Annual Report Download - page 149

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TD BANK GROUP ANNUAL REPORT 2011 FINANCIAL RESULTS 147
TRANSITION TO IFRS
NOTE 34
As noted in Note 1, the Bank is transitioning to IFRS effective for
interim and annual periods beginning November 1, 2011. The Bank is
required to prepare an opening IFRS Balance Sheet as at November 1,
2010, the date of transition to IFRS which forms the starting point for
its financial reporting in accordance with IFRS.
In preparing the opening IFRS Balance Sheet as at November 1,
2010 the Bank has applied the requirements of IFRS 1. IFRS 1 requires
first-time adopters to retrospectively apply all effective IFRS. However,
IFRS 1 provides for certain elective exemptions and certain mandatory
exceptions from full retrospective application of IFRS as further
described herein. The relevant mandatory exceptions include:
• Derecognition of Financial Instruments (Securitizations)
• Hedge Accounting
The elective exemptions taken by the Bank include:
• Employee Benefits
• Business Combinations
• Designation of Financial Instruments
• Cumulative Translation Differences
All other adjustments below relate to differences between Canadian
GAAP and IFRS. The Bank’s estimates under IFRS are consistent with
estimates previously made under Canadian GAAP at the same date,
after adjusting for differences in accounting policies.
The following is a reconciliation of the Bank’s opening balance sheet
from Canadian GAAP to IFRS.
Reconciliation of Consolidated Balance Sheet from Canadian GAAP to IFRS
(millions of Canadian dollars) As at
Nov. 1, 2010
Effect of Transition to IFRS1
Mandatory Elective
Exceptions Exemptions Other Presentation
Canadian GAAP
under IFRS 1 under IFRS 1 Adjustments Changes2
IFRS
ASSETS ASSETS
Cash and due from banks $ 2,574 – – – – $ 2,574 Cash and due from banks
Interest-bearing deposits Interest-bearing deposits
with banks 19,136 – – – – 19,136 with banks
21,710 – – – – 21,710
Securities
Trading 59,542 5,494 – (795) (546) 63,695
Trading loans, securities and other
– – – – 51,470 51,470 Derivatives2
Financial assets designated at
– (918) – – 3,068 2,150
fair value through profit or loss
Available-for-sale 102,355 (25,727) 9,936 123 – 86,687 Available-for-sale securities
Held-to-maturity 9,715 – (9,715) – – –
171,612 (21,151) 221 (672) 53,992 204,002
Securities purchased under Securities purchased under
reverse repurchase reverse repurchase
agreements 50,658 – – – – 50,658 agreements
Loans Loans
Residential mortgages 71,482 65,211 22 (384) (150) 136,181 Residential mortgages
Consumer instalment Consumer instalment
and other personal 100,821 – – 6,554 – 107,371 and other personal
Credit card 8,870 – – – – 8,870 Credit card
Business and government 83,398 – – (74) (123) 83,205 Business and government
Debt securities classified as loans 7,591 – – – – 7,591
Debt securities classified as loans
272,162 65,211 22 6,096 (273) 343,218
Allowance for loan losses (2,309) – – – – (2,309) Allowance for loan losses
Loans, net of allowance Loans, net of allowance
for loan losses 269,853 65,211 22 6,096 (273) 340,909 for loan losses
Other Other
Customers’ liability
Customers’ liability
under acceptances 7,757 – – – – 7,757
under acceptances
Investment in TD Ameritrade 5,485 – – (47) – 5,438
Investment in TD Ameritrade
Derivatives2 51,675 (220) – 15 (51,470) –
Goodwill 14,460 – (2,147) – – 12,313
Goodwill
Other intangibles 2,093 – (289) – – 1,804
Intangibles
Lands, buildings
Land, buildings and equipment,
and equipment 4,247 – 2 – – 4,249
and other depreciable assets
Current tax receivable – – – – 623 623
Current income tax receivable
Future income tax assets – 299 297 249 200 1,045
Deferred tax assets
Other assets 19,995 656 (829) (199) (2,722) 16,901
Other assets
105,712 735 (2,966) 18 (53,369) 50,130
Total assets $ 619,545 44,795 (2,723) 5,442 350 $ 667,409 Total assets
1 Refer to the notes following the IFRS opening Consolidated Balance Sheet for a
description of significant measurement and presentation differences between
Canadian GAAP and IFRS.
2 Certain comparative amounts have been reclassified to conform to the new IFRS
presentation adopted on transition date.