TD Bank 2011 Annual Report Download - page 155

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TD BANK GROUP ANNUAL REPORT 2011 FINANCIAL RESULTS 153
k) Securities Classified as Available-for-Sale: Other Differences
between Canadian GAAP and IFRS
Under Canadian GAAP, equity securities that are classified as available-
for-sale and do not have a quoted market price are recorded at cost.
Under IFRS, these equity securities are recorded at fair value when
there is a reliable fair value.
T
he impact of this difference to the Bank’s IFRS opening Consolidated
Balance Sheet as at November 1, 2010 was an increase to the available-
for-sale securities of $128 million, an increase to deferred tax liabilities
of $38 million, and an increase to opening equity of $90 million. The
total impact to the Bank’s opening equity comprised of an increase to
accumulated other comprehensive income of $90 million and no
impact to retained earnings.
l) Other: Other Differences between Canadian GAAP and IFRS
Other IFRS differences relate primarily to the accounting of foreign
exchange for equity method investments and for AFS securities.
The total impact to the Bank’s opening IFRS equity was a decrease
of $34 million, comprised of an increase to retained earnings of
$11 million, and a decrease to accumulated other comprehensive
income of $45 million.
m) Summary of Key Financial Statement Presentation
Differences between Canadian GAAP and IFRS
Reclassification of Non-controlling Interests in Subsidiaries
Under Canadian GAAP, non-controlling interests in subsidiaries was
presented above shareholders’ equity. Under IFRS, non-controlling
interests in subsidiaries is classified as a component of equity, but is
presented separately from the Bank’s shareholder’s equity.
The impact of this presentation change to the Bank’s Consolidated
Balance Sheet as at November 1, 2010 was a decrease to non-controlling
interests in subsidiaries of $1,493 million and an increase to equity –
non-controlling interests in subsidiaries of $1,493 million.
Reclassification of Provisions
Under Canadian GAAP, provisions related to contingent liabilities were
recognized within other liabilities within the Bank’ s Canadian GAAP
Consoldiated Balance Sheet. Under IFRS, provisions related to contingent
liabilities have been reclassified to a separate line within the Bank’s
opening IFRS Consolidated Balance Sheet.
SUBSEQUENT EVENT
NOTE 35
Acquisition of Credit Card Portfolio of MBNA Canada
On or about December 1, 2011, the Bank is expected to complete the
acquisition of substantially all of the credit card portfolio of MBNA
Canada, a wholly-owned subsidiary of Bank of America Corporation,
as well as certain other assets and liabilities. At closing, the Bank will
pay a premium of approximately $75 million on the portfolio, which
is expected to total approximately $7.8 billion at December 1, 2011.
The acquisition will be accounted for by the purchase method.