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TD BANK GROUP ANNUAL REPORT 2011 MANAGEMENT’S DISCUSSION AND ANALYSIS82
KEY ACTIVITIES AND MILESTONES RELATED PHASE STATUS
4. Financial Reporting and IFRS Expertise
• Staff the program with an appropriate level
of IFRS financial reporting expertise and
project management experience.
• Provide IFRS training to key finance and opera-
tional staff, including business process owners.
• Provide education to management, Steering
Committee, and Audit Committee regarding
IFRS implications.
Detailed Assessment;
Design and Solution
Development
• All milestones have been completed.
• A project team consisting of IFRS subject matter experts, finance
and operational staff and project managers have been engaged.
• IFRS training has been provided to key internal stakeholders and
continues to be provided as required.
• Launch a finance-wide IFRS training program. Design and Solution
Development
• Finance-wide professional development training sessions on
technical IFRS topics continue to be provided. The Bank has
also held regular IFRS information sessions with members of
the Steering Committee, Audit Committee, senior executives,
and certain stakeholders.
• Guidance on specific issues has been provided to impacted
finance and operational personnel.
5. Business Impacts
• Identify significant business impacts of the
transition to IFRS, including forecasting
processes, compensation arrangements, regu-
latory capital, hedging activities, and other
material contracts.
Detailed Assessment;
Implementation
• The Bank has layered in expected IFRS impacts into its forecast-
ing and capital processes.
• Significant impacts to the Bank’s compensation arrangements
are not anticipated.
• Process and system changes have been completed to address
changes to the Bank’s hedging activities, largely due to
the impact of securitized assets that no longer qualify for
derecognition under IFRS.
• Identify the impacts of IFRS on the Bank’s
external clients adopting IFRS, and the
impact to their financial statements and
loan covenants.
• The Bank has reviewed disclosures and other available informa-
tion related to changes in financial statements of external clients,
who have adopted IFRS, and assessed the potential impact on
the Bank’s lending practices. The Bank has not many any signifi-
cant changes to its lending practices as a result of the Bank’s
external clients adopting IFRS.
6. Information Technology
• Identify changes required to information
technology systems and design processes
to prepare an IFRS opening Consolidated
Balance Sheet.
• Determine a solution for capturing financial
information under Canadian GAAP and IFRS
during fiscal 2011.
• Design, develop and test related process
and technology changes.
Detailed Assessment;
Design and Solution
Development
• A process to capture financial information under Canadian GAAP
and IFRS during fiscal 2011 was established.
• A reporting environment was implemented to track all transition
adjustments from Canadian GAAP to IFRS and to produce the
IFRS opening Consolidated Balance Sheet, fiscal 2011 compara-
tives, related transitional reconciliations and note disclosures.
• Test other new processes and information
technology.
Implementation • Testing of new processes and technology changes has been
carried out.
7. Control Activities: ICFR and DC&P; Including Investor Relations and Communications Plans
• Identify and update changes in internal
controls based on required process and
technology changes.
• For all significant changes to policies and
procedures identified, assess effectiveness
of ICFR and DC&P and implement any
necessary changes.
• Design and implement internal controls
over the IFRS transition process.
Design and Solution
Development;
Implementation
• Stakeholders have been involved in the design, implementation,
and assessment of the operating effectiveness of controls and
procedures for both the IFRS transition process and other changes
that will have an on-going impact, as a result of transition.
• Design a communication plan to convey
impacts of the transition to IFRS to external
stakeholders.
• The Bank has its communication plan in place regarding
the anticipated effects of IFRS transition to certain external
stakeholders.
• Communicate impact of the IFRS transition
to external stakeholders.
• Communication will continue to be made with further detail
being provided as key accounting policy and implementation
decisions are finalized.