TD Bank 2014 Annual Report Download - page 143

TD BANK GROUP ANNUAL REPORT 2014 FINANCIAL RESULTS 141
The Bank estimates the impact of adopting the IAS 32 amendments
will result in an increase in total assets and total liabilities of approxi-
mately $11 billion and $16 billion as at November 1, 2013, the
transition date, and October 31, 2014, respectively. There will be no
impact to opening equity, cash flows, or earnings of the Bank.
Levies
In May 2013, the IFRS Interpretations Committee (IFRIC), with the
approval of the IASB, issued IFRIC 21, Levies (IFRIC 21). IFRIC 21
provides guidance on when to recognize a liability to pay a levy
imposed by government, which is accounted for in accordance with
IAS 37, Provisions, Contingent Liabilities and Contingent Assets.
IFRIC 21 is effective for annual periods beginning on or after
January 1, 2014, which will be November 1, 2014, for the Bank,
and is to be applied retrospectively.
IFRIC 21 is expected to change the pattern and timing of recognition
of certain levies paid by the Bank, in that it requires the obligation for
these levies to be recognized at specific points in time in accordance
with their applicable legislation. This change in timing of recognition is
not expected to have a material impact on the financial position, cash
flows, or earnings of the Bank on an annual basis.
FUTURE CHANGES IN ACCOUNTING POLICIES
The IASB continues to make changes to IFRS to improve the overall
quality of financial reporting. The Bank is actively monitoring all of the
IASB’s projects that are relevant to the Bank’s financial reporting and
accounting policies.
The following standards have been issued, but are not yet effective on
the date of issuance of the Bank’s Consolidated Financial Statements.
The Bank is currently assessing the impact of the application of these
standards on the Consolidated Financial Statements and will adopt
these standards when they become effective.
Presentation – Offsetting Financial Assets and
Financial Liabilities
In December 2011, the IASB issued amendments to IAS 32, Financial
Instruments: Presentation, (the IAS 32 amendments) which clarified
the existing requirements for offsetting financial assets and financial
liabilities. These amendments are effective for annual periods begin-
ning on or after January 1, 2014, which will be November 1, 2014, for
the Bank. The Bank expects that certain bilateral transactions related
to reverse repurchase and repurchase agreements, and amounts
receivable from or payable to brokers, dealers, and clients will no
longer qualify for offsetting under the new guidance.
Summary of Impact upon Adoption of New and
Amended Standards
The following table summarizes the impact upon adoption of the new
and amended standards.
Impact Upon Adoption of New and Amended Standards
(millions of Canadian dollars) As at
October 31, 2013
Previously IAS 19 IFRS 10 & 11 Total Amount after
reported adjustment adjustment adjustments adjustments
ASSETS
Interest-bearing deposits with banks $ 28,855 $ – $ (272) $ (272) $ 28,583
Trading loans, securities, and other 101,928 – 12 12 101,940
Available-for-sale securities 79,541 – 3 3 79,544
Goodwill 13,297 – (4) (4) 13,293
Deferred tax assets 1,588 212 – 212 1,800
Other assets 9,990 (450) (12) (462) 9,528
235,199 (238) (273) (511) 234,688
LIABILITIES
Deposits – Personal 319,749 – (281) (281) 319,468
Deposits – Business and government 203,204 – 1,784 1,784 204,988
Amounts payable to brokers, dealers and clients 8,908 – (26) (26) 8,882
Other liabilities 14,553 346 (4) 342 14,895
Liability for capital trust securities 1,740 – (1,740) (1,740) –
548,154 346 (267) 79 548,233
EQUITY
Retained earnings 24,565 (578) (5) (583) 23,982
Accumulated other comprehensive income (loss) 3,166 (6) (1) (7) 3,159
$ 27,731 $ (584) $ (6) $ (590) $ 27,141
For the year ended October 31, 2013
Net income after tax and equity in associate $ 6,662 $ (22) $ – $ (22) $ 6,640
For the year ended October 31, 2012
Net income after tax and equity in associate $ 6,471 $ (11) $ – $ (11) $ 6,460