Westjet 2010 Annual Report Download - page 46

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44 WestJet 2010 Annual Report
IFRS Steering Committee, to monitor the progress and critical
decisions in the transition to IFRS. The Steering Committee
consists of senior levels of management from Finance, Treasury
and Investor Relations, among others. An external advisor has
been engaged to work with our conversion project team to complete
the conversion. Additionally, we have engaged our external
auditors to review accounting policy determinations as they are
assessed by the project team. Regular reporting is provided by
the project team to senior management, the Steering Committee
and the Audit Committee of the Board of Directors.
We have an IFRS transition plan that includes a timetable for
assessing the impact on systems, internal controls over financial
reporting (ICFR) and business activities. Our IFRS conversion
project consists of three phases: Diagnostic, Solution Development,
and Implementation and Execution. We completed the Diagnostic
phase, which involved a high-level preliminary assessment of the
differences between Canadian GAAP and IFRS, and the potential
effects of IFRS to accounting and reporting processes, information
systems, business processes and external disclosures. This
assessment provided insight into the most significant differences
applicable to us. We have also completed the second phase,
Solution Development, which involved an in-depth analysis and
evaluation of the financial impact of various alternatives provided
for under IFRS; identification of effects on operational and business
processes, analysis of disclosure requirements, analysis of the
optional exemptions and mandatory exceptions of First-Time
Adoption of International Financial Reporting Standards (IFRS
1) for full retrospective application upon transition to IFRS; and
development of solutions to address the issues identified.
Phase three, Implementation and Execution, is substantially
complete. It involves the design and execution of changes
to information systems and business processes, completion
of formal authorization processes to approve recommended
accounting policy changes, training programs across the Finance
Department and other affected areas of the business, and
addressing opening IFRS balances for January 1, 2010. This phase
also involves the collection of financial information necessary to
prepare comparative IFRS financial statements and reconciliations
for 2011 for approval by the Audit Committee, and embedding
IFRS into day-to-day business processes.
Please see the table on page 45 for certain elements of our IFRS
transition plan and an assessment of progress towards achieving
these milestones. Given the progress of the project and outcomes
identified, we could change our intentions between the time of
communicating these key milestones and the changeover date.
Further, changes in regulation or economic conditions at the
date of the changeover or throughout the project could result in
changes to the transition plan being communicated here.