Westjet 2010 Annual Report Download - page 47

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WestJet 2010 Annual Report 45
Key activity Key milestones Status
Financial statement preparation
• Identify differences in Canadian GAAP/IFRS
accounting policies
• Select ongoing IFRS policies
• Select IFRS 1 choices
• Develop fi nancial statement format
• Quantify effects of change in initial
IFRS disclosure and 2010 comparative
fi nancial statements
Senior management and Steering
Committee sign-off for all key IFRS
accounting policy choices to occur
in early 2010.
Development of draft fi nancial
statement format to occur during
the fi rst half of 2010.
Completed the IFRS Diagnostic phase during
2008, which involved a high-level review of the
major differences between Canadian GAAP and
IFRS.
The Solution Development phase is complete,
and the Implementation and Execution phase is
substantially complete, as previously discussed.
Our preliminary assessment of the impact of
the changeover to IFRS on fi nancial results is
disclosed in this MD&A.
Our external auditors have carried out certain
initial audit procedures on the IFRS opening
balance sheet, and have started their review
of the IFRS 2010 quarterly impacts.
Training
Defi ne and introduce appropriate level of IFRS
expertise for each of the following:
• Finance Department
• Audit Committee
Training for the Finance Department
throughout 2010.
Regular Audit Committee updates
are provided once per quarter.
Project team expert resources and our external
advisor were identifi ed to provide insights and
training. Training for project team members is
occurring throughout the project, and a detailed
training plan created for the Finance Department
was delivered in 2010. Additional ongoing
training for the Finance Department and other
departments will be delivered as needed.
Information technology (IT) infrastructure
Confi rm that business processes and systems
are IFRS compliant, including:
• Program upgrades (including any interfaces)
and changes
• Gathering data for disclosures
Confi rm that systems can address
2010 dual reporting requirements
in the fourth quarter of 2009.
Confi rm that business processes and
systems are IFRS compliant throughout
the project.
IT proof of concept for dual reporting during
2010 has been completed, and testing and
implementation occurred throughout 2010.
We are confi dent that there are no signifi cant
IT issues that cannot be addressed by our
current systems.
We continue to work with affected business units to
address business process and IT changes required
to embed IFRS into day-to-day processes.
Control environment
• For all accounting policy changes
identifi ed, assess control design and
effectiveness implications
• Implement appropriate changes
All key IFRS control design and
effectiveness implications to be
assessed as part of the key IFRS
differences and accounting policy
choices through to the end of 2010.
New control requirements have been developed
for the opening balance sheet, dual reporting
period and the maintenance of IFRS after
the changeover date. The internal audit team
is currently performing testing of these
identifi ed controls.
External communications
Assess the effects of key IFRS-related accounting
policy and fi nancial statement changes on
external communications, in particular:
• Confi rm 2011 investor communications
are IFRS compliant regarding guidance
and fi nancial impact
• Monitor external communications package
• Confi rm investor relations process can
respond to IFRS-related queries
Analyze and publish the effect of
IFRS on the fi nancial statements
throughout the project.
IFRS disclosure will be updated throughout
the project.
Investor Relations is represented on the IFRS
Steering Committee. An investor relations
communications strategy has been formulated,
and includes a strategy to analyze effects
on management and employee compensation
arrangements and plans, and the related
communications necessary if changes are required.