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Change In Accounting Policies
Information about the Fund’s changes in accounting policies is included in Note 3 of the 2008 Annual Consolidated Financial Statements.
Future Accounting Policy Changes
Accounting for the Effects of Rate Regulation
In August 2007, the Canadian Accounting Standards Board (AcSB) published its decision with respect to rate-regulated operations. The AcSB decided to retain much of the existing guidance related to rate-regulated operations; however, the exemption from the requirement to record future income taxes, as currently provided in CICA Handbook Section 3465 “Income Taxes” and the exemption from CICA Handbook Section 1100 “Generally Accepted Accounting Principles,” will be removed, effective January 1, 2009. The Fund will adopt these changes on January 1, 2009, and the principal effect will be the recognition of future income tax liabilities on the balance sheet, offset equally by regulatory assets.
International Financial Reporting Standards
The Canadian Accounting Standards Board confirmed in February 2008 that publicly accountable entities will be required to adopt International Financial Reporting Standards (IFRS) for interim and annual financial statements for periods beginning on January 1, 2011. The Manager of the Fund has established a project plan for implementing IFRS which includes determining:
- changes to accounting policies and implementation decisions;
- disclosure requirements;
- changes to information systems and accounting processes;
- changes to internal control over financial reporting and disclosure controls and procedures;
- training requirements; and
- external stakeholder communications.
The impact of the adoption of IFRS on the Fund’s financial reporting is not yet determinable.