International Financial Reporting Standards (“IFRS”) Consultation (EB-2008-0408)

The Board initiated a consultation on December 23, 2008 to examine issues associated with the transition to International Financial Reporting Standards (“IFRS”). The consultation is being conducted under file number EB-2008-0408. The consultation builds on a series of planning meetings conducted by Board staff with industry participants in the fall of 2008 (EB-2008-0104, now completed, see link below).

As required by the Canadian Accounting Standards Board, Canadian Generally Accepted Accounting Principles for publicly accountable enterprises will transition to IFRS, effective January 1, 2011. It is expected that most utilities regulated by the Board will be required to adopt IFRS. The adoption of IFRS is expected to change the manner in which utilities perform their accounting and the reporting of financial results, and this may create impacts on distribution rates or other charges. The first phase of this consultation will examine and set regulatory policy regarding the transition to IFRS.

Quick Links

Policy Consultation, EB-2008-0408 - initiated January 2009
Planning Meetings, EB-2008-0104 - August-October 2008

Policy Consultation, EB-2008-0408

Board Report on Transition to IFRS:

Submissions from Participants:

Stakeholder Conference begins May 4, 2009:

Order of Presentations
Documents Filed in Preparation for Stakeholder Conference:
- Staff Proposal (posted April 24)
- Group of 8 Intervenors Proposals (posted April 28):
  - Guiding Principles
  - Proposed Regulatory Accounting Changes – Supporting Information
Presentations at the conference (posted as available):

Consultation Documents:

List of Participants (updated April 21, 2009)
Issues List for the Consultation
KPMG Report:
- Cover Letter
- KPMG Report: Report on the Transition to International Financial Reporting Standards
- Questions from participants:
  - Hydro One Networks Inc.
Costs:

Date	Issue / Document

Jul 28-09	The Board has issued its report on Transition to International Financial Reporting Standards (IFRS) in recognition of the fact that Canadian Generally Accepted Accounting Principles will transition to IFRS applicable to most utilities regulated by the Board effective January 1, 2011 Cover letter Report of the Board, Transition to International Financial Reporting Standards
May 14-09	The Board has issued a letter describing the procedure for filing written submissions. Written submissions are due Monday, May 25, 2009. Letter
Apr 24-09	Board Staff has posted proposals for discussion, based on the issues list for the IFRS consultation. These proposals were generated from discussions between Board Staff and participants, and have not been approved by the Board. The proposals are intended to serve as a starting point for discussions at the IFRS Stakeholder Conference, which begins May 4. Proposal
Apr 17-09	The Board has posted a letter advising participants of a meeting being held on Tuesday, April 21, 2009 for further discussions of Staff Proposals. Letter
Mar 27-09	The Board has posted a letter detailing information about the upcoming Discussion Forum and Conference for the IFRS Consultation. Letter
Mar 9-09	Information Item: In February 2009, the Alberta Utilities Commission published Bulletin 2009-10, which invited comments on Draft IFRS Procedures. The Draft Procedures address some of the same issues as the OEB IFRS Consultation, and may be of interest to participants. Please see the link below for this document. http://www.auc.ab.ca/items-of-interest/ifrs/Pages/default.aspx
Mar 5-09	The Board today released a report from its consultants KPMG entitled “KPMG Report to the Ontario Energy Board: Report on the Transition to International Financial Reporting Standards”. The report provides independent analysis of the matters identified in the Issues List for the Board’s Consultation on IFRS, and highlights the major potential impacts of the transition to IFRS from the perspectives of ratepayers, regulated utilities and the ratemaking process. Cover Letter KPMG Report to the Ontario Energy Board: Report on the Transition to International Financial Reporting Standards Letter: Invitation to Q & A with KPMG
Jan 23-09	Issues Meeting, January 27, 2009 Board Staff Draft Issues List (posted January 20, 2009) Comments on Staff Draft Issues List: Hydro One Networks Inc. OPG Cover Letter OPG Comments Staff presentation at Issues Meeting Board Staff List Draft 2 (distributed February 3)
Jan 23-09	Information Item: On January 19, 2009 the Canadian Association of Members of Public Utility Tribunals (“CAMPUT”) sent a letter to the International Accounting Standards Board (“IASB”). This letter responded to the IASB request for comments on its exposure draft – Additional Exemptions for First-Time Adopters. CAMPUT’s position in this letter is to inform policy development at the IASB. The letter comments on the IASB proposal to permit the use of historical cost in certain circumstances as the opening value for property, plant and equipment at the date of adopting IFRS. Letter
Dec 23-08	The Board’s letter dated December 23, 2008 invites participation from all interested stakeholders Letter

Planning Meetings, EB-2008-0104

Contact

For further information regarding the Policy Consultation on International Financial Reporting Standards, please contact Jennifer Lea by e-mail at jennifer.lea@oeb.gov.on.ca. The Board’s toll-free number is 1-888-632-6273.