Disclosures

An overview of the financial accounting standards for financial instruments and derivatives disclosures are outlined below for companies that follow International, US, or Canadian accounting standards. For a more complete and detailed description of each standard, it is recommended to visit the respective issuer's website.

	IFRS 7	FAS 161	CICA 3862
Title	Financial Instruments: Disclosures	Disclosures about Derivatives and Hedging	Financial Instruments – Disclosures
Issuer	International Accounting Standards Board (IASB)	Financial Accounting Standards Board (FASB)	Canadian Institute of Chartered Accountants (CICA)
Region	International	USA	Canada
Effective	January 1, 2007	November 15, 2008	October 1, 2007
Overview	IFRS 7 is intended to enhance the disclosure of risks arising from financial instruments and provide greater transparency regarding the monitoring of measurement and management of financial risk. Some key areas: Sensitivity analysis the company must run an analysis on their positions to see what would happen if markets changes (interest rates, FX rates, etc.) Reporting – the accounting function must report all quantitative data that management uses in making decisions.	FAS 161 requires enhanced disclosures about an entity’s derivative and hedging activities, thereby improving the transparency of financial reporting. Specifically: How and why an entity uses derivatives instruments. How derivative instruments and related hedged items are accounted for under FAS 133 and its related interpretations. How derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows.	The disclosure requirements of CICA Section 3862 and IFRS 7 are similar (i.e. they are converged), except in a few circumstances. CICA Section 3862 requires more specific disclosures about hedging transactions.
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We hope that such information will assist you, but it should not be used or relied upon as a substitute for your own independent research. For a more comprehensive view of the standards/requirements, please visit the respective issuer's website.