Securities Law

BCN 2004/40 - National Instrument 51-102 Continuous Disclosure Obligations - Definition of “interim period” [BCN - Lapsed]

Published Date: 2004-10-22
Rescinded Date: 2012-07-03

Under National Instrument 51-102 Continuous Disclosure Obligations (NI 51-102), which came into effect on March 30, 2004, issuers must file interim financial statements for each interim period.

The definition of interim period in NI 51-102 refers to periods ending 3, 6, 9 and 12 months before or after the end of an issuer’s financial year. “Month” is not defined in NI 51-102.

In some jurisdictions the Interpretation Act has a definition of “month” that applies to NI 51-102. British Columbia’s Interpretation Act defines month based on calendar months so, for example, it would mean the period from January 1 to January 31, or from January 15 to February 14.

Some issuers have financial years that are not the same length as a calendar year. For example, an issuer’s financial year may be based on weeks. In these situations, the issuer’s interim periods do not end 3, 6, 9 or 12 months before or after the end of the issuer’s financial year. As a result, the issuer is not able to comply with the requirement in NI 51-102 that it file interim financial statements for the defined interim periods.

To accommodate issuers that have “non-standard” financial years, that is, financial years that are not 365 or 366 days in length, we are issuing BC Instrument 51-508 Exemption for interim periods in non-standard financial years. This instrument does not apply to financial years in which an issuer has changed its financial year-end, unless the new financial year will be a non-standard year.

Similar instruments are being issued in Manitoba and Saskatchewan. Staff of the commissions in each of Alberta, Ontario, Québec, Nova Scotia, Newfoundland and Labrador, New Brunswick, Prince Edward Island, and Nunavut have confirmed that a similar exemption is not necessary in their jurisdictions for various reasons. In those jurisdictions, issuers with non-standard financial years do not require exemptive relief.

Questions
You may refer questions to:

Rosann Youck
Senior Legal Counsel
Legal Services, Corporate Finance
British Columbia Securities Commission
(604) 899-6656
(800) 373-6393 (in B.C. and Alberta)
ryouck@bcsc.bc.ca

Mike Moretto
Manager
Corporate Finance
British Columbia Securities Commission
(604) 899-6767
(800) 373-6393 (in B.C. and Alberta)
mmoretto@bcsc.bc.ca

 

October 22, 2004

 

Douglas M. Hyndman
Chair

 

Ref: National Instrument 51-102 Continuous Disclosure Obligations
BC Instrument 51-508 Definition of interim period

 

This Notice may refer to other documents. These documents can be found at the B.C. Securities Commission public website at www.bcsc.bc.ca in the Commission Documents database or the Historical Documents database.