NIN 97/08 - Adoption of National Instrument 14-101 Definitions [NIN - Rescinded]
| Published Date: | 1997-02-28 |
|---|---|
| Effective Date: | 1997-02-27 |
National Instrument 14-101 provides a framework of defined terms that the Canadian Securities Administrators have agreed upon for use in national instruments. It sets out definitions of commonly used terms, definitions of terms necessary to provide local application of a national instrument and definitions of terms used in more than one national instrument although not used as frequently as some of the more general terms. The national instrument is expected to be amended from time to time to add definitions of new terms that meet any of these three criteria.
The Commission made the rule following publication on August 2, 1996 of a proposed rule and proposed consequential amendments to the Securities Rules and the subsequent review of written comments received during the comment period that expired November 4, 1996. The Commission summarized the written comments received in an advance notice of the rule and consequential amendments, which was published in the Weekly Summary of December 20, 1996.
National Instrument 14-101 has been approved as a rule in each of British Columbia, Alberta and Ontario, and is being adopted as a policy in each of the other jurisdictions, except Saskatchewan. In these jurisdictions, the national instrument will take effect on April 1, 1997. Once procedures are in place to enable the Saskatchewan Securities Commission to exercise its regulation making power, National Instrument 14-101 is expected to be adopted in Saskatchewan.
DATED at Vancouver, British Columbia, on February 26, 1997.
Douglas M. Hyndman
Chair
see hard copy for "Rule of the British Columbia Securities Commission" (1 page)
1. Section 1 of the Securities Rules, B.C. Reg. 479/95, is amended
(a) by repealing the definitions of "auditor", "Handbook", "public accountant" and "public accountant's report",
(b) by renumbering section 1 as section 1 (1), and
(c) by adding the following subsection:
(2) In a commission rule, including these rules:
2. Section 2 is repealed and the following substituted:"auditor" means a person that is qualified under section 3 (5) to make an auditor's report referred to in section 3 (4);
"auditor's report" means
(a) a Canadian auditor's report, or
(b) in the case of an issuer incorporated or organized in a jurisdiction other than Canada or a province of Canada
(i) a Canadian auditor's report, or
(ii) a foreign auditor's report, if the issuer complies with section 2 (1);
"Canadian auditor's report" means an auditor's report prepared in accordance with Canadian GAAS;
"Canadian GAAP" means generally accepted accounting principles determined with reference to the Handbook;
"Canadian GAAS" means generally accepted auditing standards determined with reference to the Handbook;
"Canadian public accountant's report" means a review engagement report or a notice to reader;
"foreign auditor's report" means, for an issuer that is incorporated or organized in a jurisdiction other than Canada or a province of Canada, an auditor's report that is required in the incorporating or organizing jurisdiction under the applicable legislation, and, subject to the requirements dealing with auditor's reports in such legislation, if a recommendation has been made by an association in the incorporating or organizing jurisdiction that is the equivalent of the Canadian Institute of Chartered Accountants, the report recommended by that equivalent association;
"foreign GAAP" means, for an issuer that is incorporated or organized in a jurisdiction other than Canada or a province of Canada, the generally accepted accounting principles that are required in the incorporating or organizing jurisdiction under the applicable legislation, and, subject to the requirements dealing with generally accepted accounting principles in such legislation, if a recommendation has been made by an association in the incorporating or organizing jurisdiction that is the equivalent of the Canadian Institute of Chartered Accountants, the principles recommended by that equivalent association;
"foreign GAAS" means, for an issuer that is incorporated or organized in a jurisdiction other than Canada or a province of Canada, the generally accepted auditing standards that are required in the incorporating or organizing jurisdiction under the applicable legislation, and, subject to the requirements dealing with generally accepted auditing standards in such legislation, if a recommendation has been made by an association in the incorporating or organizing jurisdiction that is the equivalent of the Canadian Institute of Chartered Accountants, the standards recommended by that equivalent association;
"foreign public accountant's report" means, for an issuer that is incorporated or organized in a jurisdiction other than Canada or a province of Canada, the public accountant's report that is equivalent to a Canadian public accountant's report and is required in the incorporating or organizing jurisdiction under the applicable legislation, and, subject to the requirements dealing with a public accountant's report in such legislation, if a recommendation has been made by an association in the incorporating or organizing jurisdiction that is the equivalent of the Canadian Institute of Chartered Accountants, the report recommended by that equivalent association;
"generally accepted accounting principles" means
(a) Canadian GAAP, or
(b) in the case of an issuer incorporated or organized in a jurisdiction other than Canada or a province of Canada
(i) Canadian GAAP, or
(ii) foreign GAAP, if the issuer complies with section 2 (1);
"generally accepted auditing standards" means
(a) Canadian GAAS, or
(b) in the case of an issuer incorporated or organized in a jurisdiction other than Canada or a province of Canada
(i) Canadian GAAS, or
(ii) foreign GAAS, if the issuer complies with section 2 (1);
"Handbook" means the Handbook of the Canadian Institute of Chartered Accountants, as amended from time to time;
"notice to reader" means a notice to reader prepared in accordance with the Handbook;
"public accountant" means a person that is qualified under section 3 (5) to make a public accountant's report;
"public accountant's report" means
(a) a Canadian public accountant's report, or
(b) in the case of an issuer incorporated or organized in a jurisdiction other than Canada or a province of Canada
(i) a Canadian public accountant's report, or
(ii) a foreign public accountant's report, if the issuer complies with section 2 (1);
"review engagement report" means a review engagement report prepared in accordance with the Handbook.
Foreign financial statements and reports
2. (1) Except for an issuer incorporated or organized under the laws of the United States of America or of a political division of the United States of America, an issuer that is incorporated or organized in a jurisdiction other than Canada or a province of Canada must, before filing any of the following, obtain the written consent of the executive director and comply with any conditions the executive director may impose:
(a) financial statements prepared in accordance with foreign GAAP;
(b) financial statements accompanied by a
(i) foreign auditor's report, or
(ii) foreign public accountant's report.
(2) If financial statements are prepared in accordance with foreign GAAP, the notes to the financial statements must state which accounting principles have been applied and explain and quantify any significant differences between the foreign GAAP and Canadian GAAP.
(3) If an audit is performed on an issuer's financial statements and the auditor's report on those financial statements is prepared in accordance with foreign GAAS, the auditor's report must explain any significant differences between the foreign GAAS and Canadian GAAS.
(4) If a public accountant performs the procedures necessary to issue a foreign public accountant's report on an issuer's financial statements, the public accountant's report must explain any significant differences between the procedures performed to issue the foreign public accountant's report and the procedures necessary to prepare a Canadian public accountant's report.