The Canadian Securities Administrators reports that amendments to National Instrument 44-101 Short Form Prospectus Distributions, which would allow firms to prepare their financials in accordance with other jurisdictions’ accounting rules, are up for ministerial approval.

On January 30, the CSA published for comment proposed amendments to short-form prospectus rules making the financial statement requirements of the rules consistent with the financial statement requirements in other rules regarding acceptable accounting principles, auditing standards and reporting currency.

The amendments have now been finalized and will be implemented or, subject to ministerial approval in certain jurisdictions are expected to be implemented, by each member of the CSA by Jan. 4, 2005.

The current rule requires all financial statements to be prepared using Canadian generally accepted accounting principles and audited using Canadian generally accepted auditing standards. However, a new rule which came into force on March 30, permits financial statements to be prepared using foreign generally accepted accounting principles and audited using foreign generally accepted auditing standards in certain circumstances. As a result, the short-form rules are being amended to conform with the new rule.