Notes to the Financial Statements
38. The financial statements of a corporation must disclose the following matters where they arise, and disclosure may be made by way of notes to the financial statements: 1. A description of all significant accounting policies adopted by the corporation. 2. Particulars of any change in accounting principles or practice or in the method of applying any accounting principle or practice made during the period that affects the comparability of any of the statements with any of those of the preceding period, and the effect of any such change upon the income or loss for the period. 3. Contractual obligations and commitments by corporation to make expenditures that are abnormal in relation to the corporation’s financial position or usual business operations. 3.1 Contractual obligations in respect of guarantees, letters of credit, endorsements, acceptances or other similar obligations not recorded on the balance sheet. 4. Contractual obligations in respect of long term operating leases including, in the period in which a transaction is effected, the principal details of any sale and lease-back transaction. 5. Contingent liabilities and other obligations that might involve losses not provided for in the accounts, stating their nature and an estimate of the amount of the contingent loss, or a statement that an estimate cannot be made, and whether any settlement resulting from the resolution of the contingency is expected to be accounted for as a prior period adjustment or as a charge to profit and loss in the period in which the settlement occurs. 6. If the corporation has contracted to issue shares or has given an option, right or warrant to purchase shares, the class and number of shares affected, the price and the date of issue of the shares or exercise of the option or like instrument. 7. The amount of the corporation’s unfunded obligation for its employees’ pension fund indicating the manner in which the corporation proposes to satisfy the obligation. 8. Any event or transaction occurring between the date of the financial statements and the date of their completion that does not relate to conditions that existed at the date of the financial statements, but results in significant changes to assets or liabilities in the subsequent period or is likely to or may have a significant effect on future operations of the corporation. 9. The amount of any loans made contrary to Part IX of the Act at any time during the period to individuals or bodies corporate, or investments made in bodies corporate, contrary to Part IX of the Act. 10. The basis of translation of amounts from currencies other than the currency in which the financial statements are expressed together with the accounting treatment used for any unrealized gains or losses related thereto. 11. Foreign currency restrictions that affect the assets of the corporation. 12. Any liability secured on any asset of the corporation, stating the nature and amount of the encumbrance on each asset and identifying the lender if the lender is an affiliate. 13. Any default by the corporation in principal, interest, sinking fund or redemption provisions with respect to any issue of its debt obligations. 14. The amount of arrears of dividends on any class of shares and the date to which the dividends were last paid. 15. Any restriction in the articles or by-laws of the corporation or by contract on the payment of dividends. 16. Particulars, in summary form, of amounts recorded in the financial statements as contributed surplus. 17. If the corporation is a trust corporation, particulars, in summary form, of those assets held in trust, earmarked and set aside with respect to money received for guaranteed investment. 18. Particulars for reconciling the effective income tax rate with the statutory income tax rate. 19. Information segmenting the corporation’s total operations by country and by profit centre function. 20. Details of any economic dependency of the corporation on a person because the corporation is conducting a significant volume of business with the person, and separately, details of any circumstance that might call into question the future viability of the corporation. 21. Details of all transactions entered into with any related parties including a description of the nature and extent of the transaction, a description of the nature of the relationship, amounts due to or from related parties and a description of all such transactions that constitute contraventions of the Act. 22. Details with respect to the method used to account for any amalgamations or business combinations, the net assets purchased or acquired in the business combination, the consideration given and other pertinent information. 23. Details with respect to any prior period adjustment, including a description of the adjustment and its effect on current and prior periods. 24. Details, by major asset class, of the aggregate carrying value of loans that were subject to troubled loan refinancing or restructuring during the period. 25. Details, by major asset class, of provisions for known, probable and possible losses stated in the form of a continuity schedule showing opening balances, changes during the period and closing balances. R.R.O. 1990, Reg. 733, s. 38; O. Reg. 413/97, s. 6. PART VII   CAPITAL BASE