The Ontario Securities Commission (OSC) has granted Ontario Power Generation Inc. (the Filer) an exemption from the requirement to prepare financial statements in accordance with Canadian Generally Accepted Accounting Principles (GAAP) for publicly accountable enterprises. Instead, the Filer is permitted to use U.S. GAAP for its financial statements. This exemption is based on the Filer’s involvement in rate-regulated activities and the fact that it is not an SEC issuer, which would otherwise allow it to use U.S. GAAP under section 3.7 of National Instrument 52-107.
The exemption replaces a previous relief granted in 2018, which was set to expire no later than January 1, 2024, or upon the International Accounting Standards Board (IASB) mandating a specific standard for entities with rate-regulated activities. Since the IASB has not yet finalized such a standard, the Filer requires more time to transition to IFRS if necessary.
The granted exemption will remain in effect until the earliest of January 1, 2027; the day after the Filer ceases rate-regulated activities; or two years after the IASB publishes a final Mandatory Rate-regulated Standard, should it come into effect. The decision is applicable in Ontario and is automatically effective in other Canadian jurisdictions that are part of the Passport System.