The Canadian Securities Administrators (CSA) has published CSA Notice and Request for Comment – Proposed Amendments to National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure (the Proposed Amendments) for a comment period ending February 11, 2026.
The Proposed Amendments primarily seek to ensure that measures that have historically been subject to the requirements of NI 52-112 remain subject to its requirements following the adoption of a new International Financial Reporting Standards (IFRS) Accounting Standard, IFRS 18 Presentation and Disclosure in Financial Statements.
IFRS 18 will be effective for annual reporting periods beginning on or after January 1, 2027. It requires disclosure of management-defined performance measures in a single note to the financial statements. Without the Proposed Amendments, these measures, which have historically been considered non-GAAP financial measures, would not be subject to the disclosure requirements in NI 52-112 when disclosed outside of the financial statements.
The Proposed Amendments would introduce a prominence requirement when an additional subtotal is disclosed outside the financial statements. This would promote connectivity with IFRS 18, which requires an additional subtotal presented on the face of a primary financial statement, such as the statement of profit or loss, to be displayed no more prominently than the totals and subtotals required by IFRS Accounting Standards.
(CSA Notice and Request for Comment – Proposed Amendments to National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure) is available for download from the websites of the participating jurisdictions.
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
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