Financial Statements

A reporting issuer must file annual financial statements prepared in compliance with Canadian generally accepted accounting principles, with comparative figures, if applicable, which must be accompanied by an auditors’ report. The annual financial statements and auditors’ report must be filed with the relevant securities commission within 90 days of year end for non-venture issuers and within 120 days for venture issuers.

A reporting issuer must also file interim financial statements. The interim financial statements must include a balance sheet as at the end of the interim period and a balance sheet as at the end of the immediately preceding fiscal period, income and cash flow statements for the most recently completed three month period and year-to-date results, with comparative figures, and notes. The interim financial statements are due within 45 days of the interim period for non-venture issuers and within 60 days for venture issuers. For many companies, the Audit Committee will require that auditors to perform an interim review of these financial statements. If an auditor has not performed a review, the interim financial statements must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

Both the interim and annual financial statements must be approved by the Board of Directors. The Board may delegate this responsibility to the Audit Committee.