Acts and Regulations

2010-92 - Disclosure Document

Section 7
Disposition versions

Full text
Financial statements
7(1)Subject to section 8, every disclosure document shall contain financial statements of the franchisor that are prepared in accordance with the generally accepted accounting principles of the jurisdiction in which the franchisor is based and that meet the other requirements of this section.
7(2)The financial statements must be either
(a) audited in accordance with the generally accepted auditing standards set out in the Canadian Institute of Chartered Accountants Handbook, or
(b) reviewed in accordance with the review and reporting standards applicable to review engagements set out in the Canadian Institute of Chartered Accountants Handbook.
7(3)The auditing standards and the review and reporting standards of other jurisdictions that are at least equivalent to those referred to in subsection (2) are acceptable.
7(4)Subject to subsections (5) and (6), the financial statements must be for the most recently completed fiscal year.
7(5)If 180 days have not yet passed since the end of the most recently completed fiscal year and the financial statements for that fiscal year have not been prepared and reported on, the disclosure document shall contain the financial statements for the previous fiscal year.
7(6)If a franchisor has operated for less than one fiscal year or if 180 days have not yet passed since the end of the first fiscal year of operations and the financial statements for that fiscal year have not been prepared and reported on, the disclosure document shall contain the opening balance sheet for the franchisor.
Financial statements
7(1)Subject to section 8, every disclosure document shall contain financial statements of the franchisor that are prepared in accordance with the generally accepted accounting principles of the jurisdiction in which the franchisor is based and that meet the other requirements of this section.
7(2)The financial statements must be either
(a) audited in accordance with the generally accepted auditing standards set out in the Canadian Institute of Chartered Accountants Handbook, or
(b) reviewed in accordance with the review and reporting standards applicable to review engagements set out in the Canadian Institute of Chartered Accountants Handbook.
7(3)The auditing standards and the review and reporting standards of other jurisdictions that are at least equivalent to those referred to in subsection (2) are acceptable.
7(4)Subject to subsections (5) and (6), the financial statements must be for the most recently completed fiscal year.
7(5)If 180 days have not yet passed since the end of the most recently completed fiscal year and the financial statements for that fiscal year have not been prepared and reported on, the disclosure document shall contain the financial statements for the previous fiscal year.
7(6)If a franchisor has operated for less than one fiscal year or if 180 days have not yet passed since the end of the first fiscal year of operations and the financial statements for that fiscal year have not been prepared and reported on, the disclosure document shall contain the opening balance sheet for the franchisor.