Future Changes in Accounting Policies
Conversion to International Financial Reporting Standards
On February 13, 2008, the Accounting Standards Board announced that publicly accountable entities will be required to prepare financial statements in accordance with International Financial Reporting Standards ("IFRS") for interim and annual financial statements for fiscal years beginning on or after January 1, 2011. Implementation of an IFRS conversion plan, which was developed in 2008, has begun and key finance personnel have undergone in-depth training regarding significant IFRS-GAAP differences, particularly as they relate to the mining industry.
To date, Northgate has performed an analysis of the significant IFRS-GAAP differences with respect to the financial statements and disclosures. In 2009, Northgate will continue to identify and quantify the potential effect of these differences. An assessment of the impact of the conversion on Northgate's information technology systems, ICFR, DCP and business activities will be undertaken in 2009 and updates on the progress of and changes to the conversion plan will be reported throughout the year. By the end of 2009, Northgate will provide disclosure on major identified differences between current accounting policies and the changes anticipated to prepare IFRS financial statements.
Goodwill and Intangible Assets
In February 2008, the Canadian Institute of Chartered Accountants ("CICA") issued section 3064, Goodwill and Intangible Assets, which replaces Section 3062, Goodwill and Other Intangible Assets and Section 3450, Research and Development Costs. The new section establishes standards for the recognition, measurement and disclosure of goodwill and intangible assets and harmonizes this standard with IFRS IAS 38, Intangible Assets. Concurrent with the introduction of this standard, the CICA withdrew EIC 27, Revenues and Expenses during the pre-operating period. As a result of the withdrawal, entities will no longer be able to defer certain costs and revenues incurred and earned prior to commercial production at new mine operations. The new requirements are effective on January 1, 2009, but are not expected to have a material impact on Northgate's consolidated financial statements.