RECONCILIATION OF IFRS DISCLOSURE TO US GAAP DISCLOSURE
|6 Months Ended|
Feb. 29, 2020
|Reconciliation of Ifrs Disclosure to UsGaap Disclosure [Abstract]|
|RECONCILIATION OF IFRS DISCLOSURE TO US GAAP DISCLOSURE||
The Company's primary listing is on the TSX Venture Exchange ("TSXV"). The consolidated financial statements filed on that exchange are now filed in terms of US GAAP. Previously the consolidated financial statements were filed in terms of International Financial Reporting Standards ("IFRS").
The Company’s comparative consolidated financial statements were prepared using US GAAP, therefore a reconciliation of the comparative IFRS and US GAAP presentation was performed for the comparative period.
The main differences between IFRS and US GAAP are as follows:
The Company granted certain directors, officers and consultants of the Company share purchase options with vesting terms attached thereto, 25% vested immediately and a further 25%, per annum will vest on the grant date of the share purchase options. These share purchase options were valued using a Black Scholes valuation model utilizing the assumptions as disclosed in note 16 above.
Under IFRS share-based compensation paid to certain directors, consultants and employees were amortized over the vesting period of the option grant using a weighted average expense over the vesting period, including the immediately vesting share purchase options.
Under US GAAP, the share purchase options issued to consultants were expensed immediately and the share purchase options issued to directors and officers were amortized as follows; (i) the value of the twenty five percent of the options that vested immediately were expensed immediately; (ii) the remaining value of the seventy five percent of the options which vest equally on an annual basis are being expensed over the vesting period on a straight line basis.
The difference in treatment between IFRS and US GAAP gave rise to a reversal of expense of $248,912 and $497,824 for the three months and six months ended February 28, 2019, respectively. There was no impact on the prior periods as all options issued during that period vested immediately and were accordingly expensed immediately.
Debt issue costs
The Company settled certain commitment fees and finders fees related to the issue of convertible notes by the issue of common shares valued at $1,276,980. Under IFRS, these debt issue costs were originally expensed in the three month period ended November 30, 2018 and subsequently recorded as a prepaid commitment fee in the six month period ended February 28, 2019. Under IFRS this commitment fee is not directly linked to the convertible debt and is amortized on a straight line basis over the commitment period.
In terms of US GAAP, the commitment fee and finder's fee is regarded as directly related to the debt and is recorded as a debt discount which is amortized over the life of the debt, including any accelerated amortization due to repayment or early settlement of the debt.
The difference in treatment between IFRS and USGAAP gave rise to an additional expense of $1,190,132, including the reversal of debt issue costs of $1,276,980 under IFRS, and $95,694 for the three and six months ended February 28, 2019, respectively.
The entire disclosure of reconciliation of IFRS Disclosure to US GAAP disclosure.
No definition available.