Pursuant to the NCIB, Granite GP proposes to purchase through the facilities of the TSX and any alternative trading system in Canada, from time to time over the next 12 months, if considered advisable, up to an aggregate of 6,566,292 of Granite’s issued and outstanding stapled units (the “ Stapled Units”) (each Stapled Unit consisting of one trust unit of Granite REIT and one common share of Granite GP), being approximately 10% of Granite’s public float of Stapled Units as of May 12, 2022. (TSX: GRT.UN / NYSE: GRP.U) (“ Granite REIT” and “ Granite GP”, and collectively, “ Granite”) today announced the acceptance by the Toronto Stock Exchange (the “ TSX”) of Granite GP’s Notice of Intention to Make a Normal Course Issuer Bid (“ NCIB”). The ASIC press release indicates that ASIC may review its position "if the IFRS Interpretations Committee decides not to address the matter".įurther information, including access to the class orders, is available on the ASIC website.TORONTO, Ontario-( BUSINESS WIRE)- Granite Real Estate Investment Trust and Granite REIT Inc. The agenda paper on the issue (link to the IASB website) contains a staff recommendation that the issue not be added to the Committee's agenda as "significant diversity in practice does not exist and is not expected to emerge in the future". The IFRS Interpretations Committee is meeting on 29–30 January 2014, and this matter is currently included on the agenda for the meeting. Under a new accounting standard on consolidation accounting, it is not clear that stapled entities would be permitted to prepare consolidated financial statements in the absence of the class order. Transactions between the entities are eliminated in preparing consolidated or combined financial statements. The ASIC press release (link to ASIC website) notifying the amended Class Orders notes the following issues in relation to the treatment of stapling arrangements under the Australian equivalents to IFRS 3 and IFRS 10:Ĭonsolidated or combined financial statements provide useful and meaning information on investors’ interest in the overall stapled arrangement, and may be necessary to give a true and fair view of the individual entity financial reports. However, these class order amendments do not implement these proposals, but instead extend earlier interim relief given to stapled entities, pending further consideration of reporting requirements by the IFRS Interpretations Committee. Australian equivalents to International Financial Reporting Standards (IFRS), as made by the Australian Accounting Standards Board (AASB), are legal instruments under Australian law, and accordingly ASIC is able to provide relief and modifications of reporting requirements using a class order.ĪSIC had previously issued a Consultation Paper on stapled arrangements and included proposals for a class order would have the effect of removing any legal impediment under the Act from an entity presenting combined financial statements in the financial report of a stapled entity. Under Australia's Corporations Act 2001, ASIC has the power to issue a 'class order' that effectively changes the operation of the law for a particular class of entity. Generally, the stapling arrangement can only be terminated if it becomes unlawful or by a super majority vote of the stapled security holders. The stapling results in the two (or more) legal entities having equity holders in common. The 'stapled securities' cannot be traded independently and are quoted at a single price where listed. A stapled entity is an arrangement whereby a legal entity (typically a company) has issued equity instruments that are ‘stapled’ to the equity instruments of another legal entity or entities (typically a trust).
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