Full text of ERNST & YOUNG CORPORATE FINANCE (CANADA) INC.'s X-17A-5 filed 2020-08-28 (period 2020-07-03). Broker-dealer annual report from SEC EDGAR — readable, searchable, and available as markdown for AI agents.
{0}------------------------------------------------ ## **ERNST & YOUNG CORPORATE FINANCE (CANADA) INC. NOTES TO STATEMENT OF FINANCIAL CONDITION JULY 3, 2020** (amounts expressed in U.S. dollars) # **1. BASIS OF PRESENTATION** Ernst & Young Corporate Finance (Canada) Inc. (the "Company") was incorporated on November 12, 2002 under the Canada Business Corporations Act and commenced operations on October 23, 2003 as a licensed member of the Financial Industry Regulatory Authority, Inc. ("FINRA"). The Company is registered with the United States Securities and Exchange Commission (the "SEC") as a broker-dealer. The Company is wholly-owned by EY Advisory Services Inc. ("EYAS"). The Company's principal activities include providing customized financing, transaction advice and facilitation of financing information to companies engaged in cross-border business activities. The Company does not carry securities accounts for customers or perform custodial actions for customers' securities. The Company's fiscal year end date is determined as the Friday closest to June 30. In the current year, the year-end date was July 3, 2020 and in fiscal 2019 the closest Friday to June 30 fell on June 28, 2019. # **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** ## **(a) General -** The Company's accounting policies are in accordance with United States generally accepted accounting principles ("GAAP") and are applied consistently. ## **(b) Cash and cash equivalents –** Cash and cash equivalents are comprised of balances with banks and short-term investments with original maturities of less than 90 days. ### **(c) Financial instruments -** Financial instruments are classified into one of five categories: held for trading ("HFT"), held-to-maturity ("HTM"), loans and receivables, available for sale ("AFS"), or other financial liabilities. Effective July 1, 2019, equity instruments not measured under the equity method are measured at fair value, in place of the above classifications. The classification is determined at initial recognition and depends on the nature and purpose of the financial instruments. (i) HFT financial instruments - HFT financial instruments include assets and liabilities that are held for trading or designated upon initial recognition as HFT. These financial instruments are measured at fair value. A financial instrument is classified as held for trading if it has been acquired principally for the purpose of selling in the near future; it is a part of an identified…Read the full text as markdown