XML 60 R46.htm IDEA: XBRL DOCUMENT v3.23.2
Basis of presentation (Policies)
 6 Months Ended
Jun. 30, 2023
Basis of presentation [Abstract]  
Basis of presentation policy
Basis of Presentation
The consolidated interim financial statements have been prepared without audit. The Consolidated Statement of Financial Condition
data at
 
December 31,
 
2022 was
 
derived from
 
audited financial
 
statements. The
 
unaudited interim
 
financial statements
 
are, in
 
the
opinion
 
of
 
management,
 
a
 
fair
 
statement
 
of
 
the
 
results
 
for
 
the
 
periods
 
reported
 
and
 
include
 
all
 
necessary
 
adjustments,
 
all
 
of
 
a
normal recurring nature, for a fair statement of
 
such results.
 
Certain
 
information
 
and
 
note
 
disclosures
 
normally
 
included
 
in
 
financial
 
statements
 
prepared
 
in
 
accordance
 
with
 
accounting
principles
 
generally
 
accepted
 
in
 
the
 
United
 
States
 
of
 
America
 
have
 
been
 
condensed
 
or
 
omitted
 
from
 
the
 
unaudited
 
financial
statements
 
pursuant
 
to
 
the
 
rules
 
and
 
regulations
 
of
 
the
 
Securities
 
and
 
Exchange
 
Commission.
 
Accordingly,
 
these
 
financial
statements should be read in conjunction
 
with the audited Consolidated Financial Statements of the
 
Corporation for the year ended
December 31, 2022, included
 
in the 2022 Form
 
10-K. Operating results for
 
the interim periods disclosed
 
herein are not necessarily
indicative of the results that may be expected for
 
a full year or any future period.
The Corporation embarked on a
 
broad-based multi-year, technological and
 
business process transformation during the second
 
half
of 2022. The needs and expectations of
 
the Corporation’s clients, as well as
 
the competitive landscape, have evolved, requiring the
Corporation to
 
make
 
important
 
investments
 
in
 
its
 
technological infrastructure
 
and
 
adopt
 
more
 
agile
 
practices.
 
The
 
Corporation’s
technology and business transformation will be
 
a significant priority for the Corporation over the next
 
three years and beyond.
As
 
part
 
of
 
this
 
transformation,
 
the
 
Corporation
 
aims
 
to
 
expand
 
its
 
digital
 
capabilities,
 
modernize
 
our
 
technology
 
platform,
 
and
implement agile and
 
efficient business
 
processes across the
 
entire Corporation. To
 
facilitate the transparency
 
of the
 
progress with
the transformation initiative and to better portray the level of technology
 
related expenses categorized by the nature of the expense,
effective
 
in the
 
fourth quarter
 
of
 
2022,
 
the
 
Corporation has
 
separated technology,
 
professional fees
 
and
 
transactional and
 
items
processing related expenses as standalone expense categories in the
 
accompanying Consolidated Statement of Operations. There
were no
 
changes to
 
the total
 
operating expenses
 
presented.
 
Prior periods
 
amount in
 
the Consolidated
 
Financial Statements
 
and
related disclosures have been reclassified to conform
 
to the current presentation.
 
The following table provides the detail of
 
the reclassifications for each respective quarter:
Quarter ended
Six months ended
30-Jun-22
30-Jun-22
Financial statement line item
As reported
Adjustments
Adjusted
As reported
Adjustments
Adjusted
Equipment expenses
$
25,088
$
(16,414)
$
8,674
48,567
(31,504)
17,063
Professional fees
114,872
(76,442)
38,430
223,369
(148,147)
75,222
Technology and
 
software expenses
-
74,761
74,761
-
145,296
145,296
Processing and transactional services
-
31,037
31,037
-
61,990
61,990
Communications
5,993
(2,496)
3,497
12,140
(4,970)
7,170
Other operating expenses
28,738
(10,446)
18,292
64,887
(22,665)
42,222
Net effect on operating expenses
$
174,691
$
-
$
174,691
$
348,963
$
-
$
348,963
Use of estimates
Use of Estimates in the Preparation of Financial Statements
The preparation of financial
 
statements in conformity with
 
accounting principles generally accepted in
 
the United States
 
of America
requires management to make
 
estimates and assumptions that
 
affect the reported
 
amounts of assets and
 
liabilities and contingent
assets
 
and
 
liabilities
 
at
 
the
 
date
 
of
 
the
 
financial
 
statements,
 
and
 
the
 
reported
 
amounts
 
of
 
revenues
 
and
 
expenses
 
during
 
the
reporting period. Actual results could differ from those estimates.