The Jazz guys are mainly correct.
Reports of reaching altitude are not required but recommended when operating in a non-radar environment (most of the Northern and Arctic Domestic airspace). This policy of course would not really apply to VatSim as, due to the nature of our network, pilots are always in a radar environment.
Here is the excerpt from Canada`s Aeronautical Information Manual (AIM).
Quote:
8.4 Altitude Reports
Although the CARs do not specifically direct pilots to report altitude information to ATC, pilots, if not operating in radar airspace (i.e. radar-identified by ATC), should report reaching the altitude to which the flight has been initially cleared. When climbing or descending en route, pilots should report when leaving a previously-assigned altitude and when reaching the assigned altitude.
On initial contact with ATC, or when changing from one ATC frequency to another, when operating in radar or non-radar airspace, pilots of IFR and CVFR flights should state the assigned cruising altitude and, when applicable, the altitude through which the aircraft is climbing or descending.
In order for ATC to use Mode C altitude information for separation purposes, the aircraft Mode C altitude readout must be verified. The Mode C altitude is considered valid if the readout value does not differ from the aircraft reported altitude by more than 200 ft. The readout is considered invalid if the difference is 300 ft or more. Therefore, it is expected that pilot altitude reports, especially during climbs and descents, will be made to the nearest 100-ft increment.
Example:
EDMONTON CENTRE AIR CANADA 801 HEAVY, LEAVING 8 300 FEET, CLIMBING TO FLIGHT LEVEL 350.
If the phrase “report reaching”, “report leaving” or “report passing” is used by ATC, the pilot shall comply (CAR 602.31—Compliance with Air Traffic Control Instructions and Clearances).
Rob