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The following are a series of updates pertaining to the CA profession. For more information on each of these matters, please follow the provided links.
August 12, 2010 - The AcSB is proposing a new standard for revenue recognition, crucial information for anyone looking to understand whether the pattern of their company's reported revenue will change.
"Revenue is one of the most important indicators of financial viability," said Kate Ward, principal with the AcSB responsible for the project. "The proposed standard will improve comparability between entities in Canada and internationally."
Go to www.acsbcanada.org to view the Exposure Draft "Revenue from Contracts with Customers". Comments are due to the AcSB by October 22, 2010.
The AcSB establishes financial accounting and reporting standards for use by Canadian companies and not-for-profit organizations and participates in the development of internationally accepted accounting standards.
July 30, 2010 - This new standard was created specifically to ease transition issues for those organizations required to move from the CICA Handook - Accounting to the CICA Public Sector Accounting Handbook; provides the choice to not adopt certain aspects of the Handbook retroactively in the transition year that would otherwise have required significant work; and provides guidance on what kind of information should be disclosed in the first set of financial statements.
"If you are an other government moving from the private sector Handbook to the public sector Handbook on or after January 1, 2011, this first-time adoption standard will make your transition easier," said Jim Keates, Principal, Public Sector Accounting. "Don't miss the opportunities presented by this new standard. Take some time to get familiar with it."
Go to www.knotia.ca to view the Public Sector Accounting Standards, Section PS 2125.
The Public Sector Accounting Board (PSAB) was created to serve the public interest by establishing accounting standards and providing guidance for financial and other performance information required by the public sector. For more information visit www.psab-ccsp.ca.
July 8, 2010 - Reading this Exposure Draft will help you to: understand why the AcSB has issued this proposal; know what entities could qualify; be aware what an entity will be required to disclose when it applies the deferral.
"Deferring the adoption of IFRS by investment companies to interim and annual financial statements for years beginning on or after January 1, 2012 will provide time for the IASB to complete its proposal to exempt investment companies from consolidation," said Rebecca Villmann, principal with the AcSB responsible for the project. "The AcSB's and the IASB's proposals will enable investment companies to report controlling interests in other entities at fair value and provide the most relevant information to the users of their financial statements, both today and in the future."
Go to www.acsbcanada.org to view the Exposure Draft "Adoption of IFRSs by Investment Companies." Comments are due to the AcSB by August 23, 2010.
June 10, 2010 - The Re-exposure Draft explains: when and how a government records funding transfers it gives to other governments, organizations and individuals; and, when and how a government records operating and capital funding transfers it gets from other levels of government.
"Accounting for transfers is a significant issue for all levels of government," said Tim Wiles CA, Chair of the PSAB Task Force that developed this Re-exposure Draft. "We believe the Re-exposure Draft responds to the issues raised by our constituents. The new proposals allow more scope for governments to apply professional judgment in recognizing the substance of the complex transfer arrangements they have with other levels of government in their financial statements."
Go to www.psab-ccsp.ca to view the Re-exposure Draft. Comments to be received by September 15, 2010.
April 1, 2010 - This update provides important information to determine whether you fit within the proposals to expand the scope of the new standards for pension plans.
"The Exposure Draft proposes to expand the scope of the new standards for pension plans to include an entity that is separate from a pension plan and whose sole purpose is to hold and invest assets received from one or more pension plans, but does not itself have a pension obligation," explained Nancy Estey, AcSB Principal responsible for the project. "A master trust is an example of such an entity."
Go to www.acsbcanada.org to view the Exposure Draft. Comments are due by April 30, 2010. To view the new standards for pension plans, which are in Part IV of the CICA Handbook - Accounting, go to www.knotia.ca.
April 1, 2010 - This update will be important if you:
"The AcSB developed the new standards for pension plans (Section 4600) based on Section 4100, Pension Plans, with some modifications," said Nancy Estey, AcSB Principal responsible for the project. "Modifications include a requirement to present pension obligations on the face of the statement of financial position, a requirement to measure investment assets at fair value, not on an actuarial asset value basis, and more extensive disclosures."
Go to www.knotia.ca to access the new standards for pension plans, which are in Part IV of the CICA Handbook - Accounting.
Also see above for an Exposure Draft proposing an emendment to the scope of these standards. Go to www.acsbcanada.org to view the Exposure Draft. Comments are due April 30, 2010.
March 29, 2010 - Follow the link provided below, to read this Exposure Draft and:
"Our stakeholders expressed a strong desire to align the Canadian standard for reporting on controls at a service organization with the corresponding US standard because of the integration of these types of services in the Canadian and US markets," said Greg Shields, Director of Auditing and Assurance Standards. "The AASB believes that the proposed CSAE, which is based on the US standard, appropriately responds to the input received. We welcome your feedback on issues that are unique to Canada."
Go to www.aasb.ca to view the Exposure Draft. Comments are to be received by May 6, 2010.
March 22, 2010 - Follow the link below to read more about the proposed changes to standards for assurance engagements and applicable Guidelines that address matters related to the dating of the practitioner's report.
"The Auditing and Assurance Standards Board believes that there is a need for guidance on how the concept of 'substantial completion' is applied to dating of the review engagement report,' said Svetlana Berger, Principal, AASB. "The proposed changes will make concepts related to the dating of the practitioner's reports on assurance engagements and matters affected by such dating, consistent with Canadian Auditing Standards."
Go to www.aasb.ca to view the Re-Exposure Draft. Comments are to be received by May 15, 2010.
The Auditing and Assurance Standards Board (AASB) is an independent body with the authority to set generally accepted auditing standards (GAAS) for financial statement audits. The AASB is responsible for providing high-quality assurance standards that enable the profession to serve the public interest and ensure public confidence.
March 15, 2010 - To assist federal registered electoral district associations, official agents and auditors with respect to their audit responsibilities under the Canada Elections Act, the CICA has, since 2005, published a Guide for Auditors of Registered Electoral District Associations Appointed Under the Canada Elections Act. The latest version of the Guide can be accessed from both the CICA website and the Elections Canada website.
The Guide provides guidance on the audit of a registered electoral district association, including sample consent, engagement and representation letters, and a model auditor's report. It summarizes the accounting and reporting requirements of the Canada Elections Act related to the Financial Transactions Return and provides steps to audit some key requirements. It also addresses accounting issues of particular interest to auditors related to the Statement of Assets and Liabilities and the Statement of Revenue and Expenses ("the financial statements") set out in Part 4 of the Financial Transactions Return.
March 5, 2010 - This Exposure Draft is useful for those who: are involved with a private organization and want to provide comment on the proposed standards; are interested to learn that the existing standards dealing with the unique circumstances of not-for-profit organizations, the 4400 series, will be carried forward.
Not-for-profit organizations would have the option to apply the accounting standards for not-for-profit organizations or International Financial Reporting Standards (IFRSs) in the future.
"The AcSB received substantial input from not-for-profit organizations and their stakeholders, emphasizing the diversity of Canadian not-for-profit organizations," said Brian Barrington and Grace Lang, the AcSB staff members responsible for the project. "This input formed the basis for providing financial reporting options for not-for-profit organizations."
Go to http://www.acsbcanada.org/documents-for-comment/item35455.pdf to view the Exposure Draft. Comments are to be received by July 15, 2010.
March 5, 2010 - This Exposure Draft will outline: the not-for-profit organization standards to be incorporated into the CICA Public Sector Accounting Handbook; the basis of generally accepted accounting principles to be followed by government not-for-profit organizations; transition dates for moving from the CICA Handbook - Accounting to the CICA Public Sector Accounting Handbook for government not-for-profit organizations.
"By incorporating Sections 4400 to 4470 as taken from the CICA Handbook - Accounting to into the CICA Public Sector Accounting Handbook, we believe the unique needs of government not-for-profit organizations will be met while allowing them to discharge their broad public accountability," said Tim Beauchamp, Director of Public Sector Accounting.
Go to www.psab-ccsp.ca to view the Exposure Draft. Comments to be received by July 15, 2010.
March 5, 2010 - Canadian standard setters have proposed changes to accounting standards for not-for-profit organizations (NFPOs). These changes would result in different financial reporting foundations for NFPOs in the public and private sectors. The Accounting Standards Board (AcSB) and the Public Sector Accounting Board (PSAB) have issued individual Exposure Drafts and request that NFPOs and other interested parties share their views on the proposals.
January 29, 2010 - This is relevant information to those who want to: know that these revisions apply to liabilities for warranties, legal disputes, business restructuring and similar items; understand that more liabilities are likely to be recognized in financial statements; and, assess the revised measurement guidance developed, including how uncertainties are to be reflected in the measurement.
"The proposals to remove the probability recognition threshold in IAS 37 and clarifications to the measurement requirements will significantly change how entities account for liabilities," said Rebecca Villmann, the AcSB Principal responsible for the project. "The proposals will result in a standard applicable to entities using IFRSs in Canada and are expected to be effective no earlier than January 1, 2012."
Visit www.acsbcanada.org to view the Exposure Draft "Liabilities - Improving IAS 37". Comments are due to the IASB and the AcSB by April 12, 2010.
January 26, 2010 - Your adoption of IFRSs could result in a myriad of changes to your financial statements in 2011 - you do not want to catch your investors by surprise. A new Canadian Performance Reporting Board publication discusses how to summarise the effects of the changeover in the MD&A. Transition to IFRSs - Communicating the Impact of the Changeover provides examples of ways to provide a succinct MD&A discussion of the impact of the changes in a way that highlights significant differences, including how changes will impact your future financial reporting.
January 26, 2010 - International Financial Reporting Standards (IFRSs) are now available in Part I of the CICA Handbook-Accounting. IFRSs will be required for publicly accountable enterprises and government business enterprises for periods beginning on or after January 1, 2011. They will also be available for any entity within the scope of the CICA Handbook - Accounting that chooses to adopt IFRSs, such as not-for-profit organizations and private enterprises.
December 22, 2009 - (NOTE: The following is an excerpt from the document) We commend to political leaders the goals stated in the Copenhagen Call to COP15 and the recommendations on Measuring and communicating progress in the Summary report for policymakers following the World Business Summit on Climate Change. The business and investor response required to support delivery of reduction targets will be enabled by an appropriate climate change disclosure framework. We call for a set of universally accepted standards for the disclosure to shareholders of climate change-related information connected to financial performance and to mainstream financial reporting. We propose that policy makers endorse collaboration between all relevant stakeholders to form an independent standard setter charged with achieving these goals.
Click here to read more.
December 12, 2009 - The first time that most publicly accountable enterprises will provide external financial information using IFS will be in their interim financial reports for the year of adoption of IFRS. This commentary reviews a few of the questions that might arise regarding presentation of interim financial statements in those reports.
This Exposure Draft explains when governments should record a liability arising from contaminated sites; provides guidance for deciding when a government is responsible for a clean up; and, outlines how the liability should be measured.
"Remediation liabilities pose some unique issues that require further elaboration in existing standards," said Doug Lynkowski, Chair of the PSAB Task Force that developed this Exposure Draft. "The document for comment provides much-needed guidance on the application of the definition of liabilities related to contaminated sties."
Go to www.psab-ccsp.ca to view the Exposure Draft. Comments to be received by January 15, 2010.
November 20, 2009 - With the future financial reporting directions for Canada's publicly accountable enterprises and private enterprises having been decided, it is now possible to move forward and provide Canadian not-for-profit organizations with clarity as to which financial reporting standards will apply in the future.
Click here (PDF File, 339 KB) to view a status update document on the future financial reporting direction for NFPOs in Canada.
November 18, 2009 - Public sector financial reporting is constantly evolving. Public Sector Accounting Board staff members are travelling across Canada offering two half-day seminars covering emerging issues in the sector.
Financial Reporting for Members in the Public Sector (PSAB Update) Edmonton, December 14 Calgary, December 15
Entity-Level Financial Statements for the Public Sector Edmonton, December 14 Calgary December 15
For more on these seminars, please click here (PDF File, 82 KB).
November 18, 2009 - The new quality control standard, CSQC 1, comes into effect December 15, 2009. All firms performing assurance engagements are affected by the new standard. For more information on CSQC 1, visit the Chartered Accountants of Canada’s designated CAS website at www.cica.ca/CAS.
November 18, 2009 - With IFRS replacing current Canadian accounting standards for publicly accountable enterprises in 2011, the time is quickly approaching for lawyers, lenders and investors to gain an understanding of the new language of accounting. The change to IFRSs will not have a direct economic effect on the operations of a company; however it will change a company’s reported financial position and operating results, in turn affecting financial ratios and other financial analysis calculated using information from these reports. In the latest in a series of IFRS-related bulletins, staff at the Accounting Standards Board reminds lawyers, bankers and investors that they should start now to anticipate the implications on contracts and investment decisions that incorporate these types of financial tools to assess the health of a company.
Check out The Lawyer, the Banker the Investor and International Financial Reporting Standards at www.cica.ca/ifrs/bulletin or on the CICA's designated IFRS website, www.cica.ca/IFRS under the IFRS Transition Resources button.
November 18, 2009 - The CICA is launching a series of podcast interviews with Canadian companies making the transition to international accounting standards. Their experiences may provide insights that help your organization implement a seamless transition to IFRS.
Episode 1: IFRS & Property, Plant and Equipment at Marsulex Inc. (17 minutes) looks at the IFRS experiences of a medium-sized company where over half of the assets are made up of PPE.
September 20, 2009 - This Risk Alert highlights quality control matters for firms to consider in the transition period between the effective date of CSQC 1 (December 15, 2009) and the effective date of the Canadian Auditing Standards (for financial statements periods ending on or after December 14, 2010). Click here for more.
Updated July 31, 2009 - To read the complete 2009 Guide to Canadian Independence Standards (in a PDF Document, 490 KB), click here.
July 6, 2009 - The independence standard, which is codified in Rule of Professional Conduct 204, took effect in 2004. It has essentially remained unchanged since then, other than a 2005 revision to address mutual funds (that took effect in 2006). The standard is lengthy and the application in a number of circumstances is not well understood. For instance, one area of confusion is regarding the application of the independence standard to the ability to provide assurance services or compilation services when the practitioner is also assisting with the preparation of accounting records and/or journal entries, as well as the related disclosure requirements. In February 2009, Council approved an additional Guideline to Rule 204.8 Independence - Disclosure of Impairment of Independence.
To read the entire article, please click here.
July 30, 2009 - These amendments should be of interest if you want to know more about required changes to accounting for impairment of financial assets held to maturity, or are interested in changes to what should be accounted for as a loan or a receivable.
"These amendments respond to requests to align the income statement effects of impairment of debt instruments in Canadian GAAP with that resulting from recently amended US GAAP and IFRS," said Ian Hague, Principal with the AcSB. "The changes will require entities using Handbook Section 3855, Financial Instruments - Recognition and Measurement, to change their approach to measuring impairment losses on debt instruments. Only that portion of an impairment resulting from credit losses in recognized in net income, rather than the full decline in fair value."
Go to www.acsbcanada.org to view the document.
July 15, 2009 - The Auditing and Assurance Standards Board has made available the new Canadian Auditing Standards, which come into effect for financial statement periods ending on or after December 14, 2010. The new quality control standard for firms, which comes into effect December 15, 2009, is also available.
For more, click here.
July 15, 2009 - In a new 20 minute video, New Canadian Auditing Standards, the CICA offers a thoughtful overview on the timing and key implications of the transition to new Canadian Auditing Standards. Presented by Eric Turner CA, Principal with the Auditing and Assurance Standards Board, and Gord Cummings CA, Auditing and Assurance Standards Board member and Partner in Vancouver Accounting firm D&H Group LLP, the video covers what the standards are, how they will affect you and your clients and where you can find out more.
July 8, 2009 - The Public Sector Accounting Board is proposing revisions to the Introduction to Public Sector Accounting Standards, which provides direction as to the appropriate basis of generally accepted accounting principles to be adhered to by government organizations. This Exposure Draft addresses the concerns raised by constituents. It identifies the type of government organizations that should follow IFRSs, factors for determining the most appropriate basis of accounting for other government organizations and transition dates for moving from the CICA Handbook - Accounting to either IFRS or the Public Sector Accounting Handbook.
July 8, 2009 - Accounting professionals are accustomed to ongoing standards, but for those preparing for the adoption of IFRS, it is critical to stay current with changes that are anticipated prior to the 2011 changeover. The Accounting Standards Board has updated a document that outlines which IFRSs are expected to apply at the changeover date, which standards are expected to change prior to 2011 and when new versions are expected to be available.
For more information click here.
July 8, 2009 - This is a crucial period for entities that will be adopting IFRS in 2011. If you have not yet started to plan your transition, you will need an aggressive strategy to catch-up. The Accounting Standards board has issued a bulletin that provides practical information about how to get the ball rolling. The bulletin suggests a starting point, provides related resources, and highlights why companies have to start their transition today.
Click here to access the guide.
May 27, 2009 - The Accounting Standards Board (AcSB) says delaying the adoption of International Financial Reporting Standards (IFRS) due to the current economic climate is not a viable option. The AcSB says the case for the adoption of IFRSs for publicly accountable enterprises in 2011 remains strong. A recently released paper entitled, “Canadian Accounting Standards, Changeover to IFRSs: January 1, 2011” explains 12 factors the board has taken into consideration.
May 8, 2009 - There are dramatic changes underway for Canadian Financial Reporting Standards and Canadian Audit and Assurance Standards. The CICA has created a gateway web page to provide all Canadian CAs with learning resources and current information on Canadian standards in transition, including International Financial Reporting Standards, International Standards on Auditing and more. Also, the Accounting Standards Board has issued a second omnibus Exposure Draft on the adoption of IFRS, which confirms the January 1, 2011 adoption date, clarifies the definition of publicly accountable enterprises and makes the essential text of the IFRS in effect at January 1, 2008 available for download. For more information, visit the CICA designated IFRS website.
May 1, 2009 - This reference guide provides an overview of the key aspects of the adoption of IFRSs, including a comparison of Canadian standards to the related IFRSs (as of July 31, 2008), prepared by the staff of the AcSB. The guide is a valuable resource for those who are in the initial stages of transition planning or require a general understanding of the new standards.
Contact the ICAA for a hard copy or download the guide from the CICA IFRS website at www.cica.ca/ifrsguide.
January 7, 2010 - The Public Sector Accounting Board (PSAB) has issued an Exposure Draft on first-time adoption of Public Sector Accounting Standards by government organizations.
The Exposure Draft explains: the general requirements for government organizations adopting the CICA Public Sector Accounting Handbook for the first time; the aspects of the Handbook that need not be adopted on a retroactive basis by government organizations; the parts of the Handbook that are to be adopted by government organizations on a going forward basis only.
"In some instances, retroactive application of the CICA Public Sector Accounting Handbook by a government organization can be onerous," said Jim Keates, Prinicpal with the PSAB. "This standard would provide limited exceptions to the general requirement that the Handbook be adopted on a retroactive basis with restatement."
Go to www.psab-ccsp.ca to view the Exposure Draft. Comments are to be received by March 25, 2010. The PSAB was created to serve the public interest by establishing accounting standards and providing guidance for financial and other performance information reported by the public sector.