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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.
Accounting Standards Board - International Financial Reporting Standards (IFRSs)
Exposure Draft - Annual Improvements to IFRSs 2010-2012 Cycle The IASB has issued an Exposure Draft proposing amendments to 11 IFRSs resulting from its annual improvements project. The comment deadline is September 5, 2012.
Accounting Standards Board
FYI Newsletter - April 2012 The April issue includes the message from the Director and articles on other topics of interest to stakeholders.
Audio Webcasts - IFRS Discussion Group April 19, 2012 Meeting Listen to the audio webcasts of the topics discussed. The Observer Summary helps listeners follow the Group's discussion.
Update - Rate-regulated Activities The AcSB staff answers stakeholders' questions about the AcSB's one-year extension of the mandatory changeover date to IFRSs for entities with qualifying rate-regulated activities. Get details on the AcSB's decision and what other actions are being taken to move this topic forward.
FAQ - Employee Future Benefits Exposure Draft Read these frequently asked questions to help you better understand the proposed changes to the accounting standards for defined benefit plans. These changes apply to private enterprises and not-for-profit organizations.
Accounting Standards Oversight Council (AcSOC)
AcSoc Announces New Appointments and Retirements AcSOC is pleased to announce new appointments and retirements to both the Council and the AcSB
Accounting Standards Board (AcSB)
Conference Call Discussion - Employee Future Benefits Exposure Draft Are you involved with private enterprises, not-for-profit organizations, or pension plans that account for a defined benefit plan using accounting standards for private enterprises? Register to attend a conference call discusion on Tuesday, May 8, 2012 to provide your input to the AcSB staff on this Exposure Draft.
Accounting Standards Oversight Council
Media Release - AcSOC appoints new Chair and Vice-Chair AcSOC is pleased to announce new leadership appointments, with Kevin Nye as its Chair and Peter Jewett as its Vice-Chair, effective April 1, 2012.
IFRS Discussion Group Meeting Agenda - April 19, 2012 An agenda covering the topics for discussion is now available. Get more information on the group, including how to attend meetings in person.
Auditing and Assurance Standards Oversight Council
Media Release - AASOC announces new Chair and Vice-Chair of the AASB AASOC is pleased to announce the appointment of Mark Davies as Chair and Cathy McGregor as Vice-Chair to the AASB, effective April 1, 2012.
Webcast - Employee Future Benefits Exposure Draft: Listen to this webcast for an overview of the proposed changes to the accounting standards for defined benefit plans by private enterprises and not-for-profit organizations. Take the quiz at the end of the webcast and get CPD credits!
Government Loans (Amendments to IFRS 1): The IASB has issued amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards to provide the same relieft to first-time adopters as is granted to existing preparers of IFRS financial statements when applying IAS 20 Accounting for Government Grants and Disclosure of Government Assistance.
Auditing and Assurance Standards Board (AASB)
The Buzz Enewsletter - First Issue: This new enewsletter from the staff of the AASB brings you all the latest "buzz" on activities and goings-on in the world of Canadian auditing and assurance standard setting. Make sure to subscribe here.
Bulletin - Auditing Considerations in an Uncertain Economic Environment: This issue of the Auditing and Assurance Bulletin highlights matters for auditors to consider in light of the uncertain economic environment. These include overall and detailed decisions, from client continuance and staffing, to the nature, timing and extent of specific audit procedures.
March 12, 2012 - The AcSB’s recently issued Exposure Draft, “2012 Improvements to Accounting Standards for Private Enterprises,” proposes a number of changes to Part II of the Handbook.
Who does this Exposure Draft affect?
What are the changes?
The improvements process will amend accounting standards for private enterprises in several areas to clarify guidance or wording and to correct for unintended consequences, conflicts or oversights.
“The improvements process is an integral part of the maintenance of the private enterprise standards. These specific proposals address a number of issues that have arisen in practice and will significantly improve the standards as a whole,” explained Greg Edwards, Principal, Accounting Standards Board. “A key part of the due process is hearing views from stakeholders regarding the specific proposals.” Provide your input today! The Exposure Draft is available for comment until June 1, 2012. The Accounting Standards Board (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. Final standards are issued in the CICA Handbook – Accounting.
IFRS Discussion Group - Report on January Meeting: Read the report for details about the group's discussion in January 2012. It reflects the AcSB's decision to expand the group's mandate and issue more detailed meeting reports. Listen to the audio recordings to hear the group's full discussion.
Exposure Draft - 2012 Improvements to Accounting Standards for Private Enterprises: The AcSB has issued an Exposure Draft proposing amendments to accounting standards for private enterprises. These amendments will affect private enterprises and not-for-profit organizations. Comments are requested, on the form provided, by June 1, 2012.
FYI Newsletter February 2012: The February issue includes the message from the Chair and articles on other topics of interest to stakeholders.
AcSB Decision Summary, February 15, 2012: This is an executive summary of discussions and decisions with respect to the topics addressed at this meeting.
Public Sector Accounting Board (PSAB)
PSAB Matters February 2012: The February issue of this e-newsletter includes a message from the Chair and articles on topics of interest to public sector stakeholders.
Use of Appropriations - Statement of Principles: PSAB has issued a Statement of Principles that seeks input on key principles and definitions that the Board intends to include in a future exposure draft. Comments, on the form provided, are requested by April 20, 2012.
Invitation to Comment, IAASB Plan: The AASB urges Canadian stakeholders to provide input to the IAASB's "Plan for a Post-Implementation Review of the Clarified International Standards on Auditing." Comments, on the form provided, are requested by September 7, 2012.
PSAB intends to expose a new standard on accounting for and reporting the use of appropriations in a government organization’s financial statements. These proposals may change existing practices. PSAB is proposing that: • the use of appropriations should be reported and separately disclosed in the statement of operations; and • disclosures would include a reconciliation of actual amounts recognized in financial statements to actual amounts funded by appropriations. “As a result of differing opinions about the nature of appropriations, current reporting practices vary across organizations and jurisdictions,” said Carol Devenny, FCA, Partner, Audit & Assurance, PwC and Task Force Chair. “A new standard will help resolve the inconsistencies in reporting practices and improve comparability.” Read the Statement of Principles and provide your comments by April 20, 2012. 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 reported by the public sector. Final standards are issued in the CICA Pubic Sector Accounting Handbook.
IPSASB Consultation Paper - Presentation in General Purpose Financial Reports: IPSASB has issued a Consultation Paper that explores concepts applicable to presentation of information in general purpose financial reports. Canadian stakeholders are encouraged to provide their views to IPSASB. Comments are requested by May 31, 2012.
As previously noted, here are two important bulletins from the AASB staff.
Bulletin - Enhance Professional Skepticism: This Auditing and Assurance Bulletin provides examples of guidance in Canadian Auditing Standards that help the auditor to properly apply professional skepticism.
Bulletin - Requirements Related to the Dating of Auditor's Reports: This Auditing and Assurance Bulletin explains the interrelationship of various requirements in Canadian Auditing Standards regarding the dating of auditor's reports. These requirements are based on the fundamental principle that the report cannot be dated before obtaining sufficient appropriate audit evidence.
AcSOC Survey of the AcSB's Performance: The AcSOC is seeking stakeholder views on the AcSB's performance. Completed surveys are requested by February 15, 2012.
Revenue from Contracts with Customers: The AcSB has issued an Exposure Draft that corresponds to the IASB's Exposure Draft on this topic. Comments, on the form provided, are requested by March 13, 2012.
Transitional Guidance (Proposed amendments to IFRS 10): The AcSB has issued an Exposure Draft that corresponds to the IASB's Exposure Draft on this topic. Comments, on the form provided, are requested by March 21, 2012.
Employee Future Benefits - Exposure Draft: The AcSB has issued and Exposure Draft proposing amendments to the standards for employee future benefits that will affect private enterprises, not-for-profit organizations, and pension plans that have chosen the deferral and amortization approach for their defined benefit plans. Comments, on the form provided, are requested by May 25, 2012.
Reporting Implications of New Auditing and Accounting Standards (7th edition): This publication provides guidance on reporting issues that may arise during the current period of change to new auditing and assurance standards.
2011 Improvements to Accounting Standards Private Enterprises: A Background Information and Basis for Conclusions document is now available.
Authority of Guidelines Issued by the AASB: The AASB has issued an Exposure Draft seeking comments on its proposal to revise various Handbook pronouncements to clarify the status and authority of Assurance and Related Services Guidelines and non-authoritative material. Comments, on the form provided, are requested by April 15, 2012.
Withdrawal of AuG-19, AuG-32 and AuG-39: The AASB has issued an Exposure Draft seeking comments on its proposal to withdraw three Assurance and Related Services Guidelines. Comments, on the form provided, are requested by April 15, 2012.
NPO Director Alert - New Canada Not-for-Profit Corporations Act: The corporate legislation that governs charities and not-for-profit organizations has changed, which may affect entities' requirements for assurance on their financial statements. Public accountants are encouraged to talk with their clients regarding this legislation's impact.
Asset Requirement Obligations Task For Members Sought: This Task Force will develop a public sector standard addressing accounting and financial reporting issues relating to asset retirement obligations.
Financial Instruments - Transitional Provisions: PSAB has issued an Exposure Draft that proposes to make amendments to the transitional provisions in Section PS 2601, Foreign Currency Translation, and Section PS 3450, Financial Instruments. Comments, on the form provided, are due February 24, 2012.
Private Enterprise Questionnaire on Consolidations: The AcSB is seeking feedback from preparers, practitioners, advisors and users to assist with its Consolidation project for private enterprises. Completed questionnaires are requested by January 30, 2012.
Agenda Consultation 2011: The Accounting Standards Oversight Council has submitted a response to the IASB that strongly supports the priorities the AcSB identified in its response because the AcSB's recommendations respond to concerns of Canadian stakeholders. The letter encourages the IASB to take the actions needed to demonstrate that IFRSs are of high quality.
Two Basis for Conclusions documents have been issues:
AcSOC Seeking New AcSB Member: The Accounting Standards Oversight Council is currently seeking new members to appoint to the AcSB.
Government Loans (Proposed amendments to IFRS 1): The AcSB has issued an Exposure Draft that corresponds to the IASB's Exposure Draft on this topic. Comments, on the form provided, are requested by January 5, 2012.
PSAB Seeking New Task Force Members: PSAB is seeking individuals interested in joining a task force to examine financial reporting issues facing public sector entities reporting revenues.
Reporting Implications of New Auditing and Accounting Standards (6th Edition): The AASB has issued the latest of this publication, which provides guidance on reporting issues that may arise during the current period of change to new auditing and accounting standards.
Accounting Standards Board (AcSB) News
Notice of IFRS Discussion Group Meeting: The next meeting of the IFRS Discussion Group will be held on January 12, 2012 in Toronto. Individuals are encouraged to submit issues relating to the application of IFRSs in Canada by November 14, 2011 for consideration at this meeting. For further information, see Submission of Issues.
Fair Value Measurement by Pension Plans - Amendmeents to Section 4600: A Background Information and Basis for Conclusions document on this topic is now available.
Improvement to IFRSs: The AcSB has submitted a commet letter responding to the IASB's Exposure Draft.
Public Sector Accounting Board (PSAB) News
Stakeholder Survey on PSAB Performance: PSAB is seeking feedback from stakeholders to help gauge its performance and identify areas for development. Completed surveys are requested by November 21, 2011.
AcSOC Seeks Chair for PSAB: The Accounting Standards Oversight Council is seeking an exceptional individual to serve as a Chair of the Public Sector Accounting Board, beginning January 2012.
September 26, 2011 - The Accounting Standards Board (AcSB) is requesting Canadian stakeholders' views on the International Accounting Standards Board (IASB) Agenda Consultation 2011, which addresses what areas the IASB proposes to give priority to over the next three years.
The IASB is proposing to address strategies that fall into the following two main categories:
Ensure your voice is heard
The AcSB is seeking input in order to develop an informed response to the IASB's Request for Views on this paper.
"This is our opportunity to get our voice heard and influence what the IASB will give priority to, directly impacting financial reporting internationally and here at home," explained Nicky Lahner, Principal, Accounting Standards Board. "We look forward to receiving input from Canadians in order to develop an informed response on this document."
The AcSB Invitation to Comment on the IASB Agenda Consultation 2011 is available for comment until October 24, 2011. As well, the AcSB is holding webinars, roundtable discussions and conference calls to assist in developing an informed response.
September 22, 2011 - The recently released AcSB Exposure Draft supports an International Accounting Standards Board (IASB) proposal to delay the mandatory adoption date for International Financial Reporting Standards (IFRS) 9 Financial Instruments to periods beginning on or after January 1, 2015.
The delay proposed will allow entities to asses new guidance on impairment of financial assets, accounting for insurance contracts and hedge accounting before implementing new requirements for classification and measurement.
However, the relief from restarting comparative amounts available if IFRS 9 is adopted in periods beginning before January 1, 2012 will not be extended.
"This proposed change will provide entities the ability to make informed choices about the new accounting standards for financial instruments," said Kate Ward, Principal, Accounting Standards Board. "This flexibility may compromise comparability between entities until the new mandatory adoption date."
The Exposure Draft is available for comment until October 21, 2011.
The Accounting Standards Board (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.
September 8, 2011 - In August 2011, the Public Sector Accounting Board's Conceptual Framework Task Force issued Consultation Paper 1, "Characteristics of Public Sector Entities." PSAB task forces develop draft standards and guidance for consideration by the Board.
Why has Conceptual Framework Task Force issued Consultation Paper 1?
Public sector entities include all levels of government, as well as all government organizations that apply the CICA Public Sector Accounting Handbook in preparing their financial statements.
"The key characteristics of public sector entities set out the environment within which they operate. They may also have accounting and reporting implications for their financial statements," said Martha Jones Denning, Principal of Public Sector Accounting. "In particular, the need for public accountability may affect what is reported in the statements and how the information is presented."
Feedback on Consultation Paper 1 is required by October 15, 2011. A companion webcast that guides stakeholders through the document will be available on PSAB's website this month.
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 reported by the public sector.
September 1, 2011 - The Public Sector Accounting Board has issued an Exposure Draft regarding proposed amendments to improve accounting standards for public sector entities in the CICA Public Sector Accounting (PSA) Handbook.
Recently, changes have been made to Canadian assurance standards and PSAB has issued standards that apply when reporting on financial instruments. As a result, it is proposed that a number of Sections in the PSA Handbook be updated to ensure clarity and prevent misintepretation.
"PSAB is proposing changes to integrate recently issued pronouncements that affect legacy Sections in the PSA Handbook," said Robert Correll, Consultant to PSAB. "This new round of improvements is intended to provide clarity and further help users apply the standards consistently and appropriately."
The Exposure Draft is available for comments until October 28. 2011.
August 23, 2011 - The Auditing and Assurance Standards Board (AASB) has released the Fourth edition of Reporting Implications of New Auditing and Accounting Standards to provide guidance on reporting issues that may arise during teh current period of change to new auditing and accounting standards.
http://www.aasbcanada.ca/reference-material-for-practitioners/item50999.pdf
August 23, 2011 - The Accounting Standards Board (AcSB) has released their latest FYI Newsletter, which includes a message from the Chair and details on the IASB work plan.
http://www.acsbcanada.org/fyi-newsletter/item51923.pdf
August 23, 2011 - Basis for Conclusions documents for Section PS 1201, Financial Statement Presentation; Section PS 2601, Foreign Currency Translation; and Section PS 3450, Financial Instruments are now available from the PSAB staff.
http://www.psab-ccsp.ca/basis-for-conclusions/index.aspx
August 17, 2011 - In June 2011, the Public Sector Accounting Board (PSAB) issued the new standard, Section PS 3450, Financial Instruments. Now available for comment is the Exposure Draft, "Amendments Resulting from Section PS 3450".
Adoption of Section PS 3450 has implications on the measurement and reporting of temporary and portfolio investments.
"The amendments PSAB is proposing align the reporting of public sector investments, based on the measurement and methodology set out in Financial Instruments," explained Robert Correll, Principal of Public Sector Accounting.
The Exposure Draft is available for comments until October 14, 2011.
August 10, 2011 - The Public Sector Accounting Board is proposing amendments to the CICA Public Sector Accounting (PSA) Handbook, including the Introduction to Public Sector Accounting Standards, via a new Exposure Draft entitled "Update of Terminology".
"Originally developed to address financial reporting needs of governments, the PSA Handbook now accommodates much more," explained Jim Keates, Principal of Public Sector Accounting. "The changes aim to clarify the applicability of public sector accounting standards to various types of public sector entities, including government organizations."
The Exposure Draft is available for comment until September 30, 2011.
July 29, 2011 - Follow the provided link for an article to assist government not-for-profit organizations in understanding the changes in the accounting standards they will follow: http://www.psab-ccsp.ca/documents/item50854.pdf.
July 29, 2011 - The Accounting Standards Board (AcSB) has issued an Exposure Draft that corresponds to the IASB's Exposure Draft on this topic. Comments are requested by October 21, 2011.
July 14, 2011 - Why did the Accounting Standards Board decide to adopt IFRSs and how did it go about incorporating them into the January 2010 edition of the CICA Handbook - Accounting? Find out by reading "Adoption of IFRSs: Background Information and Basis for Conclusions".
This document explains the AcSB's rationale and process for adopting these standards for publicly accountable enterprises, including:
Visit www.acsbcanada.org to access the complete document and for additional information on the AcSB.
July 6, 2011 - The document linked to is an alert published by CRA regarding the following issue: Possible double taxation refundable tax credits claimed by a corporation in its 2008 taxation year and reported in its Ontario income in 2008 and federal income in 2009.
CRA Alert: Ontario 2008 Refundable Tax Credits (PDF File, 94 KB)
June 21, 2011 - In 2010, the IRS began implementing its plan to increase the integrity of the tax preparation industry by registering and regulating all paid tax return preparers. This plan consisted of the following main components:
The IRS recently issued final regulations to modify the Treasury Department Circular 230 rules of practice, mainly to encompass the new registered tax return preparer designation. Canadian paid preparers of US tax returns who are not US attorneys or US certified public accountants (CPAs) will become part of this new class of tax return preparers, and will be subject to the rules of practice contained in this Circular. US attorneys and CPAs and certain others were already subject to Circular 230 regulations. Canadian professionals who have applied for a PTIN and will become registered tax return preparers should familiarize themselves with the revised Circular 230 regulations.
The next two components of the plan, standardized testing and continuing education are still at the development stage. Transition guidance was announced in Notice 2011-6, Implementation of Rules Governing Tax Return Preparers, issued December 30, 2010. In particular, as an interim rule, there is no continuing education requirement for registered tax return preparers who obtain a provisional PTIN during the first year of registration, which commenced on September 30, 2010. This notice also states that individuals who are supervised by a US attorney, US CPA, enrolled agent, enrolled retirement agent or enrolled actuary authorized to practice before the IRS will not be subject to the testing requirement provided that they do not sign tax returns or represent to the IRS or the general public that they are registered tax return preparers, and provided that the supervising law firm or CPA firm is authorized to practice law or be certified as a public accounting firm in the US. Given this final restriction, Canadian resident supervised tax preparers may not be exempt from testing.
The IRS released Notice 2011-48, Registered Tax Return Preparer Competency Exam on June 7, 2011. This notice invites public comments on the content and administration of this exam. Such public comments are to be received by July 7, 2011. As previously announced in Notice 2011-6, this exam will initially focus on personal tax return preparation only, and preparers who do not prepare personal tax returns will therefore initially be exempt from the testing and continuing education requirements.
The IRS reports on developments at the Tax Professionals section of the IRS website at http://www.irs.gov/taxpros/index.html.
March 10, 2011 - This bulletin clarifies the effective dates of AuG-47, Dating the Review Engagement Report on Financial Statements, and other amended Handbook material relating to dating of the practitioner's report and timing of engagement quality control reviews for assurance engagements, issued in December 2010.
http://www.aasbcanada.ca/reference-material-for-practitioners/non-authoritative/item48190.pdf
March 4, 2011 - Review engagement standards are going to be revised. The Auditing and Assurance Standards Board (AASB) will be deciding soon on the nature and extent of the revisions.
"The AASB project that will either revise or replace the Canadian standards for review engagements," said Svetlana Berger, Principal, Auditing and Assurance Standards. "A fundamental question being considered by the AASB is whether to adopt proposed International Standard on Review Engagements (ISRE) 2400 (Revised), Engagements to Review Historical Financial Statements, or to develop a unique Canadian standard for review engagements. The Board needs to hear from stakeholders to ensure it makes an informed decision about what is right for Canadians."
Go to www.aasb.ca to view the Invitation to Comment. Comments are to be received by April 11, 2011.
February 7, 2011 - The Canadian Institute of Chartered Accountants (CICA) and the Institute of Chartered Accountants of India (ICAI) has signed a Memorandum of Understanding (MOU) on Reciprocal Membership Arrangements. The MOU specifies the criteria by which members of one body are eligible for membership in the other. It was signed by the CICA on behalf of the provincial and territorial Institutes/Ordre of chartered accountants and the Institute of Chartered Accountants of Bermuda, which has long been affiliated with the CICA. The MOU requires ratification by these bodies as well as the boards of directors of the CICA and ICAI. The MOU recognizes the similarity of accounting education for CAs in both countries and will reduce the admission requirements for qualified CAs from India. Under the MOU:
Q&A: Memorandum of Understanding on Reciprocal Membership Arrangements between The Chartered Accountants of India and the Canadian Institute of Chartered Accountants 1. What is a Memorandum of Understanding? How is it different from a Mutual Recognition Agreement? A Mutual Recognition Agreement is an agreement between two accounting bodies that have determined that their qualification processes are substantially equivalent. Members of each body are entitled to membership in the other by demonstrating competency in local tax and law, and demonstrating that they meet experience requirements. Canada recognizes 13 accounting bodies as having equivalent qualification processes. To qualify for a Canadian CA designation, members of these bodies are not required to take additional formal education through a regional professional education program, nor are they required to pass the UFE. Instead, they must pass an examination of Canadian tax, law and professional conduct. A Memorandum of Understanding on reciprocal membership arrangements is negotiated between two accounting bodies that have determined they are not substantially equivalent, that the qualification process of one body does not, in some significant aspect, meet the requirements of the other. The Memorandum specifies the specific requirements which must be met. In the case of the review of the qualification program of the Institute of Chartered Accountants of India, it was determined that the examination process was not equivalent because it did not include an integrated multi-disciplinary assessment of pervasive skills similar to our UFE. Members of the ICAI do however have at least three years of practical experience during which time they develop and demonstrate these skills. For this reason, qualified members of the ICAI are required to demonstrate these skills by passing the UFE. 2. I am a member of the Institute of Chartered Accountants of India? What does this mean to me? Once the Memorandum of Understanding has been ratified, members of the ICAI who have a recognized university degree will be able to qualify for a Canadian CA designation by:
You will need to register with the Institute of Chartered Accountants of Alberta (ICAA) in order to write the UFE. If you are seeking audit rights, you will need to the ICAA to determine what additional requirements are necessary. The MOU agreement governs admission to the profession. Access to audit rights is not included in the MOU. The provincial institutes/ordre and Institute of Chartered Accountants of Bermuda will individually determine what additional requirements are needed for licensure. Contact the ICAA for more information. 3. I have my Canadian CA designation and I am considering relocating to India. What does this mean to me? Once the Memorandum of Understanding is ratified, you will be eligible to become a member of the Institute of Chartered Accountants of India by passing the ICAI’s examinations in corporate and allied laws, and tax. 4. When does this Memorandum of Understanding come into effect? The Memorandum of Understanding comes into effect when it is ratified by the boards of directors of the CICA and ICAI and the Council of the ICAA. For more information, contact the ICAA at 1-800-232-9406 or 780-424-7391.
December 16, 2010 - The Canadian Institute of Chartered Accountants (CICA) has been a trusted publisher of tax and accounting titles for more than 70 years. CICA's CAstore contains more than 1,300 titles, bringing a wealth of knowledge and insight to professionals in public practice, industry, government, and education. Visit CAstore.ca today for relevant, reliable information to help you make better business decisions.
December 2, 2010 - Did you know that: -The 4400 series is now available in the CICA Public Sector Accounting Handbook (PSA Handbook) and has been renumbered Sections PS 4200 to PS 4270 (i.e., the PS 4200 series)? -As of January 1, 2012, government not-for-profit organizations will be required to follow the PSA Handbook? -Government not-for-profit organizations can continue to follow Part V of the CICA Handbook - Accounting until transitioning to the PSA Handbook in 2012, unless they choose early adoption? -These organizations will have the option to follow the PSA Handbook, including the PS 4200 series or, alternatively, the PSA Handbook without the PS 4200 series?
"Government not-for-profit organizations will be able to continue their existing accounting for matters such as contributions and collections that are covered in the new PS 4200 series," said Tim Beauchamp, Public Sector Accounting Director. "At the same time, they will be moving closer to the accounting framework designed for governments and the organizations they control."
Go to www.psab-ccsp.ca to learn more about not-for-profit organizations standards or www.knotia.ca to access the CICA Public Sector Accounting Handbook.
December 1, 2011 - Did you know that: -Accounting standards for not-for-profit organizations are now available in Part III of the CICA Handbook - Accounting? -Not-for-profit organizations are required to adopt either Part III or International Financial Reporting Standards for fiscal years beginning on or after January 1, 2012 and earlier application is permitted? -Existing accounting standards used by not-for-profit organizations will remain in Part V of the Handbook until they are no longer needed?
"The issuance of Part III of the Handbook completes activities related to the AcSB's current strategic plan," said Peter Martin, AcSB's Accounting Standards Director. "The next phase of improving the standards will result from recommendations made by a joint AcSB and Public Sector Accounting Board task force. The task force will begin meeting early in 2011 to develop improved standards for the unique transactions and circumstances of not-for-profit organizations in both sectors."
Go to www.acsbcanada.org to learn more about not-for-profit organization accounting standards or www.knotia.ca to access the CICA Handbook - Accounting.
September 15, 2010 - A comprehensive Frequently Asked Questions document has been posted on the CICA's designated Canadian Auditing Standards (CASs) website. In addition to providing background information about the new auditing standards, the document also delves into practical considerations, including agreeing the terms of engagement, internal controls, materiality, the auditor's report and more.
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.
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.
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 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 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.
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 - 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.