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NFPO Combinations – AcSB

Date recorded:

At its meeting on May 15, 2019, the AcSB continued its discussion on the initial measurement of a combination between organizations within the scope of Part III of the CPA Canada Handbook -- Accounting. The Board discussed the criteria to determine whether a transaction would be considered an acquisition or a merger and provided feedback to the staff. The AcSB tentatively proposed, subject to further deliberation: (i) that not-for-profit organizations (NFPOs) should refer to Section 1582, Business Combinations, in Part II of the Handbook to account for the acquisition of a for-profit enterprise; (ii) what to include in the scope of the proposals including to not scope out combinations between entities under common control; (iii) to provide guidance for mergers and acquisitions relating to the size exemption for the recognition of capital assets and intangible assets; and (iv) to remove aspects of the acquisition guidance in Section 1582 that are not relevant to NFPOs. The AcSB considered the proposed project timeline and will continue its discussions at its June 2019 meeting.

Review the Executive Summary on the AcSB's Web site.

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