Key Audit Matter Reporting – AASOC

Date recorded:

At its meeting on July 8, 2019, the AASOC received an update from the AASB Chair regarding this issue. Mr. Charbonneau noted that the AASB had considered the purpose and reporting characteristics of an investment fund, disclosure, and liquidity regulations that apply to investment funds and the new information received as part of the Exposure Draft process. Having done so, the Board had decided to exclude entities required to comply with NI 81-106 from communicating KAM.

With respect to the effective dates, he advised that the AASB had decided to defer the proposed effective date for auditors of entities within the scope of the Exposure Draft to financial statement periods ending on or after December 15, 2022. Mr. Charbonneau highlighted the public interest considerations of this decision, including that an extra year should result in higher-quality communications and that education is needed for all stakeholders in the financial reporting process. The AASB intends to approve Handbook changes in September 2019 and will seek AASOC’s approval of due process in October 2019. The Board plans to issue the new standard into the Handbook in December 2019.

Review the minutes on the AASOC's Web site.

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