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News

AASB Image

AASB Exposure Draft – Conforming amendments to Canadian standards resulting from IAASB conforming amendments to IAASB International Standards as a result of the revised IESBA Code

Jan 17, 2020

On January 17, 2020, the Auditing and Assurance Standards Board (AASB) issued an Exposure Draft proposing to adopt, with appropriate amendments, proposed revisions to International standards issued by the International Auditing and Assurance Standards Board (IAASB). Comments are requested by March 27, 2020.

Review the press release and the Exposure Draft on the AASB's website.

Securities - CSA Image

Canadian securities regulators publish additional guidance for entities facilitating the trading of crypto assets

Jan 16, 2020

On January 16, 2020, the Canadian Securities Administrators (CSA) published Staff Notice 21-327 "Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets", to help these entities to determine situations where securities legislation may or may not apply.

The notice describes situations where securities legislation will and will not apply. For example, securities legislation may apply to platforms that facilitate the buying and selling of crypto assets that are commodities, because the user’s contractual right to the crypto asset may itself constitute a derivative, a security or both.

The relevant determination will depend on the facts and circumstances, including the obligations and intention to provide immediate delivery of the crypto asset. The notice provides guidance on what constitutes immediate delivery, together with a detailed example of a situation where securities legislation does not apply.

Review the press release on the CSA's website and the Staff Notice on the OSC's website.

IFRS - AcSB Image

AcSB Exposure Draft – General Presentation and Disclosures

Jan 15, 2020

On January 15, 2020, the Accounting Standards Board (AcSB) released an exposure draft that corresponds to the International Accounting Standards Board's (IASB) exposure draft of a new standard "General Presentation and Disclosures" that is intended to replace IAS 1, "Presentation of Financial Statements". Comments are requested by June 30, 2020.

The AcSB would like input from Canadian respondents on the following additional question regarding the proposed amendments:

  • The IASB has developed the proposed amendments in accordance with its due process for application around the world. Assuming the Exposure Draft proposals are finalized and approved by the IASB in accordance with its due process, do you think that the proposals are appropriate for application in Canada? If not, please specify which aspects of the proposals, and what circumstances, make the accounting requirements proposed in the Exposure Draft inappropriate.

Review the press release and exposure draft on the AcSB's website.

ASNPO_AcSB Image

AcSB Exposure Draft – Combinations – Initial Measurement and Related Disclosures

Jan 15, 2020

On January 15, 2020, the Accounting Standards Board (AcSB) released an Exposure Draft seeking feedback on its proposals to introduce new guidance on the accounting for a combination of not-for-profit organizations. These proposals apply to not-for-profit organizations applying the standards in Parts III of the CPA Canada Handbook – Accounting. Comments are requested by April 14, 2020.

The proposals in this Exposure Draft are as follows:

  • The scope of Section 4449 would include a combination involving two or more NFPOs that are unrelated parties or related parties.
  • The Section would include a set of criteria to determine when a combination is accounted for as a merger or as an acquisition.
  • The Section would include initial and subsequent measurement, presentation and disclosure guidance on how to account for a merger or acquisition.
  • The Section would apply on a prospective basis for combinations occurring on or after January 1, 2022 with early application permitted.

Review the press release and Exposure Draft on the ACSB's website.

IFRS - IASB Image

Summary of the December 2019 MCCG meeting

Jan 13, 2020

On January 13, 2020, the International Accounting Standards Board (the Board) published a summary of the Management Commentary Consultative Group (MCCG) meeting held on December 13, 2019.

The meeting focused on topics for further input, an overview of the staff’s current proposals, and supporting the adoption of the Practice Statement.

The topics for further input were:

  • information on intangibles and ESG matters in management commentary;
  • the meaning of ‘management’s view’;
  • the entity’s purpose; and
  • guidance on narrative coherence.

Review the press release and summary on the Board's website.

IFRS - AcSB Image
IFRS - ASBJ Image

AcSB and ASBJ hold joint meeting

Jan 13, 2020

On January 13, 2020, the Accounting Standards Board (AcSB) and the Accounting Standards Board of Japan (ASBJ) held a joint meeting in Toronto. The meeting was the first bilateral meeting between the two standard-setters.

At the meeting, the AcSB and the ASBJ both introduced their respective financial reporting frameworks and activities, and exchanged views on the opportunities for cooperation. They also discussed specific technical topics in which both Boards have interest, including insurance, revenue recognition and leases. The two standard-setters plan to continue to exchange views.

Review the press release on the ASBJ's website.

IFRS - ICAS Image

ICAS report on fair value measurement of financial instruments

Jan 13, 2020

In 2019, the Institute of Chartered Accountants of Scotland (ICAS) released a report examining the preparation and evaluation of fair value measurements for financial instruments reported in the financial statements.

ICAS joined forces with the International Association of Accounting Education and Research (IAAER) and the International Audit and Assurance Standard Board (IAASB) to commission qualitative research on the valuation of financial instruments. Previous research had been done from the perspective of auditors, but this research focuses on the perspective of the valuation specialist.

While the report notes no distinct differences across geographical regions, it analyses pressure points and potential conflicts in the four phases of the production of fair value measurements reported in financial statements: 1) project acquisition and planning; 2) scoping, valuation approach, and methodology; 3) estimate preparation and relationship management; and 4) negotiations and final estimate reporting.

The report does include some policy recommendations for regulators, standard-setters, and other stakeholders:

  • Auditors and regulators should consider the relative advantages and disadvantages of adopting the independent estimate approach as best practice when evaluating clients’ fair value measurements;
  • Standard-setters should consider strengthening auditor awareness of the effects of budget and timeline pressures, and scope constraints, and encourage a more collaborative team-based approach between auditors and specialists;
  • Regulators should consider incorporating an evaluation of management’s competence related to fair value measurements as a component of the auditors’ risk assessment process; and
  • Standard-setters should consider enhancing corporate governance by promoting understanding of the subjectivity inherent in fair value measurements among the board and audit committees.

Review the full report on the ICAS' website.

Securities - CSA Image

Canadian securities regulators announce consultation on an access equals delivery model for public companies

Jan 09, 2020

On January 9, 2020, the Canadian Securities Administrators (CSA) published CSA Consultation Paper 51-405 “Consideration of an Access Equals Delivery Model for Non-Investment Fund Reporting Issuers” (the consultation paper), which solicits views on the appropriateness of introducing an “access equals delivery” model in the Canadian market. Under this model, delivery of a document would be effected by the issuer alerting investors that the document is publicly available on the System for Electronic Document Analysis and Retrieval (SEDAR) and the issuer’s website.

The consultation paper provides an overview of current delivery requirements under securities legislation and describes the CSA’s proposed access equals delivery model. Additionally, the paper discusses similar models that have been implemented in other jurisdictions. The CSA is seeking comment on, among other things, the scope and mechanics of access equals delivery, including the types of documents that could be covered by the model. Comments should be submitted in writing by March 9, 2020.

Review the press release and consultation paper on the CSA's website.

PSAS - PSAB Image

Exposure Draft – 2019-2020 Annual Improvements to Public Sector Accounting Standards

Jan 09, 2020

On January 9, 2020, the Public Sector Accounting Board (PSAB) issued its 2019-2020 Annual Improvements Exposure Draft as part of an ongoing process to enhance and improve the PSA Handbook for its stakeholders. Comments are requested by March 10, 2020.

The 2019-2020 Annual Improvements reflect proposed amendments to:

  • clarify transitional provisions for consequential amendments;
  • update disclosure requirements in individual standards relating to contractual rights; and
  • replace the term “contingency” with “contingent assets and contingent liabilities”.

Review the press release and exposure draft on the PSAB's website.

IFRS - EFRAG Image

EFRAG TEG appointments and reappointments

Jan 07, 2020

On January 7, 2020, the Board of the European Financial Reporting Advisory Group (EFRAG) announced the appointment of four new members of — and six reappointments to — its Technical Experts Group (TEG).

The new EFRAG TEG members are Jens Berger (Leader of Deloitte Germany's IFRS Centre of Excellence), Erlend Kvaal (academic, Norway), David Procházka (at large, Czech Republic) and Christoph Schauerte (industry, Germany). The appointments of Mr. Berger, Mr. Kvall and Mr. Schauerte are effective January 1, 2020, while Mr. Procházka will begin his term on April 1, 2020.

EFRAG TEG Vice-Chair Nicklas Grip has been reappointed, along with Ana Rosa Cortez, Geert Ewalts, Emmanuelle Guyomard, Ambrogio Virgilio and Jed Wrigley. Their reappointments are effective from April 1, 2020.

Review the press release on the EFRAG's website.

 

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