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July

Basis for Conclusions – Agreed-Upon Procedures Engagements

Jul 31, 2020

On July 31, 2020, the Auditing and Assurance Standards Board (AASB) released this document that summarizes the process the AASB followed in issuing CSRS 4400, "Agreed-Upon Procedures Engagements", and the Board’s conclusions regarding significant comments received in response to its Exposure Draft.

Review the Basis of Conclusions on the AASB’s website.

Basis for Conclusions – AuG 50, Conducting a Performance Audit in the Public Sector in Accordance with CSAE 3001

Jul 31, 2020

On July 31, 2020, the Auditing and Assurance Standards Board (AASB) released a summary of the process followed in developing the Guideline and the Board’s conclusions regarding significant comments received in response to its Exposure Draft.

Review the Basis of Conclusions on the AASB’s website.

Basis for Conclusions – Conforming Amendments to Canadian Standards Resulting from IAASB Conforming Amendments to the IAASB International Standards as a Result of the Revised IESBA Code

Jul 31, 2020

On July 31, 2020, the Auditing and Assurance Standards Board (AASB) released this document that summarizes the process the AASB followed in revising various standards as a result of IAASB conforming amendments to the IAASB International Standards as a result of the revised IESBA Code.

The Basis for Conclusions has been prepared by staff of the AASB. It relates to, but does not form part of the following Canadian standards:

  • CSQC 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance Engagements;
  • CAS 200, Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Canadian Auditing Standards;
  • CAS 220, Quality Control for an Audit of Financial Statements;
  • CSAE 3000, Attestation Engagements Other than Audits or Reviews of Historical Financial Information;
  • CSAE 3001, Direct Engagements; and
  • CSRE 2400, Engagements to Review Historical Financial Statements.

The revisions to Canadian standards dealing with breaches of ethical requirements have an effective date of July 15, 2020.

Review the Basis of Conclusions on the AASB’s website.

Goodwill and Impairment project webinar

Jul 31, 2020

On July 31, 2020, the In­ter­na­tional Ac­count­ing Stan­dards Board (IASB) released a webinar to introduce the Discussion Paper "Business Combinations—Disclosures, Goodwill and Impairment", a consultation document of the Goodwill and Impairment project.

The IASB is seeking feedback on the Discussion Paper Business Combinations—Disclosures, Goodwill and Impairment. The webinar discusses the Board’s preliminary views expressed in the Discussion Paper, which set out to improve the information companies provide to investors, at a reasonable cost, about the acquisitions those companies make. The recording lasts approximately 50 minutes.

Listen to the recording on the IASB's website.

IAASB assists with audit considerations for the impact of COVID-19

Jul 31, 2020

On July 31, 2020, the In­ter­na­tional Au­dit­ing and As­sur­ance Stan­dards Board's (IAASB) Chair, Tom Seidenstein, gave an update on the Board's COVID-19 response.

The COVID-19 pandemic continues to disrupt markets, businesses, and organizations. This disruption has spawned an environment of uncertainty and unpredictability that may create risks that are new, or intensified, in the circumstances.

The IAASB's goal is to support the important role auditors must play in sustaining trust in financial and other external reporting. The IAASB has been closely working with its national standard-setting partners and the International Ethics Standards Board for Accountants (IESBA) to coordinate efforts and has been in regular discussion with regulatory authorities.

A core element of their COVID-19 response has been the development of a series of specific COVID-19 audit related resources to help our stakeholders, and the larger accountancy community, navigate the application of the International Standards on Auditing (ISAs) in the current circumstances.

Since March, the IAASB has published six “Staff Audit Practice Alerts”.

Review the press release and alerts on the IAASB's website.

IASB issues webcast on amendments to IFRS 17

Jul 30, 2020

On July 30, 2020, the In­ter­na­tional Ac­count­ing Stan­dards Board (IASB) issued a two-part webcast that provides an overview of the amendments in IFRS 17.

The IASB issued amendments to IFRS 17 in June 2020 to address concerns and implementation challenges. Specifically, the webcast focuses on implementation issues related to the amendments related to (1) requirements other than transition and (2) transition requirements.

Listen to the webcasts on the IASB’s website.

Ontario introduces interim registration and prospectus exemptions to facilitate start-up securities crowdfunding

Jul 30, 2020

On July 30, 2020, the Canadian Securities Administrators (CSA) announced that in light of COVID-19 and the challenges it presents to small businesses seeking to raise capital, the Ontario Securities Commission (OSC) made an interim local order that adopts the start-up crowdfunding regime currently in place in certain other Canadian jurisdictions (the Interim Order).

The Interim Order, which takes effect in Ontario on July 30, 2020, provides registration and prospectus exemptions for start-up crowdfunding that are substantially similar to the local exemptions in British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, New Brunswick and Nova Scotia.

On February 27, 2020, the CSA published for comment National Instrument 45-110 Start-Up Crowdfunding Registration and Prospectus Exemptions (the Proposed National Instrument), which will replace and harmonize the local start-up crowdfunding exemptions in British Columbia, Alberta, Saskatchewan, Manitoba, Québec, New Brunswick and Nova Scotia (as well as those in Ontario adopted through the Interim Order). The comment period on the Proposed National Instrument ended on July 13, 2020.

The Interim Order can be found on the OSC’s website and remains in effect until the Proposed National Instrument is adopted or until 18 months from the effective date of the order. Other jurisdictions will make corresponding updates to their local guidance documents to include Ontario.

Review the press release on the CSA's website and the interim order on the OSC's website.

Exposure Draft – Financial Instruments – Narrow scope amendments

Jul 30, 2020

On July 30, 2020, the Public Sector Accounting Board (PSAB) issued two Exposure Drafts on the presentation of derivatives and recognizing exchange gains and losses.

Exposure Draft –  Financial Instruments – Presentation Narrow Scope Amendments

PSAB proposes specific amendments to clarify the presentation of derivatives. The proposal would amend Section PS 1201, Financial Statement Presentation. Comments are requested by October 28, 2020.

Exposure Draft – Financial Instruments – Foreign Exchange Narrow Scope Amendments

PSAB proposes specific amendments to allow all public sector entities to recognize exchange gains and losses directly in the statement of operations. Comments are requested by October 28, 2020.

The proposal would amend the following sections: 

  • Section PS 1201, Financial Statement Presentation
  • Section PS 2601, Foreign Currency Translation
  • Section PS 3450, Financial Instruments

 

Notice of Intent – Extension of PSAB’s 2017–2021 Strategic Plan

Jul 30, 2020

On July 30, 2020, the Public Sector Accounting Board (PSAB) extended the end date of its current 2017–2021 Strategic Plan by one year to March 2022.

This will provide the Board with more time to review and assess the impacts of COVID-19 on its strategic direction. Comments on this extension can be submitted by September 30, 2020.

Review the press release on the PSAB's website.

Update – Revamping PSAB’s employment benefits project

Jul 30, 2020

On July 30, 2020, the Public Sector Accounting Board (PSAB) released an article that includes the details on the new project plan and what’s next for stakeholders.

PSAB approved a revised Employment Benefits project plan at the June 26, 2020 meeting.

Under the revised approach, the new employment benefits standard will become available through multiple releases.

Release 1 will provide base accounting guidance, with later releases building on those principles to further address current and emerging issues.

PSAB staff are already preparing the Release 1 exposure draft, which will focus on deferral provisions and discount rate guidance. This exposure draft will use principles from International Public Sector Accounting Standard (IPSAS) 39, Employment Benefits, as a starting point. PSAB can modify IPSAS 39 principles to better fit the Canadian environment and provide customized guidance where needed. The adoption date of Release 1 of the standard will be determined by the Board at the time that Release 1 of the standard is approved.

Later releases will focus on providing further guidance on the topic of Non-traditional pension plans and other issues.

Review the press release on the PSAB's website.

Correction list for hyphenation

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