Part II - ASPE

Handbook Update – Revenue – Upfront Non-refundable Fees or Payments

Nov 15, 2022

On November 15, 2022, the Accounting Standards Board (AcSB) issued an amendment to Section 3400, "Revenue", to defer the effective date for previously issued amendments relating to upfront non-refundable fees or payments from fiscal years beginning on or after January 1, 2022, to fiscal years beginning on or after January 1, 2025. Earlier application is permitted.

Review the amendments on the CPA Canada's website.

Handbook Update – AcG-20, Customer’s Accounting for Cloud Computing Arrangements

Nov 15, 2022

On November 15, 2022, the Accounting Standards Board (AcSB) issued new Accounting Guideline AcG-20, "Customer’s Accounting for Cloud Computing Arrangements", applicable to private enterprises and not-for-profit organizations. This new Guideline is effective for fiscal years beginning on or after January 1, 2024 with earlier application permitted.

Review the Accounting Guideline on the CPA Canada's website.

AcSB Exposure Draft – Improvements to Accounting for Common Control Combinations

Nov 01, 2022

On November 1, 2022, the Accounting Standards Board (AcSB) released proposed amendments to "Related Party Transactions", Section 3840. The proposed amendments address accounting for a combination between enterprises or businesses under common control and financial assets acquired or financial liabilities assumed in a combination between enterprises under common control. Comments are requested by January 31, 2023.

Review the exposure draft on the AcSB's website.

AcSB Exposure Draft: Revenue – Upfront Non-refundable Fees or Payments

Jun 30, 2022

On June 30, 2022, the Accounting Standards Board (AcSB) is­sued an Ex­po­sure Draft, Revenue – Upfront Non-refundable Fees or Payments, which proposes amendments to Section 3400, Revenue, in Part II of the CPA Canada Handbook. The amendments would also apply to not-for-profit organizations (NFPOs) applying the standards in Part III of the Handbook, as relevant. Com­ments are re­quested by August 15, 2022.

The proposed amendments would defer the effective date for upfront non-refundable fees or payments application guidance from fiscal years beginning on or after January 1, 2022, to fiscal years beginning on or after January 1, 2025.

Re­view the fol­low­ing on the AcSB's web­site:

In Brief – AcSB Exposure Draft – Customer’s Accounting for Cloud Computing Arrangements

Apr 14, 2022

On April 14, 2022, the Accounting Standards Board issued an In Brief, which provides an overview of Exposure Draft, "Customer’s Accounting for Cloud Computing Arrangements".

The proposals aim to simplify the accounting for cloud computing arrangements while ensuring entities can provide relevant information to their users.

Review the press release and publication on the AcSB's website.

AcSB Exposure Draft – Customer’s Accounting for Cloud Computing Arrangements

Mar 17, 2022

On March 17, 2022, the Accounting Standards Board (AcSB) released proposed Accounting Guideline applicable to private enterprises and not-for-profit organizations. The proposals take a pragmatic approach by providing accounting policy choices to address a range of stakeholders’ concerns when accounting for cloud computing arrangements. They also clarify the application of existing Sections. Comments are requested by June 20, 2022.

The proposed Guideline:

  • clarifies that an enterprise may determine a method on a rational and consistent basis for allocating arrangement consideration to significant separable elements in a cloud computing arrangement;
  • clarifies that an enterprise applies GOODWILL AND INTANGIBLE ASSETS, Section 3064 to account for the significant elements, unless the elements are tangible assets or rights to use tangible assets;
  • provides an optional simplification approach to permit an enterprise to expense as incurred the expenditures related to the elements in a cloud computing arrangement within the scope of Section 3064;
  • provides factors to assist an enterprise that does not apply the simplification approach in applying the control principle in Section 3064 for determining whether the cloud computing arrangement includes a software intangible asset; and
  • provides an accounting policy choice to either:
    • apply an exception to capitalize directly attributable expenditures on implementation activities when the arrangement is a software service (i.e., when no intangible asset exist) and to present such costs as prepaid expenses; or
    • continue to expense as incurred such expenditures in accordance with existing requirements in Section 3064.

The proposed Guideline would also require an enterprise to disclose information on how the cloud computing arrangement is accounted for in its financial statements.

The proposed Guideline would apply for fiscal years beginning on or after January 1, 2023, with early application permitted. Enterprises would apply the proposed Guideline retrospectively to cloud computing arrangements that exist on or after the beginning of the earliest period presented in the financial statements in which the enterprise first applies the Guideline. 

Review the Exposure Draft on the AcSB's website.

Handbook Update – Section 3065, Leases

Dec 01, 2021

on December 1, 2021, the Accounting Standards Board (AcSB) amended Section 3065, "Leases" to extend the optional relief by one year for both lessees and lessors on accounting for rent concessions received or granted as a result of the COVID-19 pandemic. This amendment is effective for fiscal years ending on or after December 31, 2021. Earlier application is permitted, including in financial statements not yet authorized for issue.

Review the amendments on the CPA Canada's website.

AcSB Exposure Draft – Financial Instruments

Sep 13, 2021

On September 13, 2021, the Accounting Standards Board (AcSB) released the exposure draft "Financial Instruments". The proposal provides an optional expedient for applying modification accounting and an exception to certain hedge accounting requirements in Section 3856, "Financial Instruments". Applying to both private enterprises and NFPOs using Parts II and III of the CPA Canada Handbook – Accounting, these amendments aim to ease financial reporting burdens related to market-wide interest rate benchmark reform. Comments are requested by October 17, 2021.

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

AcSB Exposure Draft – Leases

Jun 30, 2021

The Accounting Standards Board (AcSB) proposes, subject to comments received following exposure, to amend Section 3065, Leases in Part II of the CPA Canada Handbook – Accounting. This amendment would extend the relief period for both lessees and lessors on accounting for lease modifications received or granted as a result of the COVID-19 pandemic to December 31, 2022. This amendment would also apply to not-for-profit organizations (NFPOs) applying the standards in Part III of the Handbook, as relevant.

Stakeholders are asked to respond to this AcSB Exposure Draft, Leases by July 30, 2021.

Re­view the press release and copy of the Exposure Draft on the AcSB's web­site.

Handbook Update – 2021 Annual Improvements

Mar 26, 2021

On March 26, 2021, the Accounting Standards Board (AcSB) issued the 2021 annual improvements to accounting standards for private enterprises and accounting standards for not-for-profit organizations. These amendments are effective for fiscal years beginning on or after January 1, 2022 with earlier application permitted.

Review the amendments on the CPA Canada's website.

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