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2016

AcSB Exposure Draft – 2017 Annual Improvements to Accounting Standards for Private Enterprises

Sep 13, 2016

On September 13, 2016, the Accounting Standards Board (AcSB) issued an Exposure Draft proposing amendments that will affect private enterprises and not-for-profit organizations. Stakeholders are encouraged to submit their comments by December 15, 2016.

The proposed amendments include:

Disclosure of Accounting Policies, Section 1505

  • The proposed amendment requires that the disclosure of accounting policies should be provided “in one of the first notes”, rather than as the first note, to the financial statements.

Accounting Changes, Section 1506

  • The proposed amendments deletes the requirement to disclose the amount of an adjustment related to an accounting policy change for the current period and requires disclosure “for each of the prior period(s) presented”.

Balance Sheet, Section 1521

  • The proposed amendments clarifies the existing presentation and disclosure requirements related to assets under capital leases. The AcSB also proposes to clarify the requirements of Section 1521, as they relate to the presentation and disclosure requirements of other standards in Part II of the Handbook.

Foreign Currency Translation, Section 1651

  • The AcSB proposes to amend Section 1651 by deleting the paragraph that requires that previously recorded write-downs of inventory should not be reversed in the translated financial statements of an integrated foreign operation and provides further clarification on the example included in paragraph 1651.51.

Leases, Section 3065

  • Leases, paragraph 3065.81, requires disclosure of the carrying amount of impaired operating lease receivables and the amount of any related allowance for impairment. The proposed amendment to paragraph 3065.81 clarifies that only the amount of the allowance for impairment is required to be disclosed and not the carrying amount of impaired operating lease receivables.

Timing of adoption and transitional provisions

The AcSB expects to issue the final amendments in the third quarter of 2017. The amendments will be effective for years beginning on or after January 1, 2018. Earlier application is permitted. The AcSB intends that the amendments be applied retrospectively.

Review the Exposure Draft on the AcSB's website.

Basis for Conclusions – Subsidiaries and Investments – Sections 1591 and 3051

Dec 08, 2016

On December 8, 2016, the Accounting Standards Board (AcSB) released this document which sets out how the AcSB reached its conclusions. As well, it sets out significant matters arising from comments received in response to its Exposure Draft and indicates how the Board dealt with the issues raised.

The final amendments are applicable for annual financial statements relating to fiscal years beginning on or after January 1, 2018, with earlier application permitted.

Download the Basis for Conclusions on the AcSB's website.

Basis for Conclusions – Clarifications to Sections 1591 and 3056

Dec 08, 2016

On December 8, 2016, the Accounting Standards Board (AcSB) released this document which sets out how the AcSB reached its conclusions. As well, it sets out significant matters arising from comments received in response to its Exposure Draft and indicates how the Board dealt with the issues raised.

The amendments are effective for fiscal years beginning on or after January 1, 2017, with earlier application permitted. However, the AcSB decided that the amendments to clarify the accounting for a subsidiary controlled through a combination of contractual arrangements and voting interests are effective for fiscal years beginning on or after January 1, 2018. This timing coincides with the effective date of amendments to be issued as a result of the Exposure Draft, “Subsidiaries and Investments,” issued in September 2015.

Download the Basis for Conclusions on the AcSB's website.

FYI Article – Subsidiaries and Interests in Joint Arrangements: Take Advantage of the Transitional Provisions in 2016

Aug 16, 2016

On August 16, 2016, the staff of the Accounting Standards Board (AcSB) issued a FYI Article to remind private enterprises that they have a one-time opportunity in 2016 to take advantage of the transitional relief contained new Section 1591, Subsidiaries, and new Section 3056, Interests in Joint Arrangements, which are effective for annual periods beginning on or after January 1, 2016.

The FYI Article explains that the new Sections include guidance that was developed in part to encourage and provide relief to private enterprises electing to consolidate their subsidiaries. However, the provisions are available only on initial transition to these new Sections. Enterprises that may benefit from the relief include those: (i) using the cost method to account for their subsidiaries who choose to prepare consolidated financial statements for the first time when applying Section 1591; and (ii) preparing consolidated financial statements that may identify additional subsidiaries not previously consolidated.

The FYI Article also notes that the AcSB expects to issue its final clarifying amendments to these new Sections in the fourth quarter of 2016. The amendments will be effective for years beginning on or after January 1, 2017 and earlier application is permitted. The amendments are intended to be applied retrospectively. Visit our Project page for additional information on these amendments.

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