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2019

AcSB Exposure Draft – Revenue

May 01, 2019

On May 1, 2019, the Accounting Standards Board (AcSB) released an Exposure Draft that proposes to amend Section 3400, Revenue. The amendments will provide additional guidance on how to apply certain requirements in Section 3400. Comments are requested by July 31, 2019.

These amendments would also apply to not-for-profit organizations using the standards in Part III of the Handbook, as relevant.

Some of the proposals in the Exposure Draft include:

  • Additional guidance on the application of the principles will be provided in the following areas:
    • percentage of completion method;
    • multiple-element arrangements;
    • reporting revenue gross or net;
    • bill and hold arrangements; and
    • upfront non-refundable fees/payments.
  • An enterprise would be required to disclose information about the method used to measure the degree of completion of contracts accounted for using the percentage of completion method. In addition, an enterprise would be required to disclose the aggregate amount of costs incurred and profits recognized.

The proposed effective date of the amendments would be for fiscal years beginning on or after January 1, 2021, with earlier application permitted.

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

AcSB In Brief: A plain and simple overview of the AcSB’s decision to not undertake a project on hedge accounting for private enterprises and not-for-profit organizations

Jun 20, 2019

On June 20, 2019, the Ac­count­ing Stan­dards Board (AcSB) is­sued an In Brief doc­u­ment that pro­vides a plain and sim­ple overview of its decision to not undertake a project on hedge accounting for private enterprises and not-for-profit organizations

For fur­ther de­tails, re­fer to the In Brief doc­u­ment on the AcSB’s web­site.

AcSB In Brief: A plain and simple overview of the AcSB’s Exposure Draft, Revenue

Jun 17, 2019

On June 17, 2019, the Ac­count­ing Stan­dards Board (AcSB) is­sued an In Brief document that provides a plain and simple overview of its Part II Accounting/ASPE Ex­po­sure Draft, Revenue. Stake­hold­ers are en­cour­aged to sub­mit their com­ments on the Exposure Draft by July 31, 2019.

For fur­ther de­tails, re­fer to the In Brief document on the AcSB’s web­site.

At-a-glance – Employee Future Benefits

Apr 29, 2019

On April 29, 2019, the Accounting Standards Board (AcSB) released an article on the key points noted in a letter the AcSB wrote to the Canadian Institute of Actuaries to communicate its intent to reduce diversity arising in practice.

The AcSB considered an issue at its December 2018 meeting that stakeholders raised about the use of the funding valuation in measuring the defined benefit obligation in relation to Ontario’s Provision for Adverse Deviations. The AcSB decided not to undertake any standard-setting action, but rather communicate its intent.

The AcSB approved a new project to clarify its intent regarding the use of the funding valuation in measuring the defined benefit obligation in relation to Quebec’s Stabilization Provision. The AcSB plans to issue an exposure draft no later than the third quarter of 2019 in response to stakeholder feedback about diversity arising in practice on accounting for changes in pension legislation.

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

Basis for Conclusions – Amendments to Section 3465, Income Taxes

May 31, 2019

On May 31, 2019, the Ac­count­ing Stan­dards Board (AcSB) re­leased this doc­u­ment which sets out how the AcSB reached its con­clu­sions on its project to amend Section 3465, and its dis­cus­sions on sig­nif­i­cant mat­ters aris­ing from com­ments re­ceived and is­sues raised in re­sponse to its Ex­po­sure Draft.

As part of the AcSB’s objective to maintain and improve a high-quality set of Part II standards, the AcSB considers improvements needed to current guidance. The AcSB also routinely monitors amendments made to other accounting frameworks for potential improvements to Part II. As a result of these activities, the AcSB identified an example in Section 3465 that is no longer applicable as a result of changes in income tax legislation. The AcSB also identified an amendment to U.S. Generally Accepted Accounting Principles (U.S. GAAP) eliminating the requirement to segregate deferred tax assets and liabilities into current and non-current components. In addition, the AcSB observed that International Accounting Standards Board’s (IASB), IAS 1 Presentation of Financial Statements does not permit classification of deferred tax assets and liabilities as current and non-current.

Consequently, the AcSB decided to amend Section 3465 to remove the outdated example and to require non-current classification of future income tax assets and income tax liabilities rather than require current and non-current classification of these assets and liabilities.

The amendments are applicable for annual financial statements relating to fiscal years beginning on or after January 1, 2020, with earlier application permitted.

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

 

Basis for Conclusions – Amendments to Section 3051, Investments

May 31, 2019

On May 31, 2019, the Ac­count­ing Stan­dards Board (AcSB) re­leased this doc­u­ment which sets out how the AcSB reached its con­clu­sions on its project to amend Section 3051, and its dis­cus­sions on sig­nif­i­cant mat­ters aris­ing from com­ments re­ceived and is­sues raised in re­sponse to its Ex­po­sure Draft.

Stakeholders informed the AcSB that the scope of paragraph 3051.07A is unclear. Specifically, stakeholders observed that it was not clear whether this paragraph, which relates to the application of the cost method, also applies to interests in jointly controlled enterprises accounted for using that method. Consequently, the Board decided to amend Section 3051 to clarify that paragraph 3051.07A also applies to investments in jointly controlled enterprises (JCEs) accounted for using the cost method.

The amendment is applicable for annual financial statements relating to fiscal years beginning on or after January 1, 2020, with earlier application permitted.

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

CPA Canada Publication – Introduction to accounting for cryptocurrencies under ASPE

Jun 10, 2019

On June 10, 2019, CPA Canada is­sued a publication entitled “Introduction to accounting for cryptocurrencies under accounting standards for private enterprises (ASPE)”. The publication includes: a brief overview explaining what cryptocurrencies are; a discussion of possible approaches to accounting for cryptocurrencies under existing ASPE; and a brief summary of the tax implications of transactions involving cryptocurrencies.

Read the publication on the CPA Canada web­site.

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