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2020

AcSB Exposure Draft – 2021 Annual Improvements

Oct 15, 2020

On October 15, 2020, the Accounting Standards Board (AcSB) issued an exposure draft proposing annual improvements to accounting standards for private enterprises and accounting standards for not-for-profit organizations. Comments are requested by December 14, 2020.

The exposure draft includes proposed amendments to:

Part II – Accounting Standards for Private Enterprises

  • FIRST-TIME ADOPTION, Section 1500
  • CURRENT ASSETS AND CURRENT LIABILITIES, Section 1510
  • CASH FLOW STATEMENT, Section 1540
  • FINANCIAL INSTRUMENTS, Section 3856

Part III – Accounting Standards for Not-for-Profit Organizations

  • FIRST-TIME ADOPTION BY NOT-FOR-PROFIT ORGANIZATIONS, Section 1501

The AcSB expects to issue the final amendments in the second quarter of 2021. The amendments will be effective for years beginning on or after January 1, 2022. Earlier application is permitted. The AcSB intends that the amendments be applied retrospectively.

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

AcSB Exposure Draft – Leases

Sep 18, 2020

On September 18, 2020, the Accounting Standards Board (AcSB) released an exposure draft and seeks feedback on its proposals to provide relief for both lessees and lessors on accounting for lease modifications received or granted as a result of the COVID-19 pandemic. These proposals apply to private enterprises and NFPOs applying Parts II and III of the CPA Canada Handbook – Accounting. Comments are requested by October 2, 2020.

The economic consequences of the COVID-19 pandemic have given rise to lease concessions, such as lease payment deferrals or lease payment waivers. Section 3065 provides guidance on accounting for changes to the provisions of an existing lease and requires that any such lease modifications be accounted for as new leases. This could be onerous for private enterprises, particularly those with many leases. The AcSB discussed the available options and decided that standard setting is required to provide the necessary relief for lessees and lessors.

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

AcSB issues three resource documents to assist ASPE preparers with possible accounting issues as a result of COVID-19

May 19, 2020

On May 19, 2020, the Accounting Standards Board (AcSB) released three COVID-19 resource documents to assist preparers in preparing financial statements in accordance with Part II of the CPA Canada Handbook – Accounting.

Handbook Update – Section 3065, Leases

Nov 02, 2020

On November 2, 2020, the Accounting Standards Board (AcSB) announced that CPA Canada released its Handbook update on Section 3065, "Leases". Section 3065 was amended to provide optional relief for both lessees and lessors on accounting for rent concessions received or granted as a result of the COVID-19 pandemic.

These amendments are effective for fiscal years ending on or after December 31, 2020. Earlier application is permitted, including in financial statements not yet authorized for issue, so that the practical expedient is available for COVID-19-related rent concessions granted or received in 2020.

Review further details on these amendments on the CPA Canada's website.

Handbook Update – Section 3462, Employee Future Benefits

Nov 11, 2020

On November 11, 2020, the Accounting Standards Board (AcSB) announced that Section 3462, "Employee Future Benefits", was amended on November 2, 2020 to clarify the measurement of the defined benefit obligation for plans with a legislative, regulatory or contractual requirement to prepare a funding valuation.

The amendments also remove the accommodation to allow the use of a funding valuation for defined benefit plans without a funding valuation requirement. The amendments are effective for annual financial statements relating to fiscal years beginning on or after January 1, 2022.

Review the amendments on the CPA Canada's website.

Handbook Update – Section 4250, Future Oriented Financial Information to be retained

Mar 10, 2020

On March 10, 2020, the Accounting Standards Board (AcSB) announced that part of the non-authoritative guidance that was removed from Part V on March 1, 2020 was Section 4250, Future Oriented Financial Information. This guidance continues to be relevant to private enterprise financial statement preparers and practitioners, so it will be retained in the Handbook.

Review the update on the AcSB's website.

Withdrawal of Part V from the CPA Canada Handbook – Accounting

Jan 21, 2020

On January 21, 2020, the Accounting Standards Board (AcSB) announced that as of March 1, 2020, Part V, also known as pre-changeover accounting standards, will be removed from the Handbook.

Review the press release for additional information and to find out what this means for stakeholders and preparers on the AcSB's website.

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