AcSB issues “Consultation Paper I – Exploring Scalability in Canada”

Mar 28, 2023

On March 28, 2023, the Accounting Standards Board (AcSB) issued a consultation paper entitled “Consultation Paper I - Exploring Scalability in Canada” with an objective to obtain broad input from private enterprise, not-for-profit organization (NFPO), and pension plan stakeholders – including financial statement preparers, users, and practitioners – on current key issues and potential solutions related to scaling the standards. The Consultation Paper closes for comments on July 31, 2023

By way of background, as part of the AcSB’s 2022-2027 Strategic Plan, the AcSB committed to exploring scaling the standards for non-listed entities to better meet different reporting needs. Scaling the standards (or tiering) may mean providing accounting policy choices, changing disclosure requirements, or even adding new frameworks to the CPA Canada Handbook – Accounting (Handbook) to better meet the needs of entities of all sizes, and interested and affected parties.

The AcSB understands that in some circumstances, Part I of the Handbook (IFRS® Accounting Standards) may be too complex or onerous to apply. At the same time, Parts II (accounting standards for private enterprises) or III (accounting standards for not-for-profit organizations) do not sufficiently meet users’ needs. The Board is also aware of smaller private enterprises and NFPOs that consider Parts II and III too complex for their needs and their financial statement users .As a result, the concept that “one size does not fit all” when it comes to the reporting needs of Canadian entities continues, and a scaled approach to financial reporting in Canada is needed.

Re­view the Consultation Paper on AcSB's website.

AcSB issues future domestic work plan consultation survey

Oct 23, 2023

On October 23, 2023, the Accounting Standards Board (AcSB) of Canada issued Future Domestic Work Plan Consultation surveys to gather input on potential domestic projects for its 2024-2025 Annual Plan and beyond. Through the survey, the AcSB would like to determine which additional projects to prioritize when residual resources become available.

The survey covers proposed projects under the domestic standards in the CPA Canada Handbook – Accounting:

  • Part II - Accounting Standards for Private Enterprises
  • Part III - Accounting Standards for Not-for-Profit Organizations
  • Part IV - Accounting Standards for Pension Plans

Access the surveys on the FRAS Canada website.

AcSB’s On-demand Webinar: Scaling the Standards

Apr 19, 2023

On April 19, 2023, The Accounting Standards Board’s (AcSB) posted an on-demand webinar which includes a discussion of its Consultation Paper, “Exploring Scalability in Canada”.

Canada’s financial reporting landscape continues to evolve, and the needs of private enterprises, not-for-profit organizations, and pension plans – and those of their financial statement users – are no exception. These entities’ size and complexity vary considerably – but do the accounting standards they apply to develop their financial statements reflect this? The webinar recording includes:

  • an overview of why the AcSB is exploring scaling the standards and more on the topic of scalability;
  • an open Q&A session featuring questions from attendees; and
  • an update on recently issued and updated accounting standards and other projects on the go, including:
  • Related Party Combinations;
  • Revenue; and

Listen to the webinar on the FRAS Canada website.

Section 3041, Agriculture – How to apply the disclosure requirements for the net realizable value model

Mar 22, 2023

On March 22, 2023, the Ac­count­ing Stan­dards Board (AcSB) re­leased a resource to assist entities in applying the disclosure requirements of Section 3041, Agriculture, related to the net realizable value model.

In November 2019, the Accounting Standards Board (AcSB) issued Section 3041, Agriculture in Part II of the CPA Canada Handbook – Accounting. Section 3041 is a new standard for agricultural producers in accounting for agricultural inventories and productive biological assets. This standard is effective for fiscal years beginning on or after January 1, 2022.For agricultural inventories, the standard provides an accounting policy choice to measure using either the cost model, or the net realizable value model when certain conditions are met.

If you are an agricultural producer who will be using the net realizable value model to measure your agricultural inventories, read this easy-to-understand resource to support your financial statement preparation process.

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