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Part II - ASPE

AcSB Exposure Draft – Retractable or Mandatorily Redeemable Shares Issued in a Tax Planning Arrangement

Sep 29, 2017

On September 29, 2017, the Accounting Standards Board (AcSB) issued an Exposure Draft re-examining the accounting for retractable or mandatorily redeemable shares issued in a tax planning arrangement (formerly Redeemable Preferred Shares Issued in a Tax Planning Arrangement) under Part II of the CPA Canada- Handbook. Stakeholders are encouraged to submit their comments by January 15, 2018.

The AcSB proposes, subject to comments received following exposure, to amend FINANCIAL INSTRUMENTS, Section 3856, to modify the accounting for retractable or mandatorily redeemable shares issued in a tax planning arrangement.

The Board also proposes, subject to comments received following exposure, to amend:

  • SUBSIDIARIES, Section 1591, to add guidance on substantive rights; and
  • EQUITY, Section 3251, to present the effects of the amendments to FINANCIAL INSTRUMENTS, Section 3856, as a separate component of equity.

The Board plans to issue the final amendments in the first quarter of 2019, if no significant changes are required to the proposals after deliberating the comments received. In that case, the proposed effective date of the amendments would be for fiscal years beginning on or after January 1, 2020.

Review the Exposure Draft on the AcSB's website.

Basis for Conclusions – 2017 Annual Improvements to Accounting Standards for Private Enterprises

Sep 13, 2017

On September 13, 2017, the Accounting Standards Board (AcSB) released this document which sets out how the AcSB reached its conclusions on the 2017 Annual Improvements, and discussions on significant matters arising from comments received and issues raised in response to its Exposure Draft.

The Exposure Draft proposed that the amendments be effective for annual financial statements beginning on or after January 1, 2018, with earlier application permitted. Respondents agreed with this proposal and, accordingly, the AcSB finalized the effective date as proposed.

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

Consultation on Priorities for Part II of the Handbook

Jul 07, 2017

On July 7, 2017, the Accounting Standards Board (AcSB) issued a prioritization survey in respect of ASPE/Part II of the CPA Canada Handbook. Responses are requested by August 11, 2017.

In developing its 2016-2021 Strategic Plan and through various consultations, the AcSB has received feedback from stakeholders applying ASPE/Part II of the Handbook about their concerns with the standards. In response to this feedback, the AcSB is considering a number of topics for future projects.

This survey seeks stakeholders’ views on how the AcSB should prioritize the topics that it is considering. The AcSB will consider the results of this survey, together with its other research, to determine if and when to undertake projects on these topics.

Re­view the Survey on the AcSB's Web site.

FYI Article – Breaking New Ground: AcSB Sets Up Agriculture Advisory Group!

May 17, 2017

On May 17, 2017, the Accounting Standards Board (AcSB) released a summary describing the function of the new Agriculture Advisory Group.

The AcSB continues to gather information to understand the views of stakeholders in the agriculture sector including users, preparers and practitioners. There is a need for guidance because of the different ways similar items are reported in the financial statements of agriculture producers.

The Agriculture Advisory Group was set up to provide input on agriculture guidance being developed.

Review the article on the AcSB's website.

FYI Article – Accounting for Investments: Are You Ready For the Changes?

Apr 28, 2017

On April 28, 2017, the Accounting Standards Board (AcSB) released an article that provides an overview of the changes and includes links to resource materials for private enterprises applying the new guidance for the first time.

Are you a private enterprise preparing financial statements for an annual period beginning on or after January 1, 2016? If so, you are required to apply Section 1591, Subsidiaries, and Section 3056, Interests in Joint Arrangements.

Review the article on the AcSB's website.

Consultation on Priorities for Part II of the Handbook

Apr 20, 2017

On April 20, 2017, the Accounting Standards Board (AcSB) discussed an analysis of stakeholder feedback through prior outreach activities relating to Section 3840, Related Party Transactions.

The AcSB decided that the following themes merit further consultation with stakeholders:

  • accounting for business combinations under common control; and
  • determining how to measure transactions involving items that are not financial in nature.

The AcSB decided that further targeted outreach should be conducted to identify whether there are additional stakeholder concerns that should be considered before determining the scope of any future projects on this topic. The AcSB also directed the staff to consider similarities in the characteristics of combinations of private enterprises and not-for-profit organizations.

The AcSB discussed the complexities with the measurement of related party financial instruments and agreed to further deliberate this issue at its next meeting in the context of its Section 3856, Financial Instruments project.

Review the Executive Summary on the AcSB's Web site.

AcSB’s Vice-Chair, Karen Higgins, appointed as the Chair of its new Agriculture Advisory Group

Mar 07, 2017

This Group, in conjunction with the Private Enterprise Advisory Committee, will act in an advisory capacity to assist the AcSB in developing accounting standards for private enterprises in the agricultural sector.

The Agriculture Advisory Group will hold four or five meetings per year, including full-day working sessions and short interim teleconferences. Appointments are generally for a three-year term.

Review the Decision Summary on the AcSB's website.

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