Part II - ASPE

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.

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.

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.

Handbook Update – Revenue – Upfront Non-refundable Fees or Payments

Nov 15, 2022

On November 15, 2022, the Accounting Standards Board (AcSB) issued an amendment to Section 3400, "Revenue", to defer the effective date for previously issued amendments relating to upfront non-refundable fees or payments from fiscal years beginning on or after January 1, 2022, to fiscal years beginning on or after January 1, 2025. Earlier application is permitted.

Review the amendments on the CPA Canada's website.

Handbook Update – AcG-20, Customer’s Accounting for Cloud Computing Arrangements

Nov 15, 2022

On November 15, 2022, the Accounting Standards Board (AcSB) issued new Accounting Guideline AcG-20, "Customer’s Accounting for Cloud Computing Arrangements", applicable to private enterprises and not-for-profit organizations. This new Guideline is effective for fiscal years beginning on or after January 1, 2024 with earlier application permitted.

Review the Accounting Guideline on the CPA Canada's website.

AcSB Exposure Draft – Improvements to Accounting for Common Control Combinations

Nov 01, 2022

On November 1, 2022, the Accounting Standards Board (AcSB) released proposed amendments to "Related Party Transactions", Section 3840. The proposed amendments address accounting for a combination between enterprises or businesses under common control and financial assets acquired or financial liabilities assumed in a combination between enterprises under common control. Comments are requested by January 31, 2023.

Review the exposure draft on the AcSB's website.

AcSB Exposure Draft: Revenue – Upfront Non-refundable Fees or Payments

Jun 30, 2022

On June 30, 2022, the Accounting Standards Board (AcSB) is­sued an Ex­po­sure Draft, Revenue – Upfront Non-refundable Fees or Payments, which proposes amendments to Section 3400, Revenue, in Part II of the CPA Canada Handbook. The amendments would also apply to not-for-profit organizations (NFPOs) applying the standards in Part III of the Handbook, as relevant. Com­ments are re­quested by August 15, 2022.

The proposed amendments would defer the effective date for upfront non-refundable fees or payments application guidance from fiscal years beginning on or after January 1, 2022, to fiscal years beginning on or after January 1, 2025.

Re­view the fol­low­ing on the AcSB's web­site:

In Brief – AcSB Exposure Draft – Customer’s Accounting for Cloud Computing Arrangements

Apr 14, 2022

On April 14, 2022, the Accounting Standards Board issued an In Brief, which provides an overview of Exposure Draft, "Customer’s Accounting for Cloud Computing Arrangements".

The proposals aim to simplify the accounting for cloud computing arrangements while ensuring entities can provide relevant information to their users.

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

AcSB Exposure Draft – Customer’s Accounting for Cloud Computing Arrangements

Mar 17, 2022

On March 17, 2022, the Accounting Standards Board (AcSB) released proposed Accounting Guideline applicable to private enterprises and not-for-profit organizations. The proposals take a pragmatic approach by providing accounting policy choices to address a range of stakeholders’ concerns when accounting for cloud computing arrangements. They also clarify the application of existing Sections. Comments are requested by June 20, 2022.

The proposed Guideline:

  • clarifies that an enterprise may determine a method on a rational and consistent basis for allocating arrangement consideration to significant separable elements in a cloud computing arrangement;
  • clarifies that an enterprise applies GOODWILL AND INTANGIBLE ASSETS, Section 3064 to account for the significant elements, unless the elements are tangible assets or rights to use tangible assets;
  • provides an optional simplification approach to permit an enterprise to expense as incurred the expenditures related to the elements in a cloud computing arrangement within the scope of Section 3064;
  • provides factors to assist an enterprise that does not apply the simplification approach in applying the control principle in Section 3064 for determining whether the cloud computing arrangement includes a software intangible asset; and
  • provides an accounting policy choice to either:
    • apply an exception to capitalize directly attributable expenditures on implementation activities when the arrangement is a software service (i.e., when no intangible asset exist) and to present such costs as prepaid expenses; or
    • continue to expense as incurred such expenditures in accordance with existing requirements in Section 3064.

The proposed Guideline would also require an enterprise to disclose information on how the cloud computing arrangement is accounted for in its financial statements.

The proposed Guideline would apply for fiscal years beginning on or after January 1, 2023, with early application permitted. Enterprises would apply the proposed Guideline retrospectively to cloud computing arrangements that exist on or after the beginning of the earliest period presented in the financial statements in which the enterprise first applies the Guideline. 

Review the Exposure Draft on the AcSB's website.

Correction list for hyphenation

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