AcSB Exposure Draft – Combinations – Initial Measurement and Related Disclosures
Jan 15, 2020
On January 15, 2020, the Accounting Standards Board (AcSB) released an Exposure Draft seeking feedback on its proposals to introduce new guidance on the accounting for a combination of not-for-profit organizations. These proposals apply to not-for-profit organizations applying the standards in Parts III of the CPA Canada Handbook – Accounting. Comments are requested by April 14, 2020.
The proposals in this Exposure Draft are as follows:
- The scope of Section 4449 would include a combination involving two or more NFPOs that are unrelated parties or related parties.
- The Section would include a set of criteria to determine when a combination is accounted for as a merger or as an acquisition.
- The Section would include initial and subsequent measurement, presentation and disclosure guidance on how to account for a merger or acquisition.
- The Section would apply on a prospective basis for combinations occurring on or after January 1, 2022 with early application permitted.
Review the press release and Exposure Draft on the ACSB's website.
