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News

IFRS - CPA Canada Image

CPA Canada Viewpoints: Impact of IFRS 15, Revenue from Contracts with Customers (Mining)

Jun 10, 2019

On June 10, 2019, CPA Canada is­sued a Viewpoints publication entitled “Impact of IFRS 15, Revenue from Contracts with Customers (Mining). Developed jointly by Chartered Professional Accountants of Canada (CPA Canada) and the Prospectors and Developers Association of Canada (PDAC), this paper addresses some of the practical challenges in applying IFRS 15 in the mining industry.

Items covered include:

  • Understanding the arrangement and identifying customer(s): How should a mining entity evaluate who its customer is?
  • Shipping and refining obligations: How should obligations associated with shipping a commodity to a customer, or providing refining services, be treated?
  • Transfer of control over commodities: How does a mining entity evaluate transfer of control for a commodity and the resulting revenue recognition?
  • Provisional pricing: How should a mining entity address the unique pricing issues associated with provisionally priced contracts?

Read the publication on the CPA Canada web­site.

IFRS - CPA Canada Image

CPA Canada Article – Auditing crypto-assets: be bold but recognize the risks, say experts

Jun 10, 2019

On June 10, 2019, CPA Canada is­sued an ar­ti­cle writ­ten by Taryn Abate, director of audit and assurance with the research, guidance and support department at CPA Canada which informs read­ers about auditing crypto-assets, including that CPA Canada has set up a new working group that is looking at how best to approach this new service area.

Read the ar­ti­cle on the CPA Canada web­site.

IFRS - CPA Canada Image

CPA Canada Publication – Introduction to accounting for cryptocurrencies under ASPE

Jun 10, 2019

On June 10, 2019, CPA Canada is­sued a publication entitled “Introduction to accounting for cryptocurrencies under accounting standards for private enterprises (ASPE)”. The publication includes: a brief overview explaining what cryptocurrencies are; a discussion of possible approaches to accounting for cryptocurrencies under existing ASPE; and a brief summary of the tax implications of transactions involving cryptocurrencies.

Read the publication on the CPA Canada web­site.

IFRS - AcSB Image

AcSB Exposure Draft – Annual Improvements to IFRS® Standards 2018-2020

Jun 07, 2019

On June 7, 2019, the Ac­count­ing Stan­dards Board (AcSB) issued its Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Stakeholders are encouraged to submit their comments by August 20, 2019.

The issues included in this cycle to date are minor amendments to (i) IFRS 1, First-time Adoption of International Financial Reporting Standards; IFRS 9, Financial Instruments; (iii) IFRS 16 — Leases; and IAS 41, Agriculture

For fur­ther de­tails, re­fer to the Exposure Draft on the AcSB’s web­site.

Securities - OSC Image

OSC takes action to reduce burden for mining issuers

Jun 06, 2019

On June 6, 2019, the On­tario Se­cu­ri­ties Com­mis­sion (OSC) announced that, effective immediately, mining issuers can request reviews of public technical disclosure before filing a preliminary short form prospectus. Mining issuers represent the largest population of Ontario head office reporting issuers, and this development will allow for material comments to be resolved promptly.

OSC staff will review mining issuers’ technical disclosure in documents previously filed on SEDAR and disclosure on issuers’ websites, including: current annual information forms; news releases and material change reports; current technical reports; and investor presentations. The pre-filing reviews will focus on any material issues that could affect the ability of an issuer to be granted a receipt from the OSC for a short form prospectus in a timely manner. 

Re­view the press re­lease and the Staff No­tice on the OSC's web­site.

IFRS - IASB Image

IASB member Mary Tokar's response to an academic paper on assets and liabilities published

Jun 06, 2019

On June 6, 2019, the International Accounting Standards Board (IASB) published IASB member Mary Tokar's response to an academic paper written and presented by Nicole L. Cade, Lisa Koonce and Kim I. Mendoza on assets and liabilities, discussing when they exist.

Read the response on the IASB’s web­site.

PSAS - PSAB Image

PSAB In Brief - A plain and simple overview of Consultation Paper 2, Reviewing PSAB’s Approach to International Public Sector Accounting Standards

Jun 06, 2019

On June 6, 2019, the Pub­lic Sec­tor Ac­count­ing Board (PSAB) published an In Brief with respect to its Consultation Paper 2, Reviewing PSAB’s Approach to International Public Sector Accounting Standards. Read this plain and simple overview to understand the options clarified in PSAB’s second International Strategy consultation paper

Re­view the In Brief on the PSAB's web­site.

IFRS - AcSB Image

AcSB Invites IASB’s Board Advisor on Insurance to visit Canada and attend a Panel Discussion on IFRS 17

Jun 06, 2019

On June 6, 2019, the Ac­count­ing Stan­dards Board (AcSB) announced that, on July 18, 2019, it will host a panel discussion featuring Darrel Scott, IASB Board Member and Advisor on the IASB’s Insurance project, and other experts from the financial reporting community. The AcSB is sponsoring this activity as part of its ongoing work to ensure Canadians are supported during the implementation phase of new standards, and also to ensure Canadian views are heard.

The Panel Discussion is expected to take place on July 18, 2019 at 1:30 pm – 4:00 pm ET at the CPA Canada Office. For further details, refer to the notice on the AcSB’s website.

United States Image

Senator Rubio and colleagues propose legislation that could result in delisting Chinese companies from U.S. Exchanges

Jun 05, 2019

On June 5, 2019, U.S. Senators Marco Rubio (R-FL), Bob Menendez (D-NJ), Tom Cotton (R-AR) and Kirsten Gillibrand (D-NY) introduced the Ensuring Quality Information and Transparency for Abroad-Based Listings on our Exchanges Act (the Equitable Act), which would (i) increase oversight of Chinese and other foreign companies listed on American exchanges and (ii) delist firms that are out of compliance with U.S. regulators for a period of three years.

The Equitable Act would serve to resolve the longstanding conflict over the inability of the Public Company Oversight Board to examine the work of Chinese auditors that report on the financial statements of US listed Chinese companies.

There are presently over 156 Chinese companies traded on US exchanges with a market capitalization of over $1.2 trillion, including widely held Alibaba Group Holdings (NYSE: BABA).

The PCAOB has long been blocked by China from inspecting Chinese accounting firms (including the Chinese member firms of the Big Four).  China argues that allowing the US to enforce US laws on Chinese soil against Chinese persons violates its national sovereignty and risks disclosure of state secrets. US investors suffer because fraud prone Chinese companies are not subject to the same regulatory oversight as other companies that trade on US exchanges. 

The Rubio proposal is modelled after an earlier proposal by Representative Mike Conaway of Texas who introduced legislation late in the last session of Congress that effectively expired with the new Congress in January. 

The proposal effectively says that Chinese companies will be kicked off US exchanges in three years if a breakthrough in PCAOB inspections does not take place.

Re­view the press release on Senator Rubio’s web­site and a related posting to the China Accounting Blog.

IFRS - FSB (Financial Stability Board) Image

Reporting on climate risk increasing but still needs more financial impact analysis

Jun 05, 2019

On June 5, 2019, The Task Force on Climate-related Financial Disclosures (TCFD) set up by the Financial Stability Board (FSB) to develop voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to lenders, insurers, investors and other stakeholders has published a second status report providing an overview of the extent to which companies in their 2018 reports included information aligned with the core TCFD recommendations published in June 2017.

The TCFD surveyed disclosures of over 1,100 firms from diverse sectors with broad geographical representation (142 countries).

It found that: (i) disclosure of climate-related financial information has increased since 2016, but is still insufficient for investors; (ii) more clarity is needed on the potential financial impact of climate-related issues on companies; (iii) of companies using scenarios, the majority do not disclose information on the resilience of their strategies; and (iv) mainstreaming climate-related issues requires the involvement of multiple functions.

The FSB has asked the TCFD to deliver another status report to the FSB in September 2020. The TCFD will undertake further work during the course of the next year to promote and monitor adoption of the TCFD recommended disclosures. It is also considering additional work to: (a) clarify elements of the TCFD’s supplemental guidance, (b) develop process guidance around how to introduce and conduct climate-related scenario analysis, and (c) identify business-relevant and accessible climate-related scenarios.

Please click for the press release and the status report on the FSB website.

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