The webcast discusses the IFRS 16 requirements relating to the recognition exemptions and provides Ms. Lloyd's insight on the scope exemptions, practical examples, and implementation information.

The topics discussed at the meeting included:

• IFRS Advisory Council — Role and recent activities
• Disclosure Initiative — Final amendments to IAS 7
• Different effective dates — IFRS 9 and the new insurance contracts standard
• Structured Electronic Reporting — What do investors need?
• Education Session — The new impairment requirements in IFRS 9
• Primary Financial Statements
• IFRS 16 — Update on the new standard

The full meeting summary is available on the IASB's website.

Traditionally the financial audit process has been opaque, operating in a black box environment with only a pass or fail judgement rendered by the auditor on an annual basis.

However, there has been a growing realization that increasing transparency into the audit process would be of benefit to audit committees, investors and other stakeholders.

A number of initiatives are underway internationally in order to increase transparency into the audit process. This publication outlines two initiatives: audit quality indicators (AQls) and transparency reporting.

Review the publication on the CPAB's Web site.

Traditionally the financial audit process has been opaque, operating in a black box environment with only a pass or fail judgement rendered by the auditor on an annual basis.

However, there has been a growing realization that increasing transparency into the audit process could benefit audit committees, investors and other stakeholders.

A number of initiatives are underway internationally to increase transparency into the audit process. The publication outlines two initiatives: enhanced auditor reporting and enhanced audit committee reporting.

Review the publication on the CPAB's Web site.

The CPAB has heard from audit committees that IT risk is a growing priority for boards and audit committees, yet they often feel ill-equipped to perform their oversight role in this area. Understanding the risks of the organization and asking the right questions of external auditors, internal auditors and management can help audit committees manage its IT risks and protect its information assets more effectively.

Review the publication on the CPAB's Web site.

At December 31, 2015, 286 audit firms were registered with CPAB. During 2015, CPAB inspected 39 firms in total and 179 engagement files. For the 14 firms inspected annually, CPAB inspected 144 files and identified significant inspection findings in 43 of these files. In addition, CPAB inspected 35 files at 25 other firms and identified significant inspection findings in 28 files.

The majority of CPAB’s total significant inspection findings in 2015 required the audit firm to carry out additional audit procedures to verify there was no need to restate the financial statements due to material error. The remaining findings required the audit firms to add considerable evidence to the audit file to show they had obtained sufficient and appropriate audit evidence with respect to a major balance sheet item or transaction stream. The results of carrying out additional audit procedures resulted in 11 restatements or six per cent of files inspected.

Review the Annual Report on the CPAB's Web site.

The majority of CPAB's total significant inspection findings in 2015 required the audit firm to carry out additional audit procedures to determine the need, if any, to restate the financial statements due to material error. The remaining findings required the audit firms to add considerable evidence to the audit file to show they had obtained sufficient and appropriate audit evidence with respect to a major balance sheet item or transaction stream.

The following audit quality themes noted in CPAB's November 2015 inspections report on the Big Four accounting firms also apply to the other firms inspected this year:

• Executing audit fundamentals
• Understanding business processes relevant to financial reporting
• Complex accounting estimates
• Internal controls
• Professional judgment and skepticism
• Identification of accounting issues

Review the press release, the Annual Inspections Report and the Highlights for Audit Committees on the CPAB's Web site.

The statement includes a comparison of materiality from the following organizations:

• CDP
• Climate Disclosure Standards Board (CDSB)
• Financial Accounting Standards Board (FASB)
• Global Reporting Initiative (GRI)
• International Accounting Standards Board (IASB)
• International Integrated Reporting Council (IIRC)
• International Organization for Standardization (ISO)
• Sustainability Accounting Standards Board (SASB)

In October 2015, the IASB published an exposure draft on the concept of materiality, which explains and illustrates the concept of materiality and helps preparers of financial statements when applying the concept.

For more information, see the statement on the CRD’s website.

One of the aspects Mr. Schnurr elaborated on was the status of the revenue transition resource group (TRG) formed jointly by the IASB and the FASB. In January this year, the IASB announced that it will no longer attend TRG meetings. The FASB declared in February that it will continue to address implementation issues and has scheduled three TRG meetings for 2016.

On this development, Mr. Schnurr commented:

While I am optimistic that the key practice issues that require standard setting have been identified through the implementation activities of preparers, auditors and standard setters, I am concerned that there are still a number of questions that would benefit from the TRG process. [...] Without joint participation of the IASB’s TRG in the coming scheduled FASB TRG meetings, there is a concern that IFRS 15 may be interpreted through a U.S. GAAP lens without the perspective of IFRS preparers.

He even went as far as suggesting that IFRS preparers could "provide input to the FASB staff and the FASB TRG participants to the extent they believe they have important factors that should be considered for discussion by the FASB TRG". At a minimum, he noted, he expected SEC registrants to monitor the TRG discussions and meeting minutes to inform their selection and implementation of reasonable policies.

Review the full text of Mr. Schnurr's speech on the SEC's website.

The budget proposes $120 billion of investment in infrastructure and job creation over the next ten years, including significant investments in public transit, clean technology, and First Nations, Inuit Peoples and the Metis Nation.

Some of the key features of the budget plan were:

• Mr. Morneau indicated that the deficit for 2015-2016 will be $5.4 billion while a deficit of $29.4 billion is predicted for 2016-2017. The deficit is projected to decline gradually reaching $14.3 billion by 2020-2021.
• This budget proposes to keep the small business tax rate at 10.5 percent after 2016 rather than reducing this rate to 9% by 2019 as announced in the previous budget.
• Where the exception to the deemed association corporation rules applies (i.e., an election not to be associated is made or the third corporation is not a CCPC), the budget proposes to make investment income derived from an associated corporation’s active business ineligible for the small business deduction and taxable at the general corporate tax rate.
• This budget contains proposals regarding certain recommendations of the Organisation for Economic Co-operation and Development (OECD) as set out in its final reports on its base erosion and profit shifting (BEPS) initiative, released in October 2015. 

A summary of the economic and tax highlights contained in the budget is outlined in our Canadian tax alert. 

For further details, we refer you to the Ministry of Finance website.