Compilation Engagements (Amendments to Section 9200) [Completed]
Effective date: |
CSRS 4200 will be effective for compiled financial information for periods ending on or after December 14, 2021. The AASB added the new Section CSRS 4200 to the Handbook in February 2020. |
Last updated: |
February 2020 |
Overview
Canadian practitioners had indicated that there was a need for a clarified standard that would better meet their needs by providing requirements and guidance on specific matters that have caused confusion and ambiguity in performing compilation engagements.
Accordingly, as part of this project, the Board required its staff to: (i) conduct research on examples of compiled financial statements issued by public accountants; and (ii) hold consultations with bankers and other lenders, legal counsel and Association of Insured Chartered Accountants and practitioners. Key issues addressed also included: (iii) the perception of the marketplace with respect to the level of assurance taken versus assurance given; and (iv) the usefulness of financial statements compiled using a generally accepted financial reporting framework versus a less rigorous framework or no framework.
The project, thus, included determining the nature and extent of revisions that should be made to Section 9200, Compilation Engagements, and considering adoption of International Standard on Related Services (ISRS) 4410 (Revised), Compilation Engagements, which was issued by the IAASB in March 2012. ISRS 4410 (Revised) is effective for compilation engagement reports dated on or after July 1, 2013.
On September 4, 2018, the AASB issued an Exposure Draft of a proposed new standard dealing with engagements to compile financial information that would replace the existing Section 9200, Compilation Engagements. Stakeholders were encouraged to submit their comments by November 30, 2018.
At its meeting on October 7-8, 2019, the AASB approved Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements. CSRS 4200 will replace Section 9200, Compilation Engagements, and Assurance and Related Services Guideline (AuG) 5, Compilation Engagements – Financial Statement Disclosures. CSRS 4200 will be effective for compiled financial information for periods ending on or after December 14, 2021.
The AASB concluded that the revisions to the standard were significantly different from the proposals in its Exposure Draft, “Compilation Engagements." The Board decided not to re-expose the changes as they do not significantly increase the practitioner’s work effort and responsibility. The Board concluded re-exposure would not reveal any new information of which it had not already been made aware. Re-exposure would also unnecessarily delay the implementation of the standard.
Following confirmation by the Auditing and Assurance Standards Oversight Council that the AASB had followed due process with proper regard for the public interest with respect to the new standard, the AASB added the new Section CSRS 4200 to the Handbook in February 2020.
Other developments
February 2020
In February 2020, the AASB added the new Section CSRS 4200 to the Handbook.
January 2020
On January 31, 2020, the AASB released the Basis for Conclusions, which summarizes the process the AASB followed in issuing CSRS 4200, Compilation Engagements, and the Board’s conclusions regarding significant comments received in response to its Exposure Draft.
July 2019
In July 2019, the AASB staff updated this project to note that the Board expects to finalize the Handbook material in Q4/2019.
September 2018
On September 4, 2018, the AASB issued an Exposure Draft of a proposed new standard dealing with engagements to compile financial information that would replace the existing Section 9200, Compilation Engagements. Stakeholders are encouraged to submit their comments by November 30, 2018.
June 2018
In June 2018, the AASB staff updated this project to indicate that the AASB expects to issue an exposure draft in Q3/2018.
June 2013
In June 2013, the AASB discussed the results of the its User Survey and asked staff and the Task Force to consider holding further consultations with users of compiled financial statements and possibly practitioners, to obtain more in-depth feedback on issues identified by the survey.
November 2012
In November 2012, the AASB issued a User Survey to lending officers to obtain their views on compiled financial statements, accompanied by a Notice to Reader, and their significance in making lending decisions for SMEs. Comments requested by December 7, 2012.
March 2012
In March 2012, the IAASB issued a Press Release and ISRS 4410 (Revised) together with a staff-prepared Basis for Conclusions document.
December 2011
In December 2011, the IAASB approved ISRE 4410 (Revised).
September 2011
In September 2011, the AASB discussed matters related to the IAASB’s project to revise ISRS 4410. The AASB also approved a project proposal to revise its Section 9200. Initially, this project focused on conducting research to obtain the views of users of compiled financial statements on whether their needs are being met.
November 2010
In November 2010, the AASB issued an ITC to encourage Canadian stakeholders to provide input on the IAASB’s recent ED of proposed ISRS 4410 (Revised). To assist stakeholders, the Appendix to the ITC compares key aspects of the proposed ISRS 4410 (Revised) and current Section 9200. These differences relate to the following issues: identification of the purpose (use) of the financial statements; identification of the applicable financial reporting framework; acknowledgment by management of its responsibilities; applicability of quality control standards; documentation; and the practitioner’s compilation report. Comments requested by February 1, 2011.