Français | Archives

Deloitte
 
Canada | December 22, 2014
Stay on top of financial reporting

This is our last 2014 issue. As has been the tradition, Financial Reporting Insights will be suspended for a few weeks so our editorial team may enjoy the holiday break. It will resume publishing in February. We'd like to wish you and yours the very best of the Holiday Season

Warm regards,



Chantal Rassart
Partner | Audit Knowledge Management Officer

Looking ahead to 2015

In the last edition of Financial Reporting Insights, Clair provided comments on financial reporting developments applicable to 2014 year-ends. Now she looks ahead and gives us a little thought to what is in store for next year and beyond.

There are a number of amendments that become effective on a mandatory basis in 2015. In addition we have three significant new standards to be aware of (even though not effective on a mandatory basis until 2016-2018). Ongoing activity in the standard-setting pipeline could also bring important changes to the look and feel of your financial statements in years to come.

First, let’s consider the immediate future and what’s effective on a mandatory basis for 2015. The main items here are amendments effected through the IASB’s Annual Improvement Project or AIP – the project used by the IASB to effect discrete amendments and clarifications to existing standards. Both the 2010-2012 and 2011-2013 AIP cycles incorporate amendments which have an effective date of July 1, 2014 – meaning fiscal 2015 for those reporting issuers with calendar year-ends. The amendments cover a broad array of standards including clarifications relating to IFRS 13 Fair Value Measurement, amended disclosures under IAS 24 Related Party Disclosures and a clarification relating to the interplay of IFRS 3 Business Combinations and IAS 40 Investment Property. Of note there are two further amendments (IFRS 2 Share-based Payment and IFRS 3) for which the effective date is for a transaction date on or after July 1, 2014. Outside of the AIP, IAS 19 Employee Benefits was amended to clarify the appropriate treatment of contributions received from employees. This change also takes effect for years beginning on or after July 1, 2014.

In terms of the more distant future, the IASB finalized a joint project with the FASB in 2014 with the issuance of IFRS 15 Revenue from Contracts with Customers. The effective date of this standard is January 1, 2017 and it is expected to be incorporated into the CPA Canada Handbook early next year. The standard has a fairly long lead time until its effective date and this time frame is justified by the length of the standard and the extent of the potential analysis that may be necessary in order to implement the new requirements. Another major project finalized in 2014 was IFRS 9 Financial Instruments with the impairment requirements being concluded this year. The effective date for IFRS 9 is January 1, 2018 and, as with IFRS 15, it is expected that this will be incorporated into the CPA Handbook in the first quarter of 2015. The remaining major standard issued in 2014 was the interim standard that is specific for entities with rate-regulated activities. The IASB issued IFRS 14 Regulatory Deferral Accounts in January and we can expect to see first-time adoption activities take off for this group of Canadian entities as they embark on the road to IFRS transition.

While all of this is probably more than enough to think about for now, I’ll close off with some comments on the IASB’s project on leases, a significant project that remains in progress and for which a final standard is expected in 2015. This item is the IASB’s project on leases. After two exposure drafts, the final leasing standard will effectively result in most leases being brought onto the statement of financial position. In other words, off balance sheet financing will be largely eliminated. You can find more on the leasing standard as developments continue.

If you want to know more about any of these, or any other, financial reporting developments please don’t hesitate to reach out to Chantal, myself or your local Deloitte contact. In the meantime, all the very best for the holidays and I look forward to sharing more financial reporting insights with you in 2015.

Clair Grindley, CPA, CA, ACA
Partner | Deputy Leader, Canadian IFRS Centre of Excellence
My LinkedIn

Standard-setting activities & insights

International Financial Reporting Standards
Accounting Standards for Private Enterprises
Public Sector Accounting Standards
US GAAP
Securities regulatory matters
Assurance
Canadian standard–setting governance activities

Webcasts & learning resources

Upcoming events
Past events

Publications & tools

Readiness Self-Assessment: IFRS 15  – Are you ready yet?
A State of Change – Not-for-profit newsletter
The Value Shift – Why CFOs should lead the charge in the digital age
A summary of the November 20–21 meeting of the PCAOB’s Standing Advisory Group

Business news highlights

Canadian news
U.S. news
International news
 

Standard-setting activities & insights

International Financial Reporting Standards

IFRS Round Up 2014: Reporting alert
This CPA Canada Financial Reporting Alert summarizes the new standards, interpretations, narrow scope amendments and annual improvements effective for annual reporting periods beginning January 1, 2014, and beyond, and proposes an action plan for implementing these changes.

Learn more
 

FASB and FAF comment on voluntary disclosure of IFRS information
On December 9, 2014, the Financial Accounting Foundation (FAF) and the FASB have issued a statement welcoming a possible voluntary disclosure of IFRS-based financial reporting information in addition to US GAAP-based information.

Learn more
 

IFRS Discussion Group – Report on September 11, 2014 Meeting
On December 8, 2014, the AcSB released its report on the September 11, 2014 meeting which included discussion points on several standards including: (i) IFRS 3, IAS 16 and IAS 37: Contingent Consideration in an Asset Purchase; (ii) IFRS 3, IFRS 15, IAS 18 and IAS 37: Contingent Consideration in an Asset Sale; (iii) IFRS 1: Carve-out Financial Statements; (iv) IAS 19 and IAS 21: Foreign Exchange Gains and Losses on Defined Benefit Pension Plan Obligations; (v) IAS 19: Refundable Tax Accounts in Retirement Compensation Arrangements; (vi) IAS 32, IAS 33 and IFRIC 17: Dividend Reinvestment Plans; (vii) Disclosures of Contractual Commitments (viii) IFRS 9 and IAS 39: Flow-through Shares with Attached Share Purchase Warrants; (ix) IAS 33: Escrow Share Arrangements; and (x) IFRS 11: Application Issues and Process of IFRS Interpretations Committee.

Learn more
 

Accounting Standards for Private Enterprises

Basis for Conclusions – 2014 Improvements to Accounting Standards for Private Enterprises
On December 5, 2014, the AcSB published the Background Information and Basis for Conclusions in respect of the 2014 Improvements to Accounting Standards for Private Enterprises Exposure Draft. This document sets out how the AcSB reached its conclusions in response to comments received on the Exposure Draft and indicates how the Board dealt with the issues raised.

Learn more
 

FYI Article – 2014 Annual Improvements: Clarifying the Standards
On December 2, 2014, the AcSB released an article that discusses the AcSB’s recently issued amendments to Section 3856 regarding hedging and disclosure of impairments.

Learn more
 

Public Sector Accounting Standards

Basis for Conclusions – Amendments to the Introduction
On December 1, 2014, PSAB published the Amendments to the Introduction, Basis for Conclusions, CPA Canada Public Sector Accounting Handbook. This document sets out how PSAB reached its conclusions. As well, it sets out significant matters arising from comments received in response to its Exposure Draft and indicates how the Board dealt with the issues raised.

The Introduction has been amended to: (i) introduce the term public sector entity; (ii) define a government component; (iii) amend the definition of a government organization; (iv) include specific definitions of all types of government organizations and partnerships; and (v) provide guidance as to the basis of accounting to be used by government components, organizations and partnerships, where the partnerships have two or more public sector entity partners. Editorial changes have been made in other standards as a consequence of the amendments to the Introduction.

Learn more
 

US GAAP

US GAAP Plus Weekly Roundup
Don't miss Weekly Roundup, prepared by Deloitte US’ Accounting Standards & Communications group, is a digest of news, developments, and Deloitte publications related to U.S. and international accounting topics.

Sign up now
 

Securities regulatory matters

Canadian securities regulators introduce amendments to oil and gas disclosure
On December 4, 2014, the CSA introduced amendments to National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities and related forms, which are designed to improve and clarify the disclosure of reporting issuers in the oil and gas industry.

The amendments are a result of both the CSA’s ongoing evaluation of reporting issuer disclosure and the incorporation of industry feedback. The amendments promote improved disclosure of resources other than reserves, provide increased flexibility for oil and gas issuers that operate and report in different jurisdictions or recover product types not previously recognized by NI 51-101, and align NI 51-101 with the amended Canadian Oil and Gas Evaluation Handbook.

Learn more
 

Assurance

Podcast summary of the IAASB meeting held on December 1-5, 2014
On December 1-5, 2014, the IAASB held a meeting and the discussion points included: (i) approving revisions to ISA 720 The Auditor’s responsibilities relating to other information; (ii) agreeing on two new Exposure Drafts, ISA 800 Special considerations—audits of financial Statements prepared in accordance with special purpose frameworks and ISA 805 Special considerations—audits of single financial statements and specific elements, accounts or items of a financial statement; (iii) advancing the work on ISA 600 Special considerations - audits of group financial statements (Including the work of component auditors) and ISA 220 Quality control for an audit of financial statements.

Learn more
 

AASB Decision Summary – November 24-25, 2014
On December 5, 2014, the AASB released an executive summary of discussions and decisions with respect to the topics addressed at the meeting. Discussions included: (i) Auditor Reporting; (ii) Financial Statement Disclosures; (iii) Responsibilities Relating to Other Information; (iv) IAASB Projects; (v) Association; (vi) Special Reports — Assurance on Compliance with Agreements, Statutes and Regulations; (vii) Standards for Review Engagements.

Learn more
 

Canadian standard–setting governance activities

Minutes of Meeting – October 23-24, 2014
On December 5, 2014, the Auditing and Assurance Standards Oversight Council released the minutes of its October meeting where it discusses the activities and performance of the AASB and the Independence Task Force, non-authoritative guidance issued by CPA Canada’s Research, Guidance and Support Group, and unification of the accounting profession.

Learn more
Back to top
 

Webcasts & learning resources

Upcoming events

Date Title
January 8, 2015 Directors' Series
Focus on the audit committee

This session will focus on issues surrounding the quality of financial reporting and disclosure, the role of the audit committee around risk and control, audit quality, a regulatory update on the OSC’s priorities for 2015, and much more.

This complimentary session is designed for Boards of Directors and C-level executives, and includes insights on corporate governance issues from seasoned corporate directors, company executives and other professionals.
 
Register
 
Date Title
January 14, 2015 Public Sector Accounting Standards update
During this session, our Deloitte professionals will share their insights on potential challenges arising from some of the following:
Proposals included in the Retirement Obligations Statement of Principles
Comments and implications related to the Re-exposure Draft of Related Party Transactions
Reminders on the application issues related to liabilities for contaminated sites
Updates on various other projects on PSAB’s active project plan
Updates from the Public Sector Accounting Discussion Group
 
Register
 

Past events

Date Title
December 18, 2014
Deloitte
Bringing clarity to SEC developments
Highlights of the AICPA National Conference on Current SEC & PCAOB Developments. Topics discussed include a range of regulatory matters, accounting topics and auditing developments.

Read our U.S. firm's summary:
December 18, 2014
Deloitte U.S.
Quarterly accounting roundup — an update on important developments
Do you know what issues the standard-setters and regulators have been addressing lately? We've been monitoring their projects and discussed:
Accounting, standard setting, and reporting developments for the quarter.
Recent positions on accounting and reporting of the FASB, IASB, SEC, and PCAOB.
Highlights from the annual AICPA Conference on SEC and PCAOB developments.
Other hot topics.
December 10, 2014
Deloitte
Bringing clarity to ASPE developments: It’s that time of year again...
During this webcast, our Deloitte presenters combined their technical knowledge and applied experience to discuss ASPE accounting changes and other key areas for consideration. Staying on top of accounting changes allows you to think strategically and be proactive with implementation.
December 10, 2014
OSC Webcast
Continuous Disclosure Obligations
This seminar included the review of obligations under NI 51-102, including MD&A observations, material change reporting, related party transactions, information on emerging market issues and other relevant topics.
December 4, 2014
Deloitte webcast
Winning with the M&A IT Playbook
The M&A transaction process can be fraught with pitfalls and roadblocks. Of all the potential pitfalls, one that frequently poses the biggest challenge is post-merger information technology (IT) systems integration. In this webinar we have compiled a practical M&A IT guide to help CIOs and other IT stakeholders avoid common pitfalls, plan more effectively, and help companies achieve their M&A goals.
December 2, 2014
AcSB Webinar
Improvements to Not-for-Profit Standards: Stay Up-to-Date on the Process!
Tune in to this AcSB and PSAB joint webinar to understand the views of stakeholders relating to the Statement of Principles that was issued in April 2013 that proposed improvements to standards followed by not-for-profit organizations (NFPOs) in both the private and public sectors.
November 28, 2014
CPA Canada Webinar
Financial Reporting in the Mining Industry – Trends and Practices
During this one hour webinar, the following financial reporting trends and practices in the mining industry are considered:
Impairment of non-financial assets
Investments (IFRS 10 and IFRS 11)
Stripping costs in the production phase of a surface mine (IFRIC 20)
Estimates and judgments
Non-GAAP measures
November 27, 2014
CPA Canada Webinar
Developments in IFRSs: Fall 2014 Update
Keeping up-to-date with IFRS is important for Canadian public companies, their advisors and the users of their financial statements. It is also important for those private enterprises that use IFRS in preparing financial statements. This webinar provides an up-to-date briefing on IFRS from Karen Higgins, National Director of Accounting Services, Deloitte and AcSB Vice-Chair.
November 26, 2014
Deloitte
Q4 IFRS technical update
In this Q4 update, combining technical knowledge with applied experience, our specialists discuss key accounting issues to consider when preparing the fourth quarter financial statements. They also provide an update on key financial reporting developments and on the IASB's project plan.
November 20, 2014
CPA Canada webinar
Redeemable Preferred Shares Issued in a Tax Planning Arrangement
During this webinar, the AcSB:
provided an overview of the proposals set out in its recent Exposure Draft;
discussed background information and rational for the Exposure Draft proposals; and
outlined the effects of the proposals.
November 13, 2014
CPA Canada webinar
IFRS 15 Revenue from Contracts with Customers
This one hour webinar provided a general overview of the standard; discuss some key changes from current accounting practices; highlight some industry-specific considerations; and suggest a general plan of action (including operational considerations).
November 12, 2014
OSC Webcast
Mineral Disclosure Best Practices
This seminar is designed to assist mining reporting issuers with improving their public technical disclosure and to provide an opportunity to hear directly from the regulator about common disclosure pitfalls and challenges through the use of case studies and examples of good disclosure practices and guidance. Findings from recent OSC Staff Notices have been discussed as well as an overview of website disclosure, use of social media, and tips on prospectus filings.
 
Back to top
 

Publications & tools

Readiness Self-Assessment for Directors: IFRS 15 Revenue from Contracts with Customers – Are you ready yet?

Publication date: December 2014
As you are likely aware, IFRS 15 was issued by the IASB in May 2014. This new Standard is applicable to all types of contracts with customers in all industries, therefore it may have broad and significant implications on entities. Entities will need to begin considering early on, not only the financial reporting implications, but the extent to which changes may be required in processes, IT systems, internal controls, as well as impacts it may have on key performance indicators, loan covenants, and future contract terms and conditions, to name a few. Although still in the early stages of their implementation plan, some entities have already begun to encounter a number of unforeseen challenges, which further substantiates the need to begin the implementation process early. As such, this publication is aimed at providing Directors with a series of key questions to assist in understanding the impacts and considerations related to the implementation of IFRS 15.

Read more
 

A State of Change – Not-for-profit newsletter

Publication date: December 2014
In this age of rapid technological advances, having a robust and comprehensive data privacy and cyber security strategy is no longer optional, but fundamental, to a not-for-profit organization’s success. This issue of the newsletter includes two articles addressing these rising technology concerns: one focuses on leading practices in creating a proactive privacy framework, and the other on considerations in formulating a cyber security plan. This issue also includes an article on withholding taxes on foreign services, and how a not-for-profit organization may be affected by the requirements of Regulation 105.

Read more
 

CFO Insights: The Value Shift – Why CFOs should lead the charge in the digital age

Publication date: December 2014
Research by OpenMatters with input from Deloitte, examining 40 years of data from the Standard & Poor’s 500, finds that investors assign higher valuations to organizations that embrace emerging technologies to create digital networks. This change is part of a broader trend of corporate value shifts from the predominance of tangible assets, including plant, property, equipment and financial assets, to value from intangible assets.

In this issue, as digital technologies increasingly disrupt age-old sources of value, we look at how CFOs can tap into this value shift through business model innovation.

Read more
 

Heads Up — A summary of the November 20–21 meeting of the PCAOB’s Standing Advisory Group

Publication date: December 2014
This issue reviews developments discussed at the meeting, including the PCAOB’s current and future standard-setting activities, its efforts related to fraud detection, its consideration of the new revenue recognition standard, and the staff’s summary of comments received on its consultation paper.

Read more
 
Back to top

Business news highlights

We continuously review relevant business e-publications and publish below a selection of newsworthy items that we believe you will find interesting and relevant.

Canadian news

Date Publication Article
2014/12/03 CPA Canada Winners of the 2014 Awards of Excellence in Corporate Reporting
2014/12/03 Dentons Incrementalism and good faith in contract law – the new duty of honesty (and beyond?)
Back to top
 

U.S. news

Date Publication Article
2014/12/12 CFO.com Revenue Recognition Changes Could Spur SEC Fraud Probes
2014/12/10 Journal of Accountancy Keep pushing forward on revenue recognition implementation, experts say
2014/12/09 Journal of Accountancy FASB considering revenue recognition delay to reduce uncertainty
2014/12/09 SEC
FASB
PCAOB
IASB
Speeches available from the annual AICPA conference on current developments
2014/12/09 Accounting Today IASB and FASB Look Beyond Convergence
2014/12/09 Journal of Accountancy Would companies use voluntary, additive IFRS option?
2014/12/08 Journal of Accountancy SEC official: PCAOB’s standard setting too slow
2014/12/08 Entrepreneur Where People Belong on a Company's Balance Sheet
2014/12/05 Deloitte U.S. Heads Up: A Summary of the November 20–21 Meeting of the PCAOB’s Standing Advisory Group
2014/12/05 CFO.com Another Look at Auditor Nightmares
2014/12/05 NYSE Governance Services Seven Lessons For Boards From Securities Lawsuits
2014/12/05 Center for Audit Quality Select Auditing Considerations for the 2014 Audit Cycle (14-page PDF file)
2014/12/04 United States Chamber of Commerce
SEC
SEC may propose a new approach to IFRS in the United States
Watch the webcast (Mr Schnurr's session begins at approximately 2:07:00).
2014/12/04 Financial Accounting Foundation FAF/FASB/GASB Strategic Plan
2014/12/03 The Wall Street Journal U.K. Targets Tech Firms With "Google Tax" (Subscription required)
2014/12/03 PCAOB The Role of Audit in Economic Growth by James R. Doty, Chairman
2014/12/01 Accounting Today Innovation in financial reporting: Gaining relevance in the 21st century
2014/12/01 The New York Times Tattletales Embraced as Whistle-Blower Programs Gain Support
2014/11/26 Compliance Week Ideas for Guidance on Auditing Estimates Draw Mixed Reviews
Back to top
 

International news

Date Publication Article
2014/12/13 The Economist Corporate transparency: The openness revolution
2014/12/08 IFAC Islamic Finance: A Trend Too Significant to Ignore
2014/12/02 DTTL Robert Bruce, a Deloitte journalist, interviews — Insights on Integrated Reporting
2014/12/02 OECD Scale of international bribery laid bare by new OECD report
Review the OECD Foreign Bribery Report
2014/12/02 Accountancy Age IASB seeks to widen global investor engagement in IFRS
Back to top

Chief Editor

Chantal RassartChantal Rassart, CPA, CA
Partner, Audit Knowledge Management Officer

Linkedin profile
Tell us what you think