Section 7600, Reports on the Application of Accounting Principles

Ef­fec­tive date:

Applies to reports dated on or after May 1, 2004, except for subsequent amendments.   

Overview

There may be differing interpretations as to whether and how existing generally accepted accounting principles apply to specific transactions and financial products. Management and others may consult with accountants other than the incumbent accountant on the application of accounting principles to those transactions and products on which the incumbent accountant has already provided guidance. A reporting accountant needs to be alert to possible undue pressure on the judgment and objectivity of an incumbent accountant and, accordingly, would seek to minimize the risk of giving inappropriate guidance because of limited knowledge of facts and circumstances. The guidance in Section 7600, Reports on the Application of Accounting Principles, helps to ensure that reporting and incumbent accountants have access to the same information.

This Section applies when an entity requests that a reporting accountant provide a written report or oral advice on: (i) the application of accounting principles to a specific transaction; or (ii) the type of opinion that may be rendered on the entity's financial statements; after having already obtained guidance from its incumbent accountant on this matter.

His­tory of Sec­tion 7600

Date

De­vel­op­ment

Com­ments

April 2002

Significant revisions were made to Section 7600.

The Recommendations in the revised Section apply to reports dated on or after May 1, 2004.

May 2022

Relates to conforming amendments to Other Canadian Standards resulting from the approval of CSQM 1. A new requirement in paragraph 14 was introduced. See Com­pleted Pro­ject.

The change is effective for engagements beginning on or after December 15, 2022.

Note: The above sum­mary does not in­clude de­tails of con­se­quen­tial amend­ments made as the re­sult of other pro­jects.

 

Amendments under consideration

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