Section 3051 - Investments
Effective date: |
January 1, 2011 except for subsequent amendments |
Published by the AcSB: |
December 2009 |
Overview
This Section establishes standards for:
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investments subject to significant influence; and
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measuring and disclosing certain other non-financial instrument investments (such as works of art and other tangible assets held for investment purposes).
Under ASPE, an investor with an investment in a subsidiary, interest in a joint venture or investment subject to significant influence has the ability to elect as its accounting policy to account for such investments using the cost or equity method. This Section sets out how the cost and equity method are applied.
History of Section 3051
Date |
Development |
Comments |
December 2009 |
Part II of the CPA Canada Handbook issued |
Effective for fiscal years beginning on or after January 1, 2011. |
April 2010 |
Minor amendments to address certain drafting issues. |
Paragraph .16, has been added to provide guidance concerning recognition of an equity accounted investee's losses in excess of the enterprise's investment. |
October 2012 |
Paragraph .25A, has been added to provide guidance on the accounting for dilution gains and losses. |
|
September 2014 |
This Section has been amended to:
|
|
October 2015 |
Annual improvements
|
Paragraph 3051.38, has been amended to require the disclosure of the amount of any impairment loss or reversal of a previously recognized impairment loss. Effective for fiscal years beginning on or after January 1, 2016. Earlier application is permitted. |
December - 2016 |
Effective for fiscal years beginning on or after January 1, 2018. Earlier application is permitted. | |
June 2019 |
Effective for fiscal years beginning on or after January 1, 2020 with earlier application permitted. | |
April 2020 |
At its meeting on April 15, 2020, as a result of the impact of the Covid 19 pandemic, the AcSB decided to defer the effective date of these amendments to Section 3051 by one year to fiscal years beginning on or after January 1, 2021. Earlier application continues to be permitted. These changes to Section 3051 were issued to the CPA Canada Handbook – Accounting Part II on August 1, 2020. |
Note: The above summary does not include details of consequential amendments made as the result of other projects.
Amendments under consideration
- None
Private Enterprise Advisory Committee Meeting Notes
- November 7, 2017 - Items to Consider as Part of the 2019 Annual Improvements: Application of the Cost Method to Interest in Jointly Controlled Enterprises
- April 14, 2016 - Responses received on the AcSB’s Exposure Draft, “Subsidiaries and Investments”
- June 11, 2015 - 2015 Annual Improvements: Proposed amendments to Section 1582, 3051 and 3462, be approved as exposed
- April 1, 2015 - Accounting for a subsidiary and an investment using the cost method
- December 17, 2014 - Subsidiaries
- September 16, 2014 - Accounting for a subsidiary when the cost or equity method is used