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Standard-setting activities & insights
Accounting Standards for Private Enterprises
Interests in Joint Arrangements
On September 5, 2014, the AcSB issued new Section 3056, Interests in Joint
Arrangements, and amendments to Section 3051, Investments. Section
3056 replaces Section 3055, Interests in Joint Ventures, and eliminates
the free choice in accounting for joint arrangements. The new and amended
Sections are effective for fiscal years beginning on or after January 1, 2016
with earlier application permitted.
Subsidiaries
On September 5, 2014, the AcSB also issued new Section 1591, Subsidiaries,
which replaces Section 1590, Subsidiaries, and AcG-15, Consolidation
of Variable Interest Entities. Section 1591 includes additional guidance to
judge when control is obtained through means other than equity interests. This
standard is effective for fiscal years beginning on or after January 1, 2016
with earlier application permitted.
Public Sector Accounting Standards
The Applicability of IPSASs to Government Business
Enterprises and Other Public Sector Entities
In August 2014, IPSASB has issued a Consultation Paper to seek comments on the
applicability of IPSASs to government business enterprises and other public
sector entities. Canadian stakeholders are encouraged to provide their comments
to IPSASB by December 31, 2014.
US GAAP
ASU 2014-15, Disclosure of Uncertainties About an
Entity’s Ability to Continue as a Going Concern
The new standard requires management to perform interim and annual assessments
of an entity’s ability to continue as a going concern within one year of the
date of issuance of the entity’s financial statements. Further, an entity must
provide certain disclosures if “conditions or events raise substantial doubt
about [the] entity’s ability to continue as a going concern.”
The ASU applies to all entities and is effective for annual periods beginning
after December 15, 2015, and interim periods thereafter, with early adoption
permitted.
Assurance
Reporting on Matters Beyond the Financial Statement: What You Need to Know
In this CPA Magazine’s column, Jacqui Kuypers, AASB staff member, discusses the
new standard, CSRS 4460, Reports on Supplementary Matters Arising from an
Audit or a Review Engagement, issued in June 2014. Get to know who is
affected by the standard, what it involves, and how reports on supplementary
matters will change.
Interim financial statements
On September 2, 2014, the AASB issued a Basis of Conclusions document in
respect of Section 7060, Auditor Review of Interim Financial Statements.
The document summarizes the process followed in developing this standard and the
conclusions reached by the AASB regarding significant comments received in
response to its ED. Section 7060 is effective for reviews of interim financial
statements for interim periods of fiscal years beginning on or after December
15, 2014.
Canadian standard–setting governance activities
AASOC: An Unseen Facet of Audit Standard Setting
In this CPA Magazine’s column, Phil Cowperthwaite,
AASOC member, explains the role of the Council in the
standard-setting process. Read Phil’s thoughts on how
AASOC enables the development of high-quality and
relevant standards in Canada – all the while protecting
the public interest.
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