What a crazy month it has been. The snowstorm that took down so many trees in Winnipeg and beyond, the NHL Heritage Classic game between the Jets and the Flames and the further changes in standards. After many months of what seemed like silence, it has been very busy for the standard setters. This month’s update is a bit more technical in nature as a result of these changes. I want to ensure you stay up to date. Read on…
CSRS 4200 Compilation Engagements – Standard Approved!!
As noted in my special update earlier this month, the AASB approved Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements on October 7, 2019. CSRS 4200 replaces Section 9200 and is effective for compiled financial information for period ending on or after December 14, 2021. The AASB concluded that the revision to the standard were significantly different from the proposals in the Exposure Draft however they decided not to re-expose the changes as they do not significantly increase the practitioners’ work effort and responsibility. However, we have not yet seen the actual standard. It is expected CSRS 4200 will be issue in the February 2020 CPA Canada Handbook Assurance Update. I will send a link when available. In the meantime, you may want to participate in the CPA Canada Practitioner’s Pulse Webinar on November 21, 2019 that will discuss the new standard.
CAS 315 (Revised)
On September 16, 2019 the IAASB approved the revisions to ISA 315 (Revised) along with conforming changes. The revised ISA will be effective for audits of financial statement for periods beginning on or after December 15, 2021. What this means is that Canada will not be far behind in approving the revisions to CAS 315 (Revised) Identifying and Assessing the Risks of Material Misstatement though Understanding of the Entity and its Environment. The changes are significant and will impact your audit approach and documentation. I expect there will be implementation tools and guidance to come – I will send out links as they are available. In the meantime, if you want to read ISA 315 (Revised), follow the link below.
Redeemable Preferred Shares Issued in a Tax Planning Arrangement
I have spent a lot of time raising awareness of assurance standards but do not want to forget about important accounting standards. With that in mind, I wanted to remind you about amendments to Section 3856 Financial Instruments specifically related to preferred Shares issued in a tax planning arrangement. These changes were approved in back in September 2018; the updates are expected to be in the December 2019 release of the Handbook updates. In the meantime, here are a number of podcasts recently released to discuss implementation questions.
Ethics continues to be a very hot topic these days with the new CPA PD requirements and the recently released International Code of Ethics for Professional Accountants. I have delivered my Putting Ethics into Practice course to firms and the resulting discussions have been very interesting. In developing the course material, I came across this article which may be of interest to you. Dealing with Ethical Dilemmas with Confidence reminds us that professional ethics is fundamental in our industry. The article points out that the reality of making the right call is often not straightforward and provides a framework for moral prudence.
There is a lot to think about in the upcoming months and I am here to save you time and provide peace of mind on all the upcoming matters as well as day to day other matters. I will be at the Rev Up Your Practice conference in Ottawa this upcoming week and maybe will see you there. In the meantime, enjoy your week and let’s hope the snow holds off just a bit more.
Kirsten S. Albo, FCPA, FCA