July 2020 Update

July 31, 2020 / Monthly Newsletter

In this Update:  CSRS 4200; Professional Development; Firm Risk Management; ASPE Standards; PSAS Standards;

Greetings,

Here it is already at the end of July. It seems that only last week I was waiting for March to end. Where does time go? And why does it go so quickly? Unfortunately, I don’t have the answers to these questions so have decided to focus on the future and what needs to be done to manage a practice in an efficient and effective manner. The theme for this month is being prepared. Read on…

CSRS 4200 Compilation Engagements (CSRS 4200)

The new compilation standard is effective for periods ending on or after December 14, 2021. While that may seem like a long time away, in fact, it is only 18 months from now. Talk about time moving quickly, the effective date will be here quicker than you think but there are many things you can start now to get ready. CPA Canada recently hosted a Practitioners Pulse Webinar on CSRS 4200 and the real-life experiences of three practitioners who have implemented the standard and their experiences in doing so.  They had very practical responses to the questions posed on implementation. It is worth spending an hour of your time listening to this one.  

ACCESS WEBINAR HERE

Professional Development

I believe it is critical to develop a project management plan over the next 18 months as the new standard could have a significant impact on your practice. I will be delivering an online training course to help practitioners learn how to implement the new standard in an effective and efficient manner through recognizing where business decisions are required, determining the approach to meeting requirements and developing an action plan between now and the effective date. There will be several sessions available starting mid-September. Stay tuned for details. In the meantime, you can check out a detailed description of the course on my website. I will let you know when dates have been finalized and registration is open. 

READ COURSE DESCRIPTION HERE

Risk Management (Firm Risk Management)

Another area to be prepared relates to practice liability.  Even though we may prefer not to think of it, it is important to think of risk as we continue to serve clients through these time. As much as we don’t like to think about it, unfortunately claims are a part of business. CPA Professional Liability Plan Inc. believes there will be increased and unique claims risks that will arise over the next months and years. They have a unique perspective in their recent article on this topic which includes issues to consider as you perform engagements.   

READ ARTICLE HERE

Withdrawing from an Engagement (Firm Risk Management)

Speaking of business risk and being prepared, no matter how perfect the partnership between a firm and its client may seem, as with all things in business, sometimes the partnership does not work out. This can leave both parties questioning whether a practitioner can withdraw from the engagement. An article from Accounting Today explores several scenarios in which an auditor might withdraw from an audit and the implications of doing so. While the article focuses on audit engagements, the principles are similar for other types of engagement.  

READ ARTICLE HERE

Public Sector Accounting Standards Deferral (ASPE Standards, PSAS Standards)

Finally, you have a longer period of time get prepared on certain public sector accounting standards. The Public Sector Accounting Standards Board met late in June/early July to discuss several upcoming changes to accounting standards. Among other topics discussed, they decided to defer the effective date of all upcoming accounting standards by one year. These include:

  • PS 3280 Asset Retirement Obligations – previous implementation date changed from fiscal years beginning on or after April 1, 2021 to April 2022
  • PS 3450 Financial Instruments/ PS 3041 Portfolio Investments/PS 1201 Financial Statement Presentation/PS 2601 Foreign Currency Translation – previous implementation date changed from fiscal years beginning on or after April 1, 2021 to April 2022 however some public sector organizations may have already adopted these standards
  • PS 3400 Revenue – previous implementation date changed from fiscal years beginning on or after April 1, 2022 to April 2023

As a reminder, the May update highlighted the deferral of effective dates for ASPE standards including 3051 Investments, 3465 Income Taxes and 3856 Financial Instruments

READ FULL DECISION SUMMARY HERE

READ MAY UPDATE HERE


Enjoy your August. There a lot of things to look forward to in the upcoming month, the most exciting of which is the 2020 release of the PEG checklists.  Along with the typical revisions and updates, the important documents will be the new checklists related to CSRS 4200 Compilation Engagements and CAS 540 Accounting Estimates. I look forward to reviewing all of the updates in detail and providing my views to you to help you make the business decision on implementation. In the meantime, feel free to reach out any time with any questions. I am here to help save you time and provide peace of mind. Have a great long weekend. I look forward to enjoying the sunny warm days, watering my flowers and golfing, a lot. 

Best Regards,
Kirsten S. Albo, FCPA, FCA
President