August 2020 – Special Update

August 7, 2020 / Special Update

Greetings,

The CPA Canada Standards and Guidance Collection (the “Handbook”) was updated this month. Unlike many previous releases which did not include noteworthy changes,  this time there were many significant amendments and revisions.

CPA Canada Handbook – Accounting

Part I – IFRS

Part II – ASPE

  • Amendments to:
    • Subsidiaries, Section 1591
    • Agriculture, Section 3041
    • Investment, Section 3051
    • Equity, Section 3251
    • Income Taxes, Section 3465
    • Financial Instruments, Section 3856
  • The amendments related to the deferral of effective dates, discussed in my May 2020 Update. Ensure you stay up top of when the new standards are effective as certain revisions have significant impact, the most being Financial Instruments and the classification of Redeemable Shares. This could have a substantial impact on your client’s financial statements. It is a good thing this has been deferred a year as gives more time to consider the impact and discuss such with your clients and their bankers. 
  • For further details, refer to Highlight Summary No. II. 24.

Part III – ASNPO

  • Amendments to: 
    • First-time Adoption by NPOs, Section 1501
    • Inventories Held by NPOs, Section 3032
    • Tangible Capital Assets Held by NPOs, Section 4433
    • Disclosure of Related Party Transactions by NPOs, Section 4460 
  • For further details, refer to Highlight Summary No. III. 13.

CPA Canada Handbook – Assurance

  • Conforming changes to Canadian standards (CAS 220, CSAE 3000, CSRE 2400) as a result of the Revised International Ethics Code. These were not significant changes. 
  • New standard for CSRS 4400, Agreed Upon Procedures and a new Guideline, AuG 50, Conducting a Performance Audit in the Public Sector in Accordance with CSAE 3001.
  • Amendments to CSRS 4460 Reports on Supplementary Matters Arising from an Audit or a Review Engagement. 
  • A number of other standards were withdrawn.
  • For further details, refer to Highlight Summary No. 31.

Lots of changes taking place. To access each of the links above, you will need to log onto Knotia. The details are worth reading. The other release that will be occurring is the 2020 PEG updates. This will also be an important release as the updates will checklists for the new compilation standard 7CSRS 4200 and CAS 540 Accounting Estimates among other editorial updates.  Once the new checklists are released, I will be reviewing them in detail and sending out another special update on critical changes I think you should be aware of. Call me with any questions you may have. This definitely is a busy summer but I am here to help you save time and achieve peace of mind.

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