January 2026
Greetings,
Happy new year!! I know it is the end of January but I can still say that. My personal rule is that I can wish people happy new year until January 31, so I am good. As you kick off the new year, this month’s update has a few ideas to set the year on the right path. Being aware of what changes are coming is a good place to start. Read on…
Practice Inspection Report Summary Findings
It is that time of year when provinces release their annual Practice Inspection Results. It is always helpful to understand findings from other firms so you can proactively address them in your own firm. I have linked the Manitoba report, but from reading other provinces’ reports, I know findings are identical to those in other provinces. So… find your province’s report, but read this one in the meantime.
Findings are categorized under financial reporting, audits, reviews, compilations, and quality management and include key observations. Definitely worth the read.
READ CPA MB FOCUS ON PRACTICE INSPECTION REPORT HERE
And, for those firms that are CPAB registrants, you most likely want to check out CPAB’s Year in Review Report. READ CPAB REPORT HERE
ASPE 3041 Agricultural Inventory: Narrow Scope Amendments
The HB section on Agricultural Inventory has recently been updated. The narrow-scope amendments remove certain disclosure requirements for agricultural inventories and clarify the amortization requirement for productive biological assets managed on a collective basis.
Specifically, the changes were to address the concerns raised by removing the disclosure requirements in paras 3041.88(c)&(d) of the net realizable value model and in para 3041.86(d) of the cost model. The application of para 3041.66 relating to productive biological assets managed on a collective basis was also clarified, as well as guidance on accounting for when there is a change in useful life of productive biological assets was provided.
The revisions are effective for years beginning on or after January 1, 2027; however, earlier adoption is permitted. The updates are in the Handbook so if you have clients with agricultural assets you may want to understand the changes and early adopt. Things are simpler.
READ 3041 PROJECT STATUS AND DETAILS HERE
Project Updates
It is always worthwhile keeping up to date on ongoing projects by the AASB and AcSB. There are a few imminent changes that I have reported on before… ASPE 3041 above, Revised CAS 240 Responsibilities Related to Fraud, Revised CAS 570 Going Concern. However, there are a few other ongoing projects that it is helpful to be aware of. Nothing “major” but even those little changes can impact an engagement more than you think. In the next newsletter, I will provide the details but in the meantime, if you want to check them out for yourself, here are the links to the various project pages for you…
CLICK HERE FOR OTHER STANDARDS PROJECTS
CPAs and AI: Empowering the profession’s future
This compelling three-part series from CPA Canada (in collaboration with AICPA) reveals how AI and automation are already reshaping the CPA profession by streamlining routine tasks, driving real-time audit transformations, and enabling deeper strategic analysis. It provides trusted, ethically grounded guidance on governance, transparency, and assurance in AI-powered environments.
Avoid BYOAI: The importance of AI training in the workplace
An CPA Australia article makes a powerful case for why AI training is no longer optional… it’s essential. As AI reshapes how work gets done, finance and business professionals who receive practical, role-specific upskilling are far better equipped to boost productivity, reduce risks, and foster trust in automation. It emphasizes the leadership’s responsibility to champion AI fluency across teams and embed ethical governance into training strategies.
CPD Reporting
Now that 2025 has ended, you will have to turn your mind to CPD reporting. Most likely, you have received an email from your provincial body reminding you that it is now time to make your 2025 Continuing Professional Development (CPD) Declaration.
The CPD requirements are the same from province to province and include the following guidelines:
- All members are required to make a CPD Declaration annually, regardless of any previously declared exemptions or change of employment status. If you are registered in more than one province, start with your main province… and then complete the declarations in the other provinces. You need to make a declaration for each province where you are a member.
- CPD reporting period is based on the calendar year (Jan 1 – Dec 31);
- A declaration must be made for both annual and three-year rolling requirements;
- Each member must complete a minimum of 20 hours of CPD annually of which 10 hours must be verifiable;
- Each member must complete 120 hours over a 3-year rolling cycle (current year and prior two years), of which 60 hours must be verifiable, and four of those verifiable hours must be in the area of ethics
- Reporting will consist of Comply, Non-comply or Exempt declaration; remember the CPD tracking is not your declaration. You still need to make the Declaration.
- Members are required to retain CPD records for a minimum of five years.
TIP: Just do it now to get it done so you are not fined for a late-filing penalty later.
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I am excited about what 2026 holds. There are many changes coming, but that is what makes life fun and interesting. I have many plans for the upcoming year that I look forward to implementing. Remember, I am always here to help you as needed to help you save time and achieve peace of mind.
Best regards,
Kirsten S. Albo, FCPA, FCA
President