Another busy month – where does the time go? As we head into the last part of the year, it is important to stay focused on what we need to get done to be prepared for the new year. One of the key action items is to remind yourself of what is upcoming. Therefore this month’s topics are limited to the near future. Reminders of revised and new standards and details of training courses to help you get ready. Read on…
Reminder, reminder, reminder… Revised CAS 540 Auditing Estimates is effective for upcoming December 2020 year ends. This standard will have an impact on all audit engagements, even those clients with less complex estimates. CPA Canada recently released a publication to help you with implementation. Their FAQ provides answers to common questions on the revised standard. A really good tool to help you understand implementation issues.
Practice inspections are a part of our profession. I have spent a lot of time over the past year either helping firms get ready for a practice inspection or responding to their practice inspection results. The Annual Focus on Practice Inspection summarizing all inspection findings was released this week. It is helpful to understand what deficiencies occurred so you can take action to help ensure the same findings don’t happen in your engagements. The Manitoba results are consistent with findings from other provinces as results are shared and compared across the country. Very worth your time to read.
The year end deadline is fast approaching! Often it can be a challenge to find good, practical and worthwhile PD courses. ASK KSA has several upcoming on-line workshops to help you meet those required verifiable PD hours. We can also deliver tailored in-house courses as needed. Reach out to me directly. Current live online workshop offerings are as follows:
Path to Implementation – CSRS 4200
(3 hours verifiable CPD)
January 6, 2021 @ 1:30 pm
January 21, 2021 @ 1:30 pm $600
What’s New? 2020 Assurance and Accounting Update
(3 hours verifiable CPD)
December 18 @ 1:30 pm $200
Many practitioners are reaching out to me these days for assistance on many topics. We are facing many challenges in our current environment. Results of practice inspections, financial statement disclosure matters, file efficiency reviews, monitoring, implementing the new compilation standard… the list goes on. Please feel free to call with whatever is on your mind. I am here to save you time and provide peace of mind.
Kirsten S. Albo, FCPA, FCA
In this Update: Retractable or Mandatorily Redeemable Shares; ASPE Resources; Practice Inspection Report; Pricing Client Engagements
We are headed into the last month of the year and there are a number of things to think about to get ready for the new year. The more prepared we are, the smoother the work flow which allows us to concentrate on our clients which is always the priority. New accounting standards, upcoming changes in assurance standards and general quality matters all make preparation even more important. The topics below will help you be prepared for the coming months. Read on…
Retractable or Mandatorily Redeemable Shares Issued in a Tax Planning Arrangement
These amendments have been around for awhile but are finally in effect for the upcoming year. Amendments to Section 3856 Financial Instruments provide new conditions in order for retractable or mandatorily redeemable shares issued in a tax planning arrangement to be classified as equity as well as some changes to measurement, presentation and disclosure requirements. The amendments are effective for fiscal years beginning on or after January 1, 2020, that is the upcoming year. Not only do you have to think about new shares issued, there are several transition issues that you will have to address in financial statements. Make sure you spend the time to understand the amendments. The resource tool on this topic from CPA Canada along with the handbook section itself, will help you do that.
ASPE Resource Summary
Speaking of resource tools, CPA Canada publishes many resources and tools on a variety of topics throughout the year, all with the objective to assist practitioners. A recent publication is a summary of all ASPE guidance issued over the past year. It is a great publication to have on hand when you are dealing with specific issues. Topics include financial reporting alerts and ASPE briefings that provide implementation guidance on new and/or amendments to ASPE standards. In the document, there are hot links to the relevant resource so very easy to access. It also includes links to free webinars and other ASPE resources. Keep this publication on hand and access when needed.
Focus on Practice Inspection Report
The provincial bodies are the governing bodies of our self-regulating profession; they promote the highest standards of integrity and expertise to their members. Practice Inspections are a key component of the overall regulatory process. CPA Manitoba’s annual report, Focus on Practice Inspections was released this past October and is very similar to the reports issued in other provinces. The report provides a summary of findings in each of the areas of financial statement presentation, audit engagements, review engagements, special reports and quality control. Detailed common deficiencies are included in Appendix 3. The report also includes other matters for consideration in Appendices 1 and 2. The report is worth the read as it highlights key things to think about in the upcoming year. You may even want share this report with staff so they understand common deficiencies and are then able to address these in your client files. If you need to get ready for an upcoming practice inspection or implement an action plan in response to one, reach out for assistance. I can help you through the process.
How to Price Client Engagements and Increase Firm Profits
With all the upcoming changes, it can be a challenge on how to price engagements. Fees are important and discussions on such are not always easy but we cannot lose sight of the fact that while assisting our clients is of upmost priority, we should be paid fairly for the work that we do. A fantastic article from IFAC covers approaches to fee increases and value pricing. Included in the article strategies for increasing fees and provides food for thought on value pricing.
As we move into the last month of the year, please feel to reach out at any time to help you be prepared for the upcoming year. As one other year-end reminder, check on your CPD hours as December 31, is coming quicker than we think. Reporting deadlines are January 31, 2020. I am delivering in-house PD courses to several firms over the next few weeks but have some availability left in my schedule before the end of the year if needed. Over the coming months I will continue to keep you updated on new standards, including the recently approved CSRS 4200, as more details become known. There are so much to think about but I am always here to help provide you peace of mind and save you time.
Kirsten S. Albo, FCPA,FCA