Financial Reporting

Updated: December 11, 2024

Accounting Standards for Private Enterprises (ASPE)

Chapter 45: Financial instruments, retained from the Guide to Accounting Standards for Private Enterprises (GASPE), provides detailed guidance on the application of Section 3856, Financial Instruments from Part II of the CPA Canada Handbook – Accounting (Handbook).

What’s the issue?Climate is a topic that interested and affected parties are increasingly challenged with due to its potential effect on an entity’s business model, operations, and related financial information. For example, extreme weather events can disrupt operations and supply chain, damage infrastructure, and increase operational costs.

I have written about the importance of outreach activities and how the input we receive enhances the quality of the standards we issue in several of my previous posts. I highlighted the amount of outreach we undertook this past year in my Accounting Standards Board (AcSB)'s 2023-24 Annual Report Chair message.

AcSB Exposure Draft – Financial Instruments

The Accounting Standards Board (AcSB) proposes, subject to comments received following exposure, to amend FINANCIAL INSTRUMENTS, Section 3856 in Part II of the CPA Canada Handbook – Accounting.

What’s the issue?
Climate is a topic that interested and affected parties are increasingly challenged with due to its potential effect on an entity’s business model, operations, and related financial information. For example, extreme weather events can disrupt operations and supply chain, damage infrastructure, and increase operational costs.

Section 3041, Agriculture – How to apply the disclosure requirements for the net realizable value model.
In November 2019, the Accounting Standards Board (AcSB) issued Section 3041, Agriculture in Part II of the CPA Canada Handbook – Accounting. Section 3041 is a new standard for agricultural producers in accounting for agricultural inventories and productive biological assets. This standard is effective for fiscal years beginning on or after January 1, 2022.

Learn about the November 2022 amendment to Section 3400, Revenue, under accounting standards for private enterprises (ASPE) in Part II of the CPA Canada Handbook – Accounting.
On November 15, 2022, the Accounting Standards Board (AcSB) issued an amendment to Section 3400, Revenue in Part II of the CPA Canada Handbook – Accounting. This amendment defers the effective date for the application guidance of upfront non-refundable fees or payments from fiscal years beginning on or after January 1, 2022, to fiscal years beginning on or after January 1, 2025.

This CPA Canada Financial Reporting Alert highlights the amendments to Section 3400 and related implications.

Accounting standards for private enterprises (ASPE): Summary resource guide

We are committed to supporting Canadian practitioners, members in industry and members in education with guidance and resources on ASPE.

ASPE briefing: Section 3400, Revenue

In December 2019, the Accounting Standards Board (AcSB) issued amendments to Section 3400, Revenue in Part II of the CPA Canada Handbook – Accounting. Learn more about the amendments in our briefing.

ASPE briefing: Accounting for investments

Accounting for investments under Accounting Standards for Private Enterprises (ASPE) can be complex. Different types of investments exist and several accounting policy choices are available. Our updated briefing helps simplify the accounting for investments.

FRC highlights top areas for improving corporate reporting

This article highlights the ten areas in company reports identified by the FRC as needing improvement.

ASPE Briefing - Section 3462: Defined benefit plans

Learn how to correctly apply ASPE Section 3462 for defined benefit plans. SPE Briefing - Section 3462, Employee Future Benefits: A focus on defined benefit plans will assist you in the application of Section 3462, Employee Future Benefits, for private Canadian companies applying accounting standards for private enterprises (ASPE).


International Financial Reporting Standards (IFRS)

This reference material comprises of a table of concordance and a table providing a mark-up of the requirements that the IASB has brought forward from IAS 18 Presentation of Financial Statements to IFRS 18 Presentation and
Disclosure in Financial Statements with only limited changes to the wording.

IFRS 18 Presentation and Disclosure in Financial Statements.

IFRS 18 aims to improve financial reporting by:

• Requiring additional defined subtotals in the statement of profit or loss;
• Requiring disclosures about management-defined performance measures; and
• Adding new principles for grouping (aggregation and disaggregation) of information

Understand the new requirements and how they will affect your reporting, systems, processes and internal controls.

Canadian public company financial reporting update: Q2 2021

Need help understanding recent changes to Canadian financial reporting requirements? Our webinar for Q2 2021 will help you stay current on today's financial reporting hot topics.

The International Accounting Standards Board (IASB) today published a consultation document, proposing eight examples to illustrate how companies apply IFRS Accounting Standards when reporting the effects of climate-related and other uncertainties in their financial statements.

IFRS S1 and S2—first two sustainability standards released

On June 26, the International Sustainability Standards Board (ISSB) released “IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information” which sets out the overall requirements for an entity to disclose sustainability-related financial information, including information about its governance, strategy, and risk management, and related metrics and targets.

IFRS S1 is effective for periods beginning on or after January 1, 2024.

IFRS S1 requires an entity to disclose material information about all significant sustainability-related risks and opportunities to which it is exposed.It includes requirements and guidance supporting the
disclosure of material information about significant sustainability-related risks and opportunities not specifically addressed by an IFRS Sustainability Disclosure Standard. To identify sustainability-related risks and opportunities and to disclose information about them, entities are directed to consider sources, including:

  • the disclosure topics in the industry-based Sustainability Accounting Standards Board (SASB) standards;
  • the ISSB’s non-mandatory guidance (e.g., the Climate Disclosure Standards Board’s framework application guidance for water- and biodiversity-related disclosures);
  • the most recent pronouncements of other standard setting bodies whose requirements meet the needs of users of general-purpose financial reporting; and
  • the sustainability-related risks and opportunities identified by entities operating in the same industries or geographies.

Coincident to S1, on June 26 the ISSB released “IFRS S2 Climate-related Disclosures” which incorporated the recommendations of the Task Force on Climate-Related Financial Disclosures and industry-based disclosure requirements derived from SASB standards.

IFRS S2 sets out requirements to identify, measure, and disclose climate-related risks and opportunities. This information, and the information from an entity's general-purpose financial reporting, will support the assessment of future cash flows, including their amounts, timing, and certainty over the short, medium, and long terms. This assessment will, in turn, inform the analysis of an entity’s enterprise value. IFRS S2 requires an entity to provide information that enables users of general-purpose financial reporting to understand the following:

  • Governance: The governance processes, controls, and procedures an entity uses to monitor and manage climate-related risks and opportunities.
  • Strategy: The climate-related risks and opportunities that could enhance, threaten, or change an entity’s business model and strategy over the short, medium, and long terms.
  • Risk management: How an entity identifies, assesses, manages, and mitigates climate-related risks and opportunities.
  • Metrics and targets: The metrics and targets used to manage and monitor an entity’s performance in relation to climate-related risks and opportunities.

Such information would be presented in a way that helps users of general-purpose financial reporting understand the interrelationships between the disclosures.

Fireside chat with FASB chair Rich Jones and IASB chair Andreas Barckow.

IFRIC Update is a summary of the decisions reached by the IFRS Interpretations Committee (Committee) in its public meetings. Past Updates can be found in the IFRIC Update archive.

AGENDA ITEM:
Dynamic Risk Management
Financial Instruments with Characteristics of Equity
Rate-regulated Activities
Maintenance and consistent application
Business Combinations—Disclosures, Goodwill, and Impairment
Post-implementation review of IFRS 9—Impairment

The International Accounting Standards Board (IASB) has today proposed amendments to IAS 12 Income Taxes. The proposed amendments aim to provide temporary relief from accounting for deferred taxes arising from the imminent implementation of the Pillar Two model rules published by the Organization for Economic Co-operation and Development (OECD).

Exposure Draft Third Edition of the IFRS for SMEs Accounting Standard.

The International Accounting Standards Board (IASB) has today issued amendments to IFRS 16 Leases, which adds to requirements explaining how a company accounts for a sale and leaseback after the date of the transaction.

The IFRS for SMEs Accounting Standard Update is a staff summary of news, events and other information about the IFRS for SMEs® Accounting Standard and related SME activities. The staff summary has not been reviewed by the International Accounting Standards Board (IASB).

This edition of the IFRS for SMEs Accounting Standard Update includes:

20220916 - Third Edition of the IFRS for SMEs Accounting Standard

IFRIC Update February 2022

IFRIC Update is a summary of the decisions reached by the IFRS Interpretations Committee (Committee) in its public meetings. Past Updates can be found in the IFRIC Update archive.

Webcasts explaining the IASB’s Exposure Draft Supplier Finance Arrangements

International Accounting Standards Board (IASB) Member Zach Gast introduces the Exposure Draft Supplier Finance Arrangements in two short webcasts. In part 1, he provides the background to reverse factoring and other supplier finance arrangements. In part 2, he illustrates how the IASB’s proposals aim to enhance the transparency of supplier finance arrangements and sets out why it is important for stakeholders to respond to these proposals.

The Exposure Draft is open for comment until March 28, 2022.

Extractive Activities—Project update

In its September 2021 meeting, the International Accounting Standards Board (IASB) made tentative decisions about the scope and objectives of its Extractive Activities project.

IASB issues IFRS Accounting Taxonomy Update for Disclosure of Accounting Policies and Definition of Accounting Estimates

The International Accounting Standards Board (IASB) has today issued an update to the IFRS Accounting Taxonomy 2021 to reflect the amendments:

Disclosure of Accounting Policies, issued in February 2021, which amended IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements; and
Definition of Accounting Estimates, issued in February 2021, which amended IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.

IFRS Foundation webinars on Trustees' sustainability-related work-recordings now available

Recordings are now available of the live 7 July 2021 webinars discussing the IFRS Foundation Trustees’ work on creating a proposed new standard-setting board-International Sustainability Standards Board-that would develop sustainability-related disclosure requirements to meet investors' needs.

Investor Perspectives: Disclosures in financial statements to better reflect investor needs

Investors have been calling for better disclosures in financial statements, but delivering more useful disclosures to them proves to be a consistent challenge for companies.

Financial Reporting Webinar Explores Key Topics in Q1 2021

This webinar provides updates on matters of interest to Canadian public companies, including changes to IFRS Standards and Canadian securities legislation, key accounting issues in preparing financial statements, as well as recent and proposed regulatory initiatives. The webinar is part of CPA Canada's quarterly reporting webinar series and is jointly presented by BDO.

IFRS - IFRS Standards Navigator

The IFRS Foundation provides free access (through Basic registration) to the PDF files of the current year's consolidated IFRS® Standards and IFRIC® Interpretations (Part A of the Issued Standards—the Red Book), the Conceptual Framework for Financial Reporting and IFRS Practice Statements, as well as available translations of Standards.

Reporting on risks, uncertainties, opportunities and scenarios: Closing the gap (Financial Reporting Council)

Our report highlights examples of current practice that were identified by the Financial Reporting Lab (Lab) team and investors.

Subsidiaries without Public Accountability: Disclosures

Exposure Draft ED/2021/7 Subsidiaries without Public Accountability: Disclosures is published by the International Accounting Standards Board (Board) for comment only.


Not-For-Profit Organizations (ASNPO)

The Accounting Standards Board (AcSB) invites input from the not-for-profit sector to help develop a new exposure draft on accounting for restricted contribution revenue and related matters.
Choose a short survey from our three separate surveys, tailored to align with your experience as a preparer, practitioner, or user:

ASNPO Briefing: Section 4449, Combinations by Not-for-Profit Organizations

In March 2021, the Accounting Standards Board (AcSB) issued Section 4449, Combinations by Not-for-Profit Organizations in Part III of the CPA Canada Handbook – Accounting. Learn more about this new section in our briefing.

What not-for-profit organizations need to know about annual reporting

Learn how not-for-profit organizations (NFPOs) can prepare high-quality annual reports that enhance transparency and accountability to their stakeholders.


Pension Plans


Public Sector Accounting Board (PSAB)

Evaluating the Financial Self-sufficiency of Government Business Enterprises

How to Evaluate the Financial Self-sufficiency of a Government Business Enterprise explains how financial self-sufficiency is a key factor in determining whether a government organization is a government business enterprise (GBE) and should therefore be included in the financial statements of a controlling government. This guidance sets out factors, changes in factors and questions to consider in evaluating a GBE’s financial self-sufficiency.

An Overview
This introductory workshop provides an overview of the International Public Sector Accounting Standards Board (IPSASB) and its International Public Sector Accounting Standards (IPSAS) related to various routine transactions. The Introduction to IPSAS Workshop includes five sessions – each consisting of a video accompanied with a transcript and slides.

Watch on Demand:
Watch the recorded English or French webinar to learn about PSAB’s Government Not-for-Profit (GNFP) Strategy Decision and Implementation Plan.

Conceptual Framework and Basis for Conclusions Released

The new Conceptual Framework was issued in the CPA Canada Public Sector Accounting Handbook (PSA Handbook) on December 1, 2022.

Also available is the accompanying Basis for Conclusions to explain the rationale for PSAB’s decisions while developing each chapter of the Framework. It provides clarity on how the Conceptual Framework affects PSAB’s International Strategy and impacts future standard setting.

The Public Sector Accounting Board (PSAB) proposes, subject to comments received following exposure, to amend the CPA Canada Public Sector Accounting (PSA) Handbook as set out in this Exposure Draft. The 2022-2023 Annual Improvements reflect proposed amendments to:

The Accounting Standards Board (AcSB) proposes, subject to comments received following exposure, to amend PENSION PLANS, Section 4600 in Part IV of the CPA Canada Handbook – Accounting. The amendments would affect pension plans applying the standards in Part IV of the Handbook, as relevant.
The proposals in this Exposure Draft would:

Accrual reporting—recording the economic substance of transactions when they occur rather than when cash settlement happens—is fundamental to good decision making, transparency and accountability.

IFAC and CIPFA’s International Public Sector Financial Accountability Index collects, verifies, and analyzes current financial reporting bases and frameworks used by federal and central governments around the world. It also provides an overview of public sector reporting trends.

IPSASB issues Exposure Draft (ED) 80, Improvements to IPSAS, 2021

The IPSASB has issued Exposure Draft (ED) 80, Improvements to IPSAS, 2021 for public comment.

Webinar – PSAB’s Exposure Draft “Employee Benefits, Proposed Section PS 3251”

Watch our recorded webinar to learn about the key proposals in PSAB’s Exposure Draft “Employee Benefits, Proposed Section PS 3251."

Webinar – PSAB’s International Strategy Update

Hear from our experts on the International Strategy Decision. Get an update on what we’ve done to implement our new International Strategy. We will discuss GAAP hierarchy, our responses to IPSASB documents, and other international influence activities.

What are accounting standards for the Public Sector?

Accounting standards are authoritative standards for financial accounting and reporting developed through an organized standard-setting process and issued by a recognized standard-setting body. Accounting standards specify how transactions and other events are to be recognized, measured, presented and disclosed in a public sector entity’s financial statements. The objective of such standards is to meet the needs of users of financial statements by providing the information needed for accountability and decision making.

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