This summary of decisions of the Auditing and Assurance Standards Board (AASB) has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on projects and other matters, which might change after further deliberations by the AASB. Decisions to publish exposure draft and Handbook material are final only after a formal voting process.
Other Canadian Standards
Compilations of Future-Oriented Financial Information
The AASB discussed issues related to the project to develop a Canadian Standard on Related Services (CSRS) on compilations of future-oriented financial information that will replace AuG-16, Compilation of a Financial Forecast or Projection. Key issues discussed included:
- the definitions of “best estimate,” “best estimate assumptions,” “hypothetical assumptions,” “forecast,” and “projection”;
- the practitioner’s responsibility when actual financial results of an expired period are incorporated into the compiled future-oriented financial information;
- the relationship between three key dates:
- the effective date of the underlying assumptions;
- the date management assumes responsibility for the compiled future-oriented financial information;
- the date of the compilation engagement report;
- the practitioner’s work effort when assisting management to compile future-oriented financial information, including the underlying assumptions; and
- the project’s timeline, including the planned issuance of the exposure draft in September 2024.
Sustainability Assurance
The AASB held an education session on Sustainability Assurance and received two presentations from external presenters:
- “Sustainability Assurance Challenges”, by Edward Olson, ESG Leader, MNP.
- “Sustainability Reporting Landscape and Readiness for Assurance”, by Naomi Thomas, ESG Senior Manager, PWC.
The AASB also reviewed and discussed example sustainability reports and assurance reports. The discussion provided background knowledge to support the development of its proposed sustainability assurance standard which the AASB is planning to approve for exposure in August 2023 and issue shortly thereafter.