The Private Enterprise Advisory Committee assists the Accounting Standards Board (AcSB) with maintaining and improving accounting standards for private enterprises (ASPE) in Part II of the CPA Canada Handbook – Accounting and with identifying the need for non-authoritative guidance about the standards. The Committee makes recommendations to the AcSB but is not authorized to interpret or provide authoritative guidance on ASPE.
The AcSB staff has prepared this document based on discussions held during the Committee’s meeting. The meeting notes do not necessarily represent the AcSB’s views and nothing in them constitutes authoritative guidance on acceptable or unacceptable application of ASPE. Only the AcSB can make such a determination.
Revenue
The Committee provided feedback to staff on the draft Exposure Draft. In addition, the Committee advised that:
- the AcSB consider providing transitional relief for the proposed guidance relating to multiple element arrangements; and
- the proposed effective date should be January 1, 2021.
The Board will consider this input at its March 2019 meeting.
Consultation on Priorities for Part II
Related Party Transactions
The Committee discussed an approach proposed by staff on researching related party combinations. It also discussed various related party combination structures. These included:
- common control combinations that constitute a business;
- combinations involving related parties other than entities under common control that constitute a business; and
- combinations involving related parties that do not constitute a business.
Committee members provided feedback on the reasons for these transactions, how the transactions are structured, nature of consideration involved, and the challenges observed in practice.
The Board will consider this input as it deliberates a project proposal to research related party combinations at its March 2019 meeting.
Narrow-scope Amendments
Income Taxes
The Committee received an update of the feedback from stakeholders on the AcSB’s Exposure Draft, “Income Taxes,” and provided advice on the staff’s recommendations on this feedback. The Board will consider the feedback and the advice at its February 2019 meeting.
Investments
The Committee received an update of the feedback from stakeholders on the AcSB’s Exposure Draft, “Investments,” and provided advice on the staff’s recommendations on this feedback. The Board will consider the feedback and the advice at its February 2019 meeting.
Relevance of Financial Statements
The Committee discussed the financial reporting practices of small and medium enterprises that transition to a GAAP framework. It also discussed the reasons for departures from GAAP for enterprises that currently apply accounting standards for private enterprises.
The Board will consider the Committee’s feedback and next steps at its May 2019 meeting.