In September 2023, the Accounting Standards Board (AcSB) issued amendments to Section 3840, Related Party Transactions, in Part II of the CPA Canada Handbook – Accounting Standards for Private Enterprises. The amendments allowed an option in paragraph 3840.44(b) to either retrospectively restate prior periods when carrying amounts are used to account for a combination under common control, or to prospectively account for these transactions from the date the transfer occurred.
Since issuing the amendments, the AcSB received an application question regarding the comparative figures to be presented, if any, when a transaction is accounted for prospectively from the date the transfer occurred in accordance with paragraph 3840.44(b)(i).
The AcSB discussed the application question with its Private Enterprise Advisory Committee and is aware of differing views emerging in practice.
The AcSB considered the Committee’s feedback and decided to develop an exposure draft for a narrow-scope amendment to Section 3840.