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Accounting Standards for Private Sector Not-for-Profit Organizations

Financial Statement Concepts

Summary

The Accounting Standards Board (AcSB) is exploring ways to improve Section 1000, Financial Statement Concepts, and Section 1001, Financial Statement Concepts for Not-for-Profit Organizations, in Parts II and III of the CPA Canada Handbook – Accounting, respectively.

The AcSB is considering feedback from its Private Enterprise Advisory Committee and Not-for-Profit Advisory Committee on how financial statement concepts are currently used, and the challenges with applying them. As part of its research, the Board will review financial statement concepts to ensure that they continue to be fit for purpose for Canadian entities.

Staff Contact(s)

Mark Squire, CPA, CA Principal, Accounting Standards Board

Phone number  +1 647 264 3810
Email address  [email protected]
Eric English, CPA, CA Principal, Accounting Standards

Phone number  +1 647 264 8277
Email address  [email protected]

Project Status

  • Information gathering

    The AcSB is researching issues with Section 1000, Financial Statement Concepts, and Section 1001, Financial Statement Concepts for Not-for-Profit Organizations in Parts II and III of the CPA Canada Handbook – Accounting, respectively, to identify potential areas for improvement

  • Approving project
  • Engaging Communities
  • Deliberating feedback
  • Final pronouncement

What You Need to Know about Financial Statement Concepts

The AcSB is undertaking a project to improve Financial Statement Concepts in Parts II and III of the CPA Canada Handbook – Accounting. Learn how this initiative can benefit both preparers and practitioners in practice, as well as the Board in standard-setting.

Learn more

On-demand Webinar – Domestic Accounting Standards Update (Fall 2024)

Watch our recorded webinar to learn about current projects and recent amendments in Parts II, III, and IV of the CPA Canada Handbook – Accounting.

This webinar aired live in November 2024 and is now available on-demand.

Watch now

News

September 4, 2024

Resource

What You Need to Know about Financial Statement Concepts

The AcSB is undertaking a project to improve Financial Statement Concepts in Parts II and III of the CPA Canada Handbook – Accounting. Learn how this initiative can benefit both preparers and practitioners in practice, as well as the Board in standard-setting.  

Meeting & event summaries

October 21, 2024

Not-for-Profit Advisory Committee Meeting Notes – October 21-22, 2024

The Not-for-Profit Advisory Committee continued discussions related to the AcSB’s project to improve Section 1001, Financial Statement Concepts for NFPOs, in Part III of the Handbook. The Committee provided feedback on whether each of the following topics from the International Accounting Standards Board’s (IASB) Conceptual Framework would be fit for purpose for Canadian NFPOs:

  • the objectives of general purpose financial reporting;
  • qualitative characteristics of useful financial information; and
  • financial statements and the entity.

The Committee noted that the updated terminology and provisions in the IASB’s Conceptual Framework could enhance preparers’ and practitioners’ understanding of financial statement concepts. These improvements may lead to greater consistency in applying the standards outlined in Part III of the Handbook and aid the AcSB in the standard-setting process. The Committee also provided feedback on potential modifications and revisions to ensure these topics are suitable for Canadian NFPOs. The Committee identified differences between users of NFPO financial statements and users of for-profit financial statements prepared under Part II of the Handbook, which will need to be considered when developing the updated concepts.

The AcSB will discuss the Committee’s feedback at its meeting in November 2024.

For more information on the background and benefits of the Financial Statement Concepts project, please visit the following webpage: “What You Need to Know about Financial Statement Concepts.”

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal voting process.