FYI Article – Financial Instruments: Reviewing the Standard

November 2014

The AcSB has issued a Request for Information as part of its post-implementation review of Section 3856, Financial Instruments in Part II of the CPA Canada Handbook – Accounting.

Your input is due by February 9, 2015.

Who Should Be Interested in this Post-Implementation Review?

Most private enterprises and not-for- profit organizations apply Section 3856.

What is a Post-Implementation Review?

A post-implementation review looks at the experience of applying a new standard; for instance:

  • Do financial statement users find the information provided useful?  Could the standard provide more useful information?
  • Are there significant challenges in applying the standard that were not anticipated and/or costs that could be reduced?
  • Are there aspects of the standard where clarification or additional guidance would be useful?  

A post-implementation review generally occurs two or three years after a new standard is first applied, so there is sufficient experience to address the above questions. Post-implementation reviews are part of the AcSB’s due process.

Why Is This Important?

This is your opportunity to identify to the AcSB any difficulties or concerns you have with Section 3856 and any suggestions for improvement.  Your input, based on your experience with Section 3856, will help the AcSB decide whether and how to improve the financial instruments standard, taking into account cost/benefit considerations.

Questions Asked in the Post-Implementation Review

Accounting for financial instruments was significantly revised as part of the changeover to accounting standards for private enterprises set out in Part II of the CPA Canada Handbook – Accounting. The Section 3856 Post-Implementation Review covers all aspects of the standard, including:

  • initial measurement;
  • subsequent measurement;
  • related party transactions;
  • impairment;
  • presentation of liabilities and equity;
  • derecognition;
  • hedge accounting; and
  • disclosures.

What Happens After the Post-Implementation Review?

Once the Post-Implementation Review is completed, the AcSB will seek recommendations from its Private Enterprise Advisory Committee on whether any changes should be made to Section 3856. In making any changes to the standard, the AcSB will follow its normal due process, including issuing an exposure draft of the proposed changes for comment by stakeholders. The AcSB will also present the findings of the Post-Implementation Review in a public report.

Request for Information

Input can be provided through written responses to the questions in the Request for Information, by using this Response Questionnaire or through attending one of the roundtable meetings that are being arranged.

Further information about this Post-Implementation Review, including details of the roundtables, can be found on the project page.


Rebecca Villmann, CPA, CA, 
CPA (Illinois)
Director, Accounting Standards Board
Phone: +1 (416) 204-3464