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.
Interest Rate Benchmark (IBOR) Reform
The Private Enterprise Advisory Committee discussed proposals to amend Section 3856, Financial Instruments, addressing issues related to debt modification and hedge accounting resulting from IBOR reform. The Committee advised the AcSB on which industries in the private sector are most likely to be affected by the proposals. The Committee also advised on improving the drafting of the proposals.
The AcSB will discuss the Committee’s comments, and those received from its Not-for-Profit Advisory Committee, at the Board meeting on July 21-22, 2021.
Implementation of Accounting Standards for Private Enterprises during the COVID-19 Pandemic
The Committee discussed financial reporting issues arising from the COVID-19 pandemic. The Committee provided input on:
- extending the relief for both lessees and lessors on accounting for COVID-19-related rent concessions;
- whether additional guidance or educational materials were needed on going concern; and
- the accounting for the COVID-19-related government assistance programs.
The Committee recommended the AcSB extend the relief on accounting for rent concessions by at least six months. The Committee did not recommend any additional standard setting on the other topics discussed.
The Committee also discussed the results of its member-feedback survey for the 2020-2021 fiscal year to assess the volunteers’ level of satisfaction. Committee members raised no further comments.