Accounting Standards for Private Enterprises

Exposure Draft, Investments


The Accounting Standards Board (AcSB) proposes, subject to comments received following exposure, to amend INVESTMENTS, Section 3051 in Part II of the CPA Canada Handbook – Accounting. This amendment will clarify that the guidance relating to the cost method in Section 3051 also applies to interests in jointly controlled enterprises accounted for using the cost method. This amendment would also apply to not-for-profit organizations using the standards in Part III of the Handbook, as relevant.

Staff Contact(s)

Lester Cheng, CPA, CA

Director, Accounting Standards Board

How to reply

Respond with your comment letter (in a Word file) to by December 5, 2018.

Support Materials


In December 2016, INVESTMENTS, paragraph 3051.07A, was added to Part II of the CPA Canada Handbook – Accounting on how to apply the cost method to an investment subject to significant influence. INTERESTS IN JOINT ARRANGEMENTS, Section 3056, permits an investor with an interest in a jointly controlled enterprise to account for its interest using either the equity method or cost method as defined in Section 3051. Questions have arisen as to whether paragraph 3051.07A also applies to interests in jointly controlled enterprises, since they are also permitted to apply the cost method.