Accounting Standards for Private Enterprises

AcSB Exposure Draft – Revenue


The Accounting Standards Board (AcSB) proposes, subject to comments received following exposure, amendments to Section 3400, Revenue, in Part II of the CPA Canada Handbook – Accounting. The amendments will provide additional guidance on how to apply certain requirements in Section 3400. These amendments would also apply to not-for-profit organizations (NFPOs) using the standards in Part III of the Handbook, as relevant.

Staff Contact(s)

Kelly Khalilieh, CPA, CA

Director, Accounting Standards Board


The Accounting Standards Board (AcSB) consulted with stakeholders about its relative priorities for Part II as per its 2017-2018 Annual Plan. As part of this consultation, the AcSB conducted a survey for stakeholders who account for revenue using Part II or Part III of the Handbook.

The results of this survey identified Section 3400, Revenue, in Part II as an area of concern, with guidance pertaining to the following topics noted as being insufficient and leading to diversity in practice:

  • bill-and-hold arrangements;
  • multiple-element arrangements;
  • percentage of completion method;
  • reporting revenue gross or net; and
  • upfront non-refundable fees/payments.

The amendments will provide additional guidance on how to apply the requirements in Section 3400 related to these topics.