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Accounting Standards for Private Enterprises

AcSB Exposure Draft – Revenue – Upfront Non-refundable Fees or Payments


The Accounting Standards Board (AcSB) proposes, subject to comments received following exposure, to amend, Section 3400, Revenue, in Part II of the CPA Canada Handbook – Accounting (the Handbook). The new guideline would also apply to not-for-profit organizations (NFPOs) using Part III of the Handbook, as relevant.

Staff Contact(s)

Katharine Christopoulos, CPA, CA Director, Accounting Standards Board

Thank you for your interest in the AcSB Exposure Draft – Revenue – Upfront Non-refundable Fees or Payments

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In December 2019, the AcSB issued amendments to Section 3400. The amendments provided additional application guidance on the requirements in the standard related to various complex revenue topics, including determining when to recognize revenue from upfront non-refundable fees or payments. The effective date for the amendments was set for fiscal years beginning on or after January 1, 2022. The effective date of Revenue paragraphs 3400.A45-.A48 was subsequently deferred to January 1, 2025, after the Board heard of application challenges from those applying the amendments. In particular, the Board heard that some member-benefit organizations were concerned about the decision usefulness of deferring upfront non-refundable fees over long member durations. They also expressed concerns about the associated cost of applying the amendments. Therefore, the Board decided that more time was needed to research the concerns raised.