Detailed Review of Accounting Standards for Private Enterprises

The AcSB continued discussing feedback on its Consultation Paper, “Detailed Review of Accounting Standards for Private Enterprises (ASPE).” As part of this discussion, the Board deliberated feedback from its Private Enterprise Advisory Committee and Medium and Small Practitioners Advisory Committee on guidance to address challenges related to the impairment of long-lived assets. The Committees’ feedback highlighted the need for guidance to improve process clarity and support consistent application. Based on this feedback, the Board decided to develop a non-authoritative resource to clarify the sequential steps in the end-to-end impairment process. The Board expects to issue this resource in Q1 2027.

The AcSB will continue addressing additional topics covered in the Consultation Paper beyond the current fiscal year and expects to issue a project summary in Q1 2027.

The AcSB began discussing feedback on its “Consultation Paper – Detailed Review of Accounting Standards for Private Enterprises (ASPE),” which closed for comment on January 31, 2026. Through its discussions, the Board noted that respondents supported the project’s objective to simplify the application of ASPE while maintaining its usefulness for entities of all sizes and complexities.

The AcSB also discussed projects that respondents identified as higher priority and for which there was broad support for potential proposals discussed in the Consultation Paper. The Board used this feedback to determine which topics to address first as part of its 2026-2027 Annual Plan. In response to the feedback, the Board tentatively decided to:

• begin a research project on challenges interested and affected parties encounter with related party transactions; and
• begin a project to develop guidance that would address challenges related to impairment of long-lived assets.

Work on additional topics will continue beyond 2026-2027. The AcSB will continue discussing feedback on its Consultation Paper at its July 2026 meeting and plans to issue a Feedback Statement in the first half of 2027.

The AcSB discussed a final draft of its Consultation Paper, “Detailed Review of Accounting Standards for Private Enterprises.” Subject to minor amendments, the Board approved the Consultation Paper and plans to issue it in September 2025.

The AcSB also discussed and approved an outreach and communications plan for the Consultation Paper.

The AcSB reviewed a revised draft of its consultation paper for the Detailed Review of ASPE project. This version incorporated feedback from the March 2025 Board meeting and topics discussed with the Board and its Advisory Committees.

The remaining topics for inclusion in the consultation paper will be discussed at the May 2025 meetings of the Private Enterprise Advisory Committee and the Medium and Small Practitioners Advisory Committee. These topics will be incorporated into the draft that will be presented to the AcSB at its June meeting. At that time, the Board will review the near-final draft and the proposed outreach plan. The consultation paper is expected to be released in Q3 2025.

The AcSB continued its discussions on its detailed review of ASPE project. The Board discussed feedback received during the January 2025 meetings of the Private Enterprise Advisory Committee and Medium and Small Practitioners Advisory Committee, and the October 2024 meeting of the Not-for-Profit Advisory Committee. These discussions focused on key application issues related to Part II of the CPA Canada Handbook – ASPE, including revenue recognition, disposal of long-lived assets and discontinued operations, and related party transactions.

The AcSB also reviewed an initial draft of its consultation paper for the Detailed Review of Accounting Standards for Private Enterprises project, incorporating input from Board discussions and feedback from its Committees.

The remaining topics to be included in the consultation paper will be discussed at the Private Enterprise Advisory Committee and Medium and Small Practitioners Advisory Committee meetings in May 2025. The Board will review a revised draft of the consultation paper at its May 2025 meeting. The consultation paper is expected to be released in the second half of 2025.

The Medium and Small Practitioners Advisory Committee discussed application issues for the third batch of selected ASPE Standards that included the following: Section 3400, Revenue; Section 3475, Disposal of Long-lived Assets and Discontinued Operations; and Section 3840, Related Party Transactions. The AcSB will discuss this feedback at its March 2025 meeting and will seek feedback on additional application issues from its Private Enterprise Advisory Committee and Medium and Small Practitioners Advisory Committee at their meetings in Q2 2025.

The AcSB continued its discussions on its detailed review of Accounting Standards for Private Enterprises (ASPE). The discussion focused on feedback received at the October and November 2024 meetings of its Private Enterprise Advisory Committee, Not-for-Profit Advisory Committee, and Medium and Small Practitioners Advisory Committee on the identified issues for the Part II standards for the impairment of long-lived assets, leases, and financial instruments.

The AcSB also provided input on the information needed on a third batch of Part II standards, which includes the standards on revenue, employee future benefits, income taxes, disposal of long-lived assets and discontinued operations, related party transactions, and stock-based compensation. This third batch of standards will be discussed at future Private Enterprise Advisory Committee and Medium and Small Practitioners Advisory Committee meetings in the first half of 2025. The Board will consider this feedback at a future meeting as it develops a consultation paper for this project. The Board plans to issue its consultation paper in the second half of 2025.

Private Enterprise Advisory Committee Notes – November 13, 2024

The Private Enterprise Advisory Committee continued the discussion from its July 2024 meeting regarding application issues in Section 3856, Financial Instruments, that might be addressed through this project. The Committee also discussed application issues for the second batch of selected ASPE standards that included Section 3063, Impairment of Long-lived Assets, and Section 3065, Leases. The AcSB will discuss this feedback at its December 2024 meeting and will seek feedback on additional application issues from its Private Enterprise Advisory Committee and Medium and Small Practitioners Advisory Committee at the meetings in Q1 2025.

Not-for-Profit Advisory Committee Meeting Notes – October 21-22, 2024

The Not-for-Profit Advisory Committee discussed application issues for not-for-profit entities applying the requirements in Section 3063 Impairment of Long-lived Assets, Section 3065, Leases, Section 3400, Revenue, Section 3462, Employee Future Benefits, and Section 3840, Related Party Transactions, that might be addressed through the AcSB’s Detailed Review of ASPE project. The AcSB intends to use this feedback to help draft a consultation paper. The Board will discuss the Committee’s feedback at its December 2024 meeting.

The AcSB continued its discussions on its detailed review of Accounting Standards for Private Enterprises (ASPE). The discussion focused on feedback received at the July 2024 meetings of its Private Enterprise Advisory Committee, Not-for-Profit Advisory Committee, and Small Practitioners Working Group on the Board’s approach to scoping the issues to consider through this project, and the identified issues for the Part II of the CPA Canada Handbook ̶ ASPE standards for inventories, asset retirement obligations, and financial instruments. The feedback supported the scoping approach approved by the Board at its June 2024 meeting.

The AcSB also provided input on the information needed on the second batch of Part II standards, which includes the standards on impairment of long-lived assets, leases, and related party transactions. This second batch of standards will be discussed at the October and November 2024 meetings of the Private Enterprise Advisory Committee, the Not-for-Profit Advisory Committee, and the Small Practitioners Working Group. The Board will consider this feedback at a future meeting as it works to develop a consultation paper for this project.

Not-for-Profit Advisory Committee Notes – July 23, 2024

The Not-for-Profit Advisory Committee discussed the AcSB’s approach for determining which issues will be addressed through the Detailed Review of Accounting Standards for Private Enterprises (ASPE) project. Committee members generally agreed with the proposed approach for defining the project’s scope, noting it would ensure the project focuses on the most significant and pervasive challenges that can be addressed without negatively impacting the quality of information provided to users.

The Not-for-Profit Advisory Committee also discussed application issues for not-for-profit entities applying the requirements in Section 3031, Inventories, Section 3110, Asset Retirement Obligations, and Section 3856, Financial Instruments, in Part II of the CPA Canada Handbook – ASPE that might be addressed through this project. The AcSB intends to use this feedback to help draft a consultation paper. The Board will discuss this feedback at its September 2024 meeting and will continue discussions on additional topics with the Private Enterprise Advisory Committee, Not-for-Profit Advisory Committee, and Small Practitioners Working Group at the meetings in October and November 2024.

Private Enterprise Advisory Committee Notes – July 18, 2024

The Private Enterprise Advisory Committee discussed the AcSB’s approach for determining which issues will be addressed through this project. Committee members generally agreed with the Board’s proposed approach for defining the project’s scope, as they thought it would ensure the project focuses on the most significant and pervasive challenges that can be addressed without negatively impacting the quality of information provided to users. The Committee also discussed application issues in Section 3031, Inventories, Section 3110, Asset Retirement Obligations, and Section 3856, Financial Instruments,in Part II of the CPA Canada Handbook – Accounting Standards for Private Enterprises (ASPE) that might be addressed through this project. The Board intends to use this feedback to help draft a consultation paper. The Board will discuss this feedback at its September 2024 meeting and will seek feedback on additional application issues from the Private Enterprise Advisory Committee, Not-for-Profit Advisory Committee, and Small Practitioners Working Group at their meetings in October and November 2024.

The AcSB discussed the scope of its Detailed Review of Accounting Standards for Private Enterprises. The Board approved an approach to determine which issues will be addressed as part of this project. The approach aims to ensure the project focuses on issues that arise from unnecessarily complex, onerous, and/or costly requirements in Part II of the CPA Canada Handbook - Accounting, considering the needs of and benefits to financial statement users. The approach seeks to capture only the most significant and pervasive issues within the scope of this project. Additionally, the approved approach clarifies the types of issues that will be addressed through the Board’s guidance framework for domestic standards rather than through this project.