Accounting Standards for Private Enterprises

Revenue

Summary

The Accounting Standards Board (AcSB) has 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.

Staff Contact(s)

Ingrid McDonald, CPA, CA

Principal, Accounting Standards Board

Project Status

  • Information gathering

    Completed prior to July 2018

  • Approving project

    The AcSB approved the project in July 2018

  • Consulting stakeholders

    Developing consultation plan

  • Deliberating feedback
  • Final pronouncement

Meeting & event summaries


February 7, 2019

Private Enterprise Advisory Committee Notes – February 7, 2019

The Committee provided feedback to staff on the draft Exposure Draft. In addition, the Committee advised that:

  • the AcSB consider providing transitional relief for the proposed guidance relating to multiple element arrangements; and
  • the proposed effective date should be January 1, 2021.

The Board will consider this input at its March 2019 meeting.

September 11, 2018

Private Enterprise Advisory Committee Notes – September 11, 2018

The Committee discussed the Board’s approved project to address stakeholders’ issues in Section 3400, Revenue, on the following topics:

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

The Committee considered the overall approach to the guidance that should be provided to address stakeholders’ issues raised. The Committee advised the Board that the proposed solutions retain the principles-based approach currently used in Section 3400. Therefore, the Committed suggested that rather than provide prescriptive guidance, the proposals should expand on the current principles, supplemented by illustrative examples when appropriate.

The Committee also discussed staff’s proposed solutions that looked to revenue guidance from various sources, including the superseded Emerging Issues Committee (EIC) abstracts in the pre-changeover standards in Part V of the Handbook and the IFRS® Standards and U.S. GAAP. The Committee considered whether the staff’s proposed solutions adequately addressed the issues raised by stakeholders and whether to suggest additional references.

July 17, 2018

AcSB Decision Summary – July 17, 2018

The Board approved a project to address stakeholders’ issues about insufficient guidance on accounting for revenue in Section 3400, Revenue, in Part II of the Handbook. The Board plans to propose additional guidance on the following topics:

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

In parallel with developing the proposed guidance, the Board will continue to examine the need for further improvements, including an assessment of retaining the current risk-and-rewards model.

The Board will consult its Private Enterprise Advisory Committee and Not-for-Profit Advisory Committee in developing the proposals. The Board plans to issue an exposure draft in the first half of 2019.

News


October 23, 2018

News

Webinar – AcSB Domestic Standards Update

October 23, 2018. Are you a Canadian private enterprise or not-for-profit organization, an advisor to one, or a user of financial reports? Learn about upcoming and future changes to Part II and Part III of the CPA Canada Handbook. Tune in on October 30, 2018 (French) or October 31, 2018 (English).

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.