In Canada, accounting standards for all entities outside the public sector are issued by the Canadian Accounting Standards Board (AcSB). More than 10 years ago, the AcSB established four parts of the CPA Canada Handbook – Accounting (the Handbook).
Since the establishment of the Parts of the Handbook, Canada’s financial reporting landscape has evolved considerably. This includes extensive change in IFRS Accounting Standards since their initial adoption in Canada (which, for most publicly accountable enterprises, occurred for fiscal years beginning on or after January 1, 2011). The reporting needs of private enterprises, NFPOs, and pension plans have also changed. The AcSB is aware that there is significant diversity in each of these categories in terms of entities’ size and complexity. Accordingly, the information needs of financial statement users may vary. Investors and other stakeholders are also demanding more transparency and decision-useful information, beyond what is currently available in the traditional financial statements.
The AcSB’s 2022-2027 Strategic Plan identified three core strategies, all aimed at enhancing the relevance of financial information provided to Canadian stakeholders. As part of its core strategy of delivering relevant and high-quality accounting standards, the AcSB committed to exploring scaling the standards for non-listed entities to better meet stakeholders’ different reporting needs.