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Accounting Standards for Private Sector Not-for-Profit Organizations

Financial Statement Concepts

Summary

The Accounting Standards Board (AcSB) is exploring ways to improve Section 1000, Financial Statement Concepts, and Section 1001, Financial Statement Concepts for Not-for-Profit Organizations, in Parts II and III of the CPA Canada Handbook – Accounting, respectively.

The AcSB is considering feedback from its Private Enterprise Advisory Committee and Not-for-Profit Advisory Committee on how financial statement concepts are currently used, and the challenges with applying them. As part of its research, the Board will review financial statement concepts to ensure that they continue to be fit for purpose for Canadian entities.

Staff Contact(s)

Mark Squire, CPA, CA Principal, Accounting Standards Board

Eric English, CPA, CA Principal, Accounting Standards

Project Status

  • Information gathering

    The AcSB is researching issues with Section 1000, Financial Statement Concepts, and Section 1001, Financial Statement Concepts for Not-for-Profit Organizations in Parts II and III of the CPA Canada Handbook – Accounting, respectively, to identify potential areas for improvement

  • Approving project
  • Engaging Communities
  • Deliberating feedback
  • Final pronouncement

Webinar – Domestic Accounting Standards Update (Fall 2024)

Register for this webinar to learn about current accounting standards projects and recent amendments in Parts II, III and IV of the CPA Canada Handbook – Accounting. Join us for the English webinar on November 6, 2024, or the French webinar on November 12, 2024. 

On-demand Webinar – Domestic Accounting Standards Update (Spring 2024)

Watch our recorded webinar to learn about current projects and recent amendments in Parts II, III, and IV of the CPA Canada Handbook – Accounting.

News


September 4, 2024

Resource, News

What You Need to Know about Financial Statement Concepts

The AcSB is undertaking a project to improve Financial Statement Concepts in Parts II and III of the CPA Canada Handbook – Accounting. Learn how this initiative can benefit both preparers and practitioners in practice, as well as the Board in standard-setting.

Meeting & event summaries


April 24, 2024

AcSB Decision Summary – April 24, 2024

The Accounting Standards Board (AcSB) received a summary of research performed to date on Section 1000, Financial Statement Concepts, and Section 1001, Financial Statement Concepts for Not-for-Profit Organizations, in Parts II and III of the CPA Canada Handbook – Accounting, respectively. Additionally, the Board considered a comparison of Canadian domestic financial statement concepts to frameworks in other jurisdictions.

The AcSB discussed feedback from its Private Enterprise Advisory Committee and Not-for-Profit Advisory Committee regarding how financial statement concepts are currently used and the challenges with applying those concepts. Further, the Board discussed what the intended use of financial statement concepts should be and agreed that they should not be used to replace or override authoritative accounting standards.

The AcSB then discussed the benefits of a potential financial statement concepts modernization project. The Board agreed that financial statement concepts in Parts II and III of the Handbook should be reviewed to ensure they are fit for purpose for Canadian entities. Additionally, the Board agreed that such a project should take a phased approach to identify any areas for improvement.

The AcSB will discuss a project proposal at its June 2024 meeting.

March 6, 2019

AcSB Decision Summary - March 6-7, 2019

The AcSB discussed a financial statement concepts project proposal for Parts II and III of the CPA Canada Handbook – Accounting. The Board approved the project to include:

  • elements (definition of an asset, liability, revenue and net assets);
  • recognition;
  • measurement;
  • presentation and disclosure; and
  • unit of account.

The Board directed the staff to prioritize work on the definitions of an asset and liability in conjunction with its ongoing domestic projects.

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 voting process.