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Accounting Standards for Private Sector Not-for-Profit Organizations

Scaling the Standards

Summary

As part of the AcSB’s 2022-2027 Strategic Plan, the AcSB committed to exploring scaling the standards for non-listed entities to better meet different reporting needs. 

Scaling the standards (or tiering) may mean providing accounting policy choices, changing disclosure requirements, or even adding new frameworks to the CPA Canada Handbook – Accounting (Handbook) to better meet the needs of entities of all sizes, and interested and affected parties.

The AcSB understands that in some circumstances, Part I of the Handbook (IFRS® Accounting Standards) may be too complex or onerous to apply. At the same time, Parts II (accounting standards for private enterprises) or III (accounting standards for not-for-profit organizations) do not sufficiently meet users’ needs. The Board is also aware of smaller private enterprises and NFPOs that consider Parts II and III too complex for their needs and their financial statement users.

As a result, the concept that “one size does not fit all” when it comes to the reporting needs of Canadian entities continues, and a scaled approach to financial reporting in Canada is needed. 

Note: Follow the AcSB’s project, Evaluating the Preface, which is linked to Scaling the Standards. Both projects are focused on ensuring the diverse landscape of Canadian entities – both reporting and non-reporting – as well as financial statement users are best served by the Preface and current standard-setting frameworks.

Staff Contact(s)

Jamie Goodman, CPA, CA Principal, Accounting Standards Board

Matthew Bishop, CPA, CA Principal, Accounting Standards Board

Project Status

  • Information gathering

    The AcSB is conducting research to help it develop proposals relating to scaling the standards

    The AcSB expects to release a Consultation Paper in March 2023

  • Approving project
  • Consulting stakeholders
  • Deliberating feedback
  • Final pronouncement

Webinar – Scaling the Standards

Explore what scaling the standards means, the research the AcSB has been doing in this space, and potential scalability solutions identified by the AcSB so far.

News


March 22, 2023

Meeting, Resource, Webinar

Webinar – Scaling the Standards

The size and complexity of Canada’s private enterprises, not-for-profit organizations, and pension plans are varied. Could changing the existing accounting standards through scaling better meet the needs of those who develop financial statements for these types of entities – and those who use them? Join the AcSB for our webinar to explore scaling our standards and get a general update on our other domestic projects. Taking place on April 11, 2023 (English) and April 12, 2023 (French).

Meeting & event summaries


March 8, 2023

March 8, 2023

AcSB Decision Summary – March 8-9, 2023

The AcSB discussed a final draft of its “Consultation Paper I – Exploring Scalability in Canada.” Subject to minor amendments, the Board approved the Consultation Paper and plans to issue it at the end of March 2023.

March 2, 2023

AcSB Decision Summary – February 15, 2023

The AcSB discussed and approved an outreach and communications plan for its consultation paper on its strategic initiative related to scaling the standards, as set out in the 2022-2027 Strategic Plan.

The AcSB also gave permission to begin the balloting process. The Board plans to issue the consultation paper at the end of March 2023.

February 7, 2023

AcSB Decision Summary – January 26, 2023

The AcSB reviewed a revised draft of its consultation paper on its strategic initiative related to scaling the standards, as set out in the 2022-2027 Strategic Plan. The AcSB will review and approve the final consultation paper at its March 2023 meeting. The Board expects to issue the consultation paper at the end of March 2023.

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.