March 6, 2024
Not-for-Profit Advisory Committee Meeting Notes – February 12, 2024
The Not-for-Profit Advisory Committee received an overview of financial statement concepts in Parts II and III of the CPA Canada Handbook – Accounting. In addition, the Committee considered a comparison of Canadian domestic concepts to conceptual frameworks in other jurisdictions.
The Committee discussed the purpose of financial statement concepts, including how they serve as foundational elements for the AcSB when developing accounting standards. Further, the Committee discussed how preparers and practitioners use these concepts when applying standards.
Committee members noted that preparers and practitioners use concepts to gain a deeper understanding of accounting standards and to aid in appropriate application of the standards. This includes areas which require professional judgment as well as areas in which accounting principles are developing.
The Committee discussed whether NFPOs require financial statement concepts that are different than those for for-profit enterprises. While some Committee members noted that there are differences in the purpose of financial statements for NFPOs, there is a need to keep the financial statement concepts in Parts II and III of the Handbook closely aligned.
The AcSB will discuss the Committee’s feedback at its meeting in April 2024 as part of its ongoing research on financial statement concepts.
March 1, 2024
Private Enterprise Advisory Committee Notes – February 7, 2024
The Private Enterprise Advisory Committee received an overview of financial statement concepts in Parts II and III of the CPA Canada Handbook – Accounting. Additionally, the Committee received a comparison of Canadian domestic concepts to conceptual frameworks in other jurisdictions.
The Committee discussed the purpose of financial statement concepts, including how they serve as foundational elements for the AcSB in the development of accounting standards. Further, the Committee discussed how preparers and practitioners use these concepts when applying standards.
The Committee discussed the location of concepts within the Handbook and considered whether concepts are an accounting standard or whether concepts should be included in the Handbook outside of accounting standards similar to the International Accounting Standards Board and the Financial Accounting Standards Board conceptual frameworks, which are separate sections outside of accounting standards.
Committee members noted that preparers and practitioners use concepts to gain a deeper understanding of accounting standards and to aid in determining proper application. This includes areas that require professional judgment, as well as areas in which accounting principles are developing. Committee members also noted that a decision framework for applying qualitative characteristics in financial statement concepts would improve consistency of application.
In April 2024, the AcSB will discuss the Committee’s feedback as part of the Board’s ongoing research on financial statement concepts.
October 3, 2019
AcSB Decision Summary – September 17-18, 2019
The AcSB discussed its research project to undertake a targeted review of the financial statement concepts in Parts II and III of the Handbook. The Board’s discussion considered the interaction between the financial statement concepts and its projects on Combinations and Contributions, and next steps on the Financial Statement Concepts project. The Board decided that the Combinations exposure draft and Contributions consultation paper will be used to gather feedback from stakeholders that will assist the Board in determining the future direction of the Financial Statement Concepts project.
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.