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.