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Handbook Update – Section 3065, Leases

Section 3065, Leases was amended on November 2, 2020 to provide optional relief for both lessees and lessors on accounting for rent concessions received or granted as a result of the COVID-19 pandemic. These amendments are effective for fiscal years ending on or after December 31, 2020. Earlier application is permitted, including in financial statements not yet authorized for issue, so that the practical expedient is available for COVID-19-related rent concessions granted or received in 2020. Read more for further details on these amendments.

The amendments are now in Part I of the CPA Canada Handbook – Accounting. The amendments include deferring the effective date of IFRS 17 Insurance Contracts to January 1, 2023 and extending the temporary exemption of applying IFRS 9 Financial Instruments by two years to keep the effective dates aligned.

The IPSASB released Exposure Draft 74, IPSAS 5, Borrowing Costs – Non-Authoritative Guidance. The proposed non-authoritative guidance would add implementation guidance and illustrative examples to IPSAS 5. Canadian stakeholders can send comments to the IPSASB until March 1, 2021.

Hear about COVID-19-related financial reporting considerations under Parts II and III of the CPA Canada Handbook - Accounting and get an update on upcoming standard-setting proposals from the AcSB. Register today to attend a webinar on November 10, 2020 (English) or November 16, 2020 (French). 

Hear about the potential COVID-19 financial reporting considerations under IFRS® Standards and receive a brief update on upcoming international standard-setting documents for comment. Register today to attend this webinar on November 17, 2020 in English or French.

The Board discussed issues related to the IAASB’s project on Audits of Less Complex Entities and reviewed its response to the IAASB Auditor Reporting Post Implementation Review Survey. It also discussed the development of its 2021-2022 Annual Plan. Read the full Decision Summary for details.

The Board discussed topics such as Combinations, Leases, Insurance Contracts – plus much more. Read the Decision Summary for full details.

The Board submitted its comment letter responding to the IAASB’s Exposure Draft of ISA 600 (Revised), Special Considerations - Audits of Group Financial Statements (Including the work of Component Auditors). Read the AASB’s full response.

On September 30, 2020, the AcSB responded to the IASB’s Exposure Draft, issued in December 2019. The IASB’s proposals take significant steps forward toward enhancing the relevance of financial statements. The AcSB’s letter encourages the IASB to consider the balance between users’ needs for better information about financial performance, and the effort and level of professional judgment required of preparers to generate that information.

The AASB submitted its response letter to the IASB Exposure Draft, General Presentation and Disclosures on September 30, 2020. The AASB considered comments provided by external stakeholders who were consulted in combination with the AcSB. We also raised comments on the audit implications of bringing management performance measures into the financial statements and introducing a definition for unusual income and expenses.