2009-10-20 Closing the GAAP: New Canadian GAAP Pronouncements Affecting 2011 Financial Statements (updated to September 30, 2009)

This newsletter presents a summary of new Canadian GAAP pronouncements relevant to financial statements prepared for 2011 (updated to September 30, 2009, and including CICA Release No. 55, August 2009).

The following summarizes Canadian GAAP pronouncements that must be applied, if applicable, for the first time in 2011 to a company with a calendar year-end that is preparing financial statements in accordance with Canadian GAAP.

The listing includes the following pronouncements:

  • CICA Accounting Handbook Sections (“CICA”)
  • CICA Accounting Guidelines ("AcG")
  • Emerging Issues Committee Abstracts of Issues Discussed (“EIC”)

This newsletter will be updated quarterly. Newsletter 2009-07-03 Closing the GAAP: New Canadian GAAP Pronouncements Affecting 2011 Financial Statements (updated to June 30, 2009) is superseded by this newsletter.

Developments since the previous Newsletter, if any, are highlighted in grey below.

Reference
 Pronouncement and Effective Date
CICA 1582
CICA 1601
CICA 1602









 Business combinations, consolidated financial statements and non-controlling interests

These sections replace the former CICA 1581, Business Combinations and CICA 1600, Consolidated Financial Statements and establish a new section for accounting for a non-controlling interest in a subsidiary.

These sections provide the Canadian equivalent to IFRS 3, Business Combinations (January 2008) and IAS 27, Consolidated and Separate Financial Statements (January 2008).
CICA 1582 is effective for business combinations for which the acquisition date is on/after the beginning of the first annual reporting period beginning on/after January 1, 2011. CICA 1601 and CICA 1602 apply to interim and annual consolidated financial statements relating to years beginning on/after January 1, 2011.
CICA 1625
CICA 3251

 Conforming amendments

CICA 1625, Comprehensive Revaluation of Assets and Liabilities, has been amended as a result of issuing CICA 1582, 1601, and 1602 described above. Effective prospectively for comprehensive revaluations of assets and liabilities occurring in years beginning on/after January 1, 2011.

CICA 3251, Equity, has been amended as a result of issuing CICA 1602. Amendments apply to entities that have adopted CICA 1602. 
Reference
 Pronouncement and Effective Date
CICA 3855
 Financial instruments - recognition and measurement

Amended to clarify when an embedded prepayment option is separated from its host debt instrument for accounting purposes. Amendments apply to interim and annual financial statements relating to years beginning on/after January 1, 2011.

While we have attempted to make this newsletter as complete as possible, it may not include all changes or modifications to existing authoritative literature that may affect a particular enterprise.