2008-04-02 Closing the GAAP: New Canadian GAAP Pronouncements Affecting 2008 Financial Statements (updated to March 31, 2008)

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The following presents a summary of new Canadian GAAP pronouncements relevant to financial statements prepared for 2008 (updated to March 31, 2008 and including CICA Release No. 48, February 2008). It summarizes Canadian GAAP pronouncements that must be applied, if applicable, for the first time in 2008 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. 2008-01-11 Closing the GAAP: New Canadian GAAP Pronouncements Affecting 2008 Financial Statements (updated to December 31, 2007) is superseded by this newsletter. Developments since the previous newsletter, if any, are highlighted in grey below.

Reference

 Pronouncement and Effective Date
CICA 1400
 Assessing going concern

Amended to include requirements for management to assess and disclose an entity's ability to continue as a going concern. Effective for interim and annual financial statements for years beginning on/after January 1, 2008.
Reference Pronouncement and Effective Date
CICA 1530
CICA 3855
CICA 3865
 New requirements for financial instruments and hedging

Introduces new requirements for recognition and measurement of financial instruments (CICA 3855), hedge accounting (CICA 3865) and comprehensive income (CICA 1530).

Effective for private companies for annual financial statements for years beginning on/after October 1, 2007. These standards result in significant consequential amendments to other Handbook sections which are also effective at the same time.
CICA 1535
 Capital disclosures

Establishes disclosure requirements about capital. Effective for interim and annual financial statements relating to years beginning on/after October 1, 2007.
CICA 3031
 Inventories

Supersedes CICA 3030, establishing standards for the measurement and disclosure of inventories. Applies to interim and annual financial statements relating to years beginning on/after January 1, 2008.
CICA 3862
CICA 3863

 Financial instruments - disclosures and presentation

These new sections, CICA 3862 (on disclosures) and CICA 3863 (on presentation) replace CICA 3861, revising and enhancing its disclosure requirements, and carrying forward unchanged its presentation requirements. Effective for interim and annual financial statements for years beginning on/after October 1, 2007. Implementation guidance has been added to CICA 3862 in March 2007.
EIC 169
 Determining whether a contract is routinely denominated in a single currency

Considers (i) how the term “routinely denominated” in CICA 3855.A34(d) should be interpreted, and (ii) what factors can be used to determine whether a contract for the purchase or sale of a non-financial item such as a commodity is routinely denominated in a particular currency in commercial transactions around the world.

Applies for financial statements issued for interim and annual periods ending on or after March 15, 2008.

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.