This newsletter presents a summary of new Canadian GAAP pronouncements relevant to financial statements prepared for 2008 (updated to June 30, 2008 and including CICA Release No. 49, July 2008).
The following 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. 2008-04-03 Closing the GAAP: New Canadian GAAP Pronouncements Affecting 2009 Financial Statements (updated to March 31, 2008) is superseded by this newsletter. Developments since the previous newsletter, if any, are highlighted in grey below.
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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 3855 was amended in July 2008 to (i) provide certain accounting policy choices to non-publicly accountable enterprises and not-for-profit organizations for interim and annual financial statements for years beginning on/after August 1, 2008, and (ii) permit non-publicly accountable enterprises to elect the date of adoption of CICA 3855 as the transition date for recognizing embedded derivatives. Early adoption is permitted. |
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.
Amended in July 2008 to reduce disclosure requirements for non-publicly accountable enterprises. Amendments apply to interim and annual financial statements relating to years beginning on/after August 1, 2008. Early adoption is permitted. |
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.
Amended in July 2008 to exempt non-publicly accountable enterprises from quantitative market risk disclosures, applicable for interim and annual financial statements relating to years beginning on/after August 1, 2008. Early adoption is permitted. |
EIC 104 | Refundable taxes, future income tax calculations and available-for-sale securities
Amended on February 25, 2008 to address refundable taxes related to available-for-sale financial assets. Applies retrospectively to the date of adoption of CICA 3855. |
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. |
EIC 170 | Conversion of an unincorporated entity to an incorporated entity
Considers how the incorporation of a previously unincorporated entity should be reflected for financial reporting purposes, as well as several other issues related to such conversions.
Effective for all conversions completed after April 2, 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.
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