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December 2020 - PP News & Views

CSRS 4200 Compilation Engagements and Disclaimers

CPABC’s professional standards advisors (at professionaladvisory@bccpa.ca) received several questions regarding the use of disclaimers either within or outside the scope of CSRS 4200. We would like to direct our members to the CSRS 4200 implementation tool, question 3, which discusses that no other form of communication, such as disclaimers, can be included or attached to financial information excluded from the scope of CSRS 4200, as per paragraph 3 of the standard.

Section 3065, Leases Updated in Knotia

The CPA Canada Handbook – Accounting, Part II (found in Knotia) was updated in November 2020. Among others, Section 3065, Leases was amended for optional lessee and lessor relief on accounting for COVID-19 related lease modifications, resulting in existing lease changes not being accounted for as a new lease when conditions are met, and is effective for years ending on or after December 31, 2020.

Forgivable Portion of CEBA to Be Included as Income When Received

In the wake of the COVID-19 pandemic, the Canadian federal government announced the Canada Emergency Business Account (CEBA) which provides interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced. A quarter of this loan (up to $10,000) may be eligible for forgiveness under certain conditions. The program was further expanded with additional loans up to $20,000 of which half of this additional amount may be forgiven. The forgivable portion should be included into income when received. Read the full article in the Public Practice News & Views Knowledge Base.

Form T2200 Declaration of Conditions of Employment

CPA Canada has provided member feedback to the CRA with suggestions to improve the preparation of the T2200 forms. This and other COVID-19 related news can be found here as soon as it is available.

CPA Canada Releases PACT

In November, CPA Canada released the Practice Management, Advisory, Compilations and Tax Guide (PACT). The PACT is the little sister to the PEG (Professional Engagement Guide) and has been developed with sole practitioners and small- to medium-sized practices (SMPs) in mind to help their staff perform compilation, tax, and various advisory services, as well as provide guidance on practice management topics. The PEG and PACT are sold on a subscription basis.

Steps to Take When You Suspect Your Instagram Profile is Being Misused

Many practitioners have increased the use of Instagram and other social media platforms to expand their personal and business networks during the pandemic. However, what happens when that online identity is misappropriated with the possible nefarious intention to spam, phish information, or otherwise confuse or victimize your contacts? Read the full article in the Public Practice News & Views Knowledge Base.