February 2020 - PP News & Views
- Auditor Reporting Guide Updated
- Guidance on Financial Instruments Available for Free Download
- Read Basis for Conclusions of New Agriculture Standard
- Read Background Information of Revised Revenue Standard
- The Auditing and Assurance Standards Board Needs You
CPA Canada has updated its Reporting Implications of Canadian Auditing Standards to address recent changes in auditing standards.
The purpose of this publication is to promote consistency in the form and content of practitioners' reports by providing guidance with respect to commonly occurring circumstances. This guide does not amend or override auditing or review standards, the texts of which alone are authoritative, nor does it necessarily address all audit reporting changes resulting from the Canadian Auditing Standards (CAS).
The guide consists of a series of issues presented in Q&A format and illustrative reports. They are designed to help you understand and apply requirements and supporting guidance issued by the Auditing and Assurance Standards Board relating to reporting.
Changes in this 4th edition include:
- A new chapter on key audit matters to assist the auditor when CAS 701, Communicating Key Audit Matters in the Independent Auditor's Report applies;
- The Q&As summarize how key audit matters are to be communicated in the auditor's report and the reporting implications on key audit matters when the auditor is found to be in different reporting situations;
- New Q&As have been added to Chapter 2: Addressing and Dating of the Report, Chapter 12: Group Audits, and Chapter 14: Other Information; and
- A new illustration has been added to Chapter 14.
CPA Canada has made another chapter from its Guide to Accounting Standards for Private Enterprises publication available for free download.
Chapter 45: Financial Instruments provides detailed guidance on the application of Section 3856 Financial Instruments from Part II of the CPA Canada Handbook – Accounting. The chapter includes various tools including illustrative examples, decision trees, summary charts, explanatory material, and relevant excerpts from the Handbook.
Topics in this chapter include:
- purpose and scope of Section 3856;
- overview of Section 3856 key requirements;
- relevant definitions;
- recognition, measurement and classification considerations;
- presentation requirements;
- hedge accounting; and
- disclosure requirements.
The Accounting Standards Board has released into the CPA Canada Handbook the new Section 3041 Agriculture, effective for annual periods beginning on or after January 1, 2021.
You can find the background information and basis for conclusion related to the development of this new standard on the Financial Reporting & Assurance Standards Canada website under Plain Language Resources.
The Accounting Standards Board has released into the CPA Canada Handbook the amended Section 3400 Revenue, effective for annual periods beginning on or after January 1, 2021.
You can find the Background Information and Basis for Conclusion related to the revisions of this standard on the Financial Reporting & Assurance Standards Canada website under Plain Language Resources.
The Auditing and Assurance Standards Board is seeking a new member. If you’re interested in contributing to the standards setting process in Canada, check out the details posted on the Financial Reporting & Assurance Standards Canada website and apply by February 28, 2020.