July 2020 - PP News & Views
- New COVID-related ASPE Guidance Published
- ASPE Briefing on New Agriculture Standard Released
- Group Audits Standard Changing
- Unpaid Fees Might Impair Independence
- CRA Extends Filing Deadlines
- Benefits Payments Continue Until Fall 2020
- Apply to be a Qualified Business Consultant
CPA Canada has published a new Financial Reporting Alert to help financial statements preparers and public practitioners identify potential impacts on financial statements under various sections of Part II of the CPA Canada Handbook as a result of the COVID-19 pandemic.
Topics covered include:
- going concerns;
- subsequent events;
- impairment of assets;
- financial instruments;
- revenue; and
- other considerations related to assets and liabilities.
Download the guidance and determine with your clients how their financial statements might be affected by the pandemic.
The Accounting Standards Board issued Section 3041, Agriculture in Part II of the CPA Canada Handbook – Accounting in November 2019. We encourage practitioners who serve this sector to learn more about this new accounting standard by downloading ASPE Briefing: Section 3041, Agriculture.
This briefing summarizes the new accounting guidance included in Section 3041 and provides illustrative examples on its application. It covers topics such as:
- scope and definitions of Section 3041;
- when to recognize agricultural inventories and productive biological assets in financial statements;
- measurement of agricultural inventories and productive biological assets; and
- presentation and disclosure considerations.
The Auditing and Assurance Standards Board has released CAS 600 (Revised). The Canadian proposals in this exposure draft reflect the proposed revisions to ISA 600, Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors) to:
- strengthen the auditor’s approach to planning and performance of a group audit; and
- clarify the interaction of ISA 600 to the other ISAs.
During uncertain economic times, practitioners might have difficulties collecting their fees from clients. It’s possible that long-overdue fees might create a self-interest threat to your independence. We remind members of the following guidance in Rule 204.4 (36):
Fees — Overdue
A self-interest threat may exist if fees due from an assurance client for professional services remain unpaid for a long time, especially if a significant portion is not paid before the assurance report for the following year is issued. Generally, the payment of such fees should be required before that report is issued. The following safeguards may be applicable:
- discussing the level of outstanding fees with the audit committee; and
- involving another member of the firm who is not part of the engagement team, or a professional colleague who is not a member of the firm, to provide advice or review the work performed.
Members are cautioned that the overdue fees might create the same threats to independence as a loan to the client. Therefore, members should consider whether, because of the significance of such threats, it is appropriate for the firm to continue to provide assurance services to that client.
To support Canadian businesses and tax preparers dealing with the impact of the COVID-19 pandemic, CRA has extended some of the filing deadlines for corporations and trusts to September 1, 2020.
The CRA has extended benefits payments until the end of September for those who are unable to file their 2019 tax return on time. For individuals who already receive the Canada child benefit, the GST/HST credit, or both, their estimated payments will be based on the information from their 2018 tax return. This also applies to temporarily extending GIS and Allowance payments if seniors’ 2019 income information has not been assessed.
If you are unable to file your clients’ 2019 return in time for it to be assessed by early September 2020, the estimated benefits and/or credits will stop in October 2020. Your client will then be advised to repay the estimated amounts that were issued to them starting in July 2020.
Encourage your clients who missed the June 1 deadline to file their tax returns as soon as possible in order to receive the right amount of benefits based on their 2019 tax return, and to ensure continuity of benefits beyond September 2020.
The Ministry of Agriculture needs your help to support BC farmers, processors, and Indigenous communities to recover from and adapt to COVID-19.
The Ministry is looking for qualified business consultants to support the delivery of the B.C. Indigenous Agriculture Development Program and the B.C. Agri-Business Planning Program. An advantage of qualifying as a business consultant for the Ministry of Agriculture is that eligible applicants to these programs can access funding for your services.
For information on how to apply, or the programs mentioned above, please email Agribusiness@gov.bc.ca.