September 2020 - PP News & Views
- New Agreed-Upon Procedures Engagements Standard Approved
- NPO Contribution Consultation Paper Released
- PSAB Defers Effective Date
- Check Out CPA Canada Tax Blog
- Resources for Operating in the Post-Pandemic World
- Providing Business Guidance on COVID-19 Issues
- Latest Report from Taxpayers’ Ombudsman Published
- Register for Dedicated Telephone Service at CRA
- New Resource Coming from CPA Canada
Do you perform “specified auditing procedures” engagements? If so, you need to be aware that the Auditing and Assurance Standards Boards issued Canadian Standard on Related Services 4400 in August 2020 that will be effective for agreed-upon procedures (AUP) engagements for which the terms of engagement are agreed on or after January 1, 2022.
Learn about how this new standard addresses emerging demands for AUP engagements and promotes consistent performance by practitioners by reading the new post on the Audit Quality Blog at CPA Canada.
The Accounting Standards Board has issued a consultation paper to seek input on accounting for contributions and related topics by not-for-profit organizations (NPOs).
This consultation paper aims to obtain broad input and data from NPO stakeholders, including users, preparers, and practitioners on accounting for revenue from contributions and on related matters. This feedback will help the Board decide on the project’s direction related to accounting for contributions.
This consultation paper was issued with an extended comment period to provide stakeholders more time to respond in light of COVID-19. We encourage practitioners serving the NPO sector to review and respond by December 15, 2020.
Over the last several months, the COVID-19 pandemic significantly disrupted the business and activities of many public sector organizations. The Public Sector Accounting Board reviewed possible options to respond to the pandemic and approved deferring the effective dates of all upcoming standards by one year. This deferral applies to new standards on revenue, foreign currency translation, financial instruments, and asset retirement obligations.
Keep up-to-date on the latest tax discussions between CPA Canada, the Canada Revenue Agency, and the federal Department of Finance by checking out Bruce Ball’s blog. Bruce is the Vice-president of Taxation at CPA Canada and meets regularly with staff from CRA and the finance department.
As not-for-profit organizations (NPOs) begin to resume operations, they will face unique challenges in the post-pandemic world. Check out the variousresources that CPA Canada has collected to help NPOs face challenges in risk planning, financial reporting, and operational considerations.
Smaller business clients will likely ask CPA practitioners for help with emerging business issues resulting from COVID-19. Learn about these issues and the guidance available to help you advise on them.
In addition, download A Practical Approach to Managing Risks for Small- to Medium-sized Organizations for guidance to implementing enterprise risk management to achieve strategic objectives in uncertain, unpredictable, and volatile times.
The Taxpayers’ Ombudsman announced the publication of her 2019-2020 Annual Report, Transformation through Disruption, accompanied by her final statement reflecting on her time in the role. Sherra Profit also recently released two final publications, a systemic examination report, Back to Basics, and paper, Taxpayer Rights in the Digital Age.
Visit the reports and publications page of the Office of the Taxpayer’s Ombudsman website for the full range of publications available.
The Dedicated Telephone Service (DTS) is now a permanent CRA program available nationally.
By using the service, income tax service providers can connect with experienced CRA officers from the Income Tax Rulings Directorate who will be able to help them interpret the provisions of the Income Tax Act. After determining the nature of the tax issue, these officers will carefully consider the question and then send the service provider helpful information and guidance.
While these officers do not have access to individual taxpayers’ accounts, the DTS is a valuable technical resource to help service providers resolve their interpretive tax issues.
To register, small- and medium-sized income tax service providers – those with 50 or fewer partners – are invited to fill out and send the completed DTS registration form to firstname.lastname@example.org. You can also visit the DTS web page for further information about the service, including eligibility criteria and more details on how the service can help.
CPA Canada will be releasing PEG PACT (Practice Management, Advisory, Compilations and Tax) in November 2020.
The PACT is geared towards practitioners that perform bookkeeping, compilations, tax and other advisory services and who may also need some guidance on practice management topics.
The PACT is being developed with the needs of small- to medium-sized practitioners in mind. As the acronym suggests, it is meant to provide useful guidance, templates and links to other resources for topics related to practice management, advisory, compilations and tax.
For the 2020 edition, the PACT will consist of the following:
- Adopted from the PEG: Resources on the new CSRS 4200 compilation engagements standard as well as the existing Section 9200 compilations, practice aids (templates, letters and reports), an illustrative case study, including detailed sample completed forms and a step-by-step guide to completing compilation engagements that address the key requirements and concepts in the professional standards (Canadian Standard on Related Services, CSRS 4200 – Compilation Engagements).
- Various tax engagement letters (personal, corporate, trust, consulting, compliance, and partnership), transmittal letters (personal and corporate) and tax preparation checklists (personal, corporate and trust).
- Bookkeeping engagement letter and other relevant checklists.
- Access to various practice management and advisory articles from CPA Canada.
- A one-stop PACT Resource Centre, available through Knotia.ca, providing links to relevant practice management and advisory topics from the provincial institutes, International Federation of Accountants, and other relevant sources.
CPA Canada will continue to develop more resources and will update the guide throughout the year with relevant articles, links, and other resources.
The PACT will be available as a subscription for $355 (up to five users). For current PEG subscribers, there will be a discount offered to purchase the PACT for $175. The discount code will be available on Knotia.ca on the PEG Resource Center page when the guide is available for sale.