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The Future of Standards

Accounting Standards

Accounting Standards for Private Enterprises

New accounting standards for private enterprises have been issued. The new standards are effective for fiscal years beginning on or after January 1, 2011, with early adoption available. The CICA Handbook is being restructured and the new Accounting Standards for Private Enterprises are in Part II of the Handbook. 

The CICA is developing guidance including FAQs to assist you, as well as your clients if you are a practitioner. More information.

IFRS Standards for Publicly Accountable Enterprises (PAEs)

International Financial Reporting Standards (IFRS) replace Canadian GAAP for PAEs for fiscal years beginning on or after January 1, 2011. For updates, visit the CICA's Canadian Standards in Transition website.

The first time that most publicly accountable enterprises will provide external financial information using International Financial Reporting Standards (IFRSs) will be in their interim financial reports for the year of adoption of IFRSs. The Accounting Standards Board Staff Commentary on Interim Financial Statements in Year of Adoption of IFRSs reviews a few of the questions that might arise regarding presentation of interim financial statements in those reports.

Accounting Standards for Not-For-Profit Organizations (NPOs)

The strategic direction of financial reporting for Canada’s not-for-profit organizations has been decided. The Accounting Standards Board and the Public Sector Accounting Board finalized new accounting standards for private not-for-profit organizations, see links below.  These standards are effective January 1, 2012.

Accounting Standards Board 

Public Sector Accounting Board

Recent Developments in Global Financial Markets

See the ACSB's "Responses to Financial Turmoil" 

Assurance Standards

Auditing Standards

International Standards on Auditing (ISAs) have been adopted in Canada in concert with the International Auditing and Standards Board's (IAASB) Clarity Project. These ISAs are effective in Canada (as CASs) for periods ending on or after December 14, 2010.  More details.

CSQC 1, Quality control standard

The new quality control standard for firms, CSQC1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements and Other Assurance Engagements, which replaces GSF-QC, General Standards of Quality Control for Firms Performing Assurance Engagements, became effective on December 15, 2009. This standard has an earlier effective date than the CASs to ensure that a firm's system of quality control is in place in time to properly support the application of the CASs.

There is one significant difference between the GSF-QC and CSQC 1 in terms of who is able to conduct the inspection of completed engagements as part of the monitoring process. CSQC 1 is a more rigorous standard in this respect, and states that the inspection of completed engagements must not be undertaken by persons who were either involved with the engagement team or the engagement quality control review (if such a review was conducted.)    

Refer to the September 2009 Risk Alert (see link below) for information about transitional requirements to deal with the differences between existing standards and CSQC 1 regarding: the date of completion of the engagement quality control review for audits; new engagement quality control procedures; and the time limits after the engagement reports have been finalized (and audit report dated) to complete the assembly of the final audit file.

Further guidance

See the AASB's:

January 2009 Risk Alert "Auditing Considerations in the Current Economic Environment" 

March 2009 Risk Alert "New Quality Control Standard for Firms". 

September 2009 Risk Alert "CSQC 1 - Transition Issues"