November 2024 Exposure Draft Updates
Exposure Draft – Compilation of Future-Oriented Financial Information and Pro Forma
The Auditing and Assurance Standards Board issued an exposure draft proposing to replace Assurance and Related Services Guideline (AuG) 16, Compilation of a Financial Forecast or Projection, with a new Canadian Standard on Related Services (CSRS) 4250, Compilations Engagements on Future-oriented Financial Information and Pro Forma. This exposure draft also proposes limited consequential amendments to CSRS 4200, Compilation Engagements.
The purpose of proposed CSRS 4250 is to address the inconsistencies in reporting and performance requirements between AuG-16 and the new compilation engagement standard (CSRS 4200) and to also address confusion in relation to the appropriate level of work effort and documentation in a compilation engagement under AuG-16. Comments are requested by January 7, 2025.
Exposure Draft – Equity Method of Accounting – IAS 28 Investments in Associates and Joint Ventures
The International Accounting Standards Board issued an exposure draft proposing amendments to IAS 28 to add to and clarify how to apply the equity method. New disclosure requirements to enhance the information companies provide about these investments are also proposed to IFRS 12, Disclosure of Interests in Other Entities and IAS 27, Separate Financial Statements. The exposure draft does not specify an effective date for the amendments. Comments are requested by January 20, 2025.
Re-Exposure draft – Employee Benefits, Proposed Section PS 3251
The Public Sector Accounting Board issued a re-exposure draft in response to feedback received from interested and affected parties on the Exposure draft, Employee Benefits, Proposed Section PS 3251 issued in July 2021. This re-exposure draft clarifies and simplifies the previously exposed amendments related to the discount rate for defined benefit plans. Proposed Section PS 3251 would replace Section PS 3250, Retirement Benefits and Section 3255, Post-employment Benefits, Compensated Absences and Termination Benefits. Comments are requested by January 20, 2025.
IPSASB Exposure draft – Tangible Natural Resources
The International Public Sector Accounting Standards Board issued an exposure draft proposing a definition of tangible natural resources, as well as guidance on the recognition, measurement, display and disclosure of tangible natural resources. Prior to the development of this exposure draft, there was no explicit guidance on natural resources in IPSAS, or any other international accounting framework, so these resources were typically not reported in the general-purpose financial statements.
The Public Sector Accounting Board is encouraging Canadians to respond to this exposure draft so Canadian perspectives are considered in the development of the standard. Comments are requested by February 28, 2025.
For questions, please contact CPA Ontario’s Professional Advisory Services at 416 204.3106 or 1 800 387.0735, ext. 4456 or by email.