Updates to Accounting and Assurance Standards

A recent update to the accounting standards is now available on CPA Ontario’s knowledge hub and resources web page:

• Presentation and Disclosure in Financial Statements – A new standard, International Financial Reporting Standards (IFRS) 18, has been issued reshaping financial reporting and replacing International Accounting Standards (IAS) 1, Presentation of Financial Statements. IFRS 18 sets out the overall requirements for presentation and disclosure in financial statements and introduces new requirements such as three new defined categories and two new subtotals in the Statement of Profit and Loss and the disclosure of management-defined performance measures. It also enhanced aggregation and disaggregation requirements in the financial statements.
• The new Standard is effective for annual reporting periods beginning on or after January 1, 2027, with early application permitted.

• Less Complex Entities (LCE) - The Auditing and Assurance Standards Board (AASB) has decided not to adopt the International Standards on Auditing (ISA) for LCE. The Board believes the ISA for LCE would not adequately meet the needs of interested and affected parties in Canada nor serve the Canadian public interest. Following this decision, the AASB will continue to discuss possible alternative options for addressing the unique challenges faced by small and medium-sized entities and practitioners engaged in audits of LCEs.

Check out CPA Ontario’s knowledge hub and resources webpage regularly to stay informed of the latest developments in our profession.