The objective of the Accounting Update is to provide practitioners and firms with an overview of recent changes to Accounting Standards for Private Enterprises (ASPE) and Accounting Standards for Not-for-Profit Organizations (ASNPO), as well as review the status of projects in 2022. The course will also review and discuss current exposure drafts and invitation to comment documents.

The course will review common financial statement presentation and reporting errors found by Practice Inspectors and our experience as Completed File monitors.

The course will examine recent ASPE handbook additions, standards issued with effective dates in 2023:

Cloud Computing Arrangements
In response to stakeholder input on the diversity of cloud computing arrangements, specifically concerns about the accounting for expenditures on implementation activities and the complexity involved in applying the existing guidance the AcSB published a AcG-20 Customers accounting for cloud computing arrangements on November 15, 2022.

In light of this, we will also delve a bit more about exposure drafts.

Related Party Combinations
Following consultations on the different types of related party combinations undertaken by private enterprises and not-for-profit organizations, the AcSB decided that additional guidance and clarification was necessary to paragraph 44 of Section 3840. The exposure draft examines the AcSB’s proposed amendments to Section 3840 to address accounting for:
a) a combination between enterprises or businesses under common control; and
b) financial assets acquired or financial liabilities assumed in a combination between enterprises or businesses under common control.

The course will also examine active ASNPO projects, specifically the recent exposure draft on:

Contributions – Revenue Recognition and Related Matters
The exposure draft outlines the requirements of the new Section 4411, Contributions Received by Not-for-Profit Organizations and accompanying amendments to Section 4400, Financial Statement Presentation by Not-for-Profit Organizations, which will provide not-for-profit organizations (NFPOs) with guidance on accounting for contributions and would replace Section 4410, Contributions – Revenue Recognition and Section 4420, Contributions Receivable.

The course will also examine common practice inspection and monitoring findings in relation to the application of ASPE and ASPE
presentation and disclosure standards.