IN THIS ISSUE . . .
ICANS¶ 2013 Convocation
ICANS¶ 2013 High School
PD On-Line Reporting
ICANS¶ 2012-2013 PD Program
CICA Media Release re:
Appointment of Financial Literacy
CICA Media Release re: 3rd Audit
Quality Discussion Paper
Fast-Track to Standards
Financial Reporting & Assurance
Standards Highlights (AcSOC,
AcSB, PSAB, AASOC & AASB)
Newsletters of Interest
Adoption of New NPO Accounting
New NPO Resources
Withdrawal of Pre-CAS Handbook
Events of Interest
More Events of Interest
Federal Budget Commentary
Reminders and Important Dates
E-SCAN is a monthly newsletter distributed electronically as a means of maintaining timely communication of, and encouraging a dialogue on, topics relevant to Chartered Accountants
and students of the Nova Scotia Institute. Copies of recent issues can be obtained from the Institute website at www.icans.ns.ca.
CONVOCATION 2013 CELEBRATES UFE GRADS AND NEW FCAs
Despite blizzard-like conditions, more than 700 people gathered at the World Trade & Convention Centre in
Halifax on Saturday, February 9, 2013, to celebrate the success of those who passed the 2012 UFE and
to recognize ICANS¶ newest FCAs. And, while the storm howled outside, the atmosphere inside the
Convention Centre¶s Grand Room was warm and festive, illuminated by dazzling star lighting, balloons and
shimmering drapery. It was here where members, graduates, and their families mingled, enjoyed a
full-course dinner, paid tribute to the honourees and danced to the tunes of Sound Castle.
Emceeing the event was ICANS¶ Vice-President Grant Galbraith, FCA,
who introduced special guests, which included greetings from Nova
Scotia Premier Darrell Dexter (provided via pre-recorded video).
Later in the evening, Katrina Roefs, the UFE Class of 2012¶s
valedictorian, addressed the audience and referred to Convocation
as, ³A magnificent celebration to end this part of our (the graduates¶)
journey; (it) confirms the importance of our accomplishment here
tonight.´ She also took the opportunity to thank the administration
and faculty of ASCA for helping the students to achieve their
goal; the various employers and co-workers for their support and
mentorship; and all the family members for their patience and
encouragement. Near the conclusion of her remarks, Katrina
praised her classmates for all their hard work, adding: ³As our
class celebrates tonight, we should also look to the future; we
are all privileged to be entering this profession. A designation
like this will be the backbone to our careers, and will open many
doors. We should all continue to strive for excellence, take the skills we have learned, and build on
them as we take our next steps.´
Many of Katrina¶s thoughts were echoed by ICANS
President Ted Doane, CA, who, in his remarks,
reminded the graduates that, while the journey was
likely different for each of them, they all share the
common factor of being persistent. Ted even cited
Katrina¶s confession of wanting to ³give up´ and
congratulated her and all the graduates for their
determination, drive and dedication to achieve a
Ted also talked about the importance of good mentors
and remarked that the ³collective wisdom of our new
FCAs (Joyce Carter, Paul Jewer, David Saxton, Greg
Simpson and Mark Winfield) would be off the charts!´
That said, some of the most memorable remarks in his speech included quotes from Dr. Seuss's
classic, Oh the Places You’ll Go!, including this send off to the graduates: ³You have brains in your
head. You have feet in your shoes. You can steer yourself any direction you choose. You¶re on your
way. And you know what you know. And YOU are the one who¶ll decide where to go.´
Looking back, it was indeed, a memorable night. To all who braved the weather to join in this tribute
to recognize the success of those who passed the UFE and of those whose careers have brought
honour to the profession — we thank you. Convocation represents new beginnings and celebrates
where the journey can take you, yet, more than anything, it reminds you to stop and enjoy the
Grant Galbraith, FCA
UFE Class of 2012 Valedictorian
ICANS’ President Ted Doane, CA
See page #2 for graduates’ group photo and pics of the FCA presentations.
February 2013, Page 2
Back Row (L to R): Brian MacInnis, Christopher MacIsaac, Daniel Putnam, Devin Aalders, Scott Boucher, Iain Fraser, Ryan DeCoste, Neil Smith, Daniel Morgan, Andrew Bonner,
Matthew March, Philippe Gaudet, Julien LeBlanc and Darcy MacDonald.
Row #3 (L to R): Ashley Anderson, Sandra Wist, Jaime MacDonald, Amy Ingram, Michael Dwyer, Matthew Denney, Colin Spindler, Kevin Whitwham, Andrew Plant, Brian Orlando,
Alexander Grant, Janice Villagomez, Karen MacCormick, Elizabeth Whitman, Ashley Lochead, Michael Nemec, Brittany Davison, Teresa Gannon, Alexandra Hirsch, Sara Munden,
Leanne McCarvill, Karen Young and Katrina Roefs.
Row #2 (L to R): Jennifer Cullen, Laura Sloan, Laura Roseveare, Hayley Nicol, Crystal Smith, Stéphanie Turner-Chiasson, Lisa Metlej, Laura Margeson, Amanda Lynch, Courtney
Stevens, Jenna Welch, Weiwei (Vivi) Wang, Chuanyun (Winnie) Xu and Jocelyn Glynn.
Front Row (L to R): Sean Stager, Renaud d¶Entremont, Jeffrey Byrne, Matt Stone, Michael Belliveau, Ryan MacNamara, Christopher Mossop, Alister Hunston, Benjamin Quek, Jerry
Abraham, Sean Hogan and Mike MacDonald.
Missing from Photo: John Barry, Christopher Ellis, Chace Hynes, Michael Lutes and Fraser Parke.
UFE CLASS OF 2012
ICANS’ 2012 FCAs
Above: David Saxton
receives his FCA from
ICANS’ President Ted
Left: Paul Jewer receives his FCA from
ICANS’ President Ted Doane, CA.
Above: Greg Simpson (centre)
receives his FCA from his wife,
Tanya Simpson, CA, and his brother,
Mark Simpson, CA.
Above: Joyce Carter
receives her FCA from
ICANS’ President Ted
Above: Mark Winfield receives his
FCA from ICANS’ President Ted
February 2013, Page 3
UNITING THE CANADIAN ACCOUNTING PROFESSION
CAs, CMAs and CGAs in BC Issue Announcement
— On February 26, 2013, the Certified General Accountants of British
Columbia (CGA-BC) issued an announcement to its members stating that the CGA-BC Board of Governors has chosen to re-enter the
discussions with the Institute of Chartered Accountants of British Columbia (ICABC) and CMA British Columbia (CMABC) to support the
unification of the accounting profession currently taking place across Canada. Given the progression of CPA, both provincially and
nationally, the CGA-BC Board said it recognizes that it is in the best interests of its members, students and the public to re-enter the
unification discussions within BC. The CA and CMA bodies in British Columbia issued a joint communication update to their members and
the welcomed the return of CGA-BC to the unification discussions. ICABC and CMABC will continue to move forward with their unification
process and will bring CGA-BC up-to-date on the status of the merger as they consider their next steps in rejoining talks.
CA Manitoba and CMA Manitoba Sign Agreement to Pursue Merger and Establish CPA Manitoba
February 7, 2013, the CA and CMA bodies in Manitoba announced to their members that the leadership of the Institute of Chartered
Accountants of Manitoba (CA Manitoba) and the Society of Certified Management Accountants of Manitoba (CMA Manitoba) have signed
a formal agreement to pursue a merger. Accordingly, the two organizations will work together to establish the Chartered Professional
Accountants of Manitoba (CPA Manitoba) and together they are working with the provincial government on legislation to create CPA
Manitoba. Click here to review the member communication.
CPA News E-alerts — You can subscribe or unsubscribe to
e-alerts re: updates to the CPA Canada News page by
clicking here: http://cpacanada.ca/ealert. Every time a µNews¶
item is added/changed, you¶ll receive an email.
UNIFICATION DISCUSSION RESOURCES
(access the following and more at: http://cpacanada.ca/resources/)
CPA Canada Update Released
— The January 2013 issue of CPA Canada Update has been released. Click here to read about
the latest unification developments.
Video Presentation on the CPA Certification Program
— A critical part of the discussions regarding the unification of the
Canadian accounting profession involves the development of a new CPA certification program. Tashia Batstone, FCA, MBA, Co-Chair,
CPA Certification Steering Committee, discussed key components of the CPA certification model, timing and transition at the June 2012
CAAA conference. To watch the brief video (approx. 20 min.), click on: http://www.youtube.com/watch?
v=aGP7d3X0WFo&feature=youtu.be. To view a PowerPoint slide presentation of the program, click on: http://cpacanada.ca/wp-content/
Academic Paper Outlines Potential Benefits of Unification for Self-Regulation
— An academic analysis authored
by William Lahey LLM, Associate Professor, Schulich School of Law, Dalhousie University, concludes that unification would strengthen
and streamline the profession¶s self-regulatory function and enhance its capacity to fulfill its ultimate self-regulatory mandate to protect and
advance public interest. To access a summary of the paper, including a link to the full report, click here: http://cpacanada.ca/wp-content/
ICANS’ 2013 HIGH SCHOOL SCHOLARSHIP AWARDS
Attention all families with senior high school students . . . ICANS¶ 2013 Scholarship Award applications are now available!
As per tradition, ICANS is offering four, $1,000 scholarships awards to students who are graduating in June 2013 and who
will be attending university in September 2013 to pursue a bachelors degree in business or commerce. Scholarship
applications have been mailed to every high school in Nova Scotia, emailed to guidance counselors and posted on the
ICANS website. To access a form, click on: http://www.icans.ns.ca/news-and-events/item72178.pdf.
Note: the deadline to submit applications is April 26, 2013. Questions? Please contact ICANS¶ Communications
Consultant Joy Barkhouse at email@example.com or by calling (902) 425-3291 ext. #29.
February 2013, Page 4
APPOINTMENT OF FINANCIAL LITERACY LEADER NEEDED: CICA
The CICA issued a media release on February 7, 2013 to announce that it firmly believes that a nationally coordinated effort involving many
stakeholders is required to improve the financial literacy of Canadians. The media release went on to state that on February 7th, the CICA
appeared before the Standing Senate Committee on Banking, Trade and Commerce in Ottawa to offer its support for Bill C-28. The Bill
establishes the legislative framework to appoint a Financial Literacy Leader to coordinate a national effort aimed at helping Canadians become
better money managers.
³Financial literacy requires life-long learning and it must start with our children and youth,´ explains Nicholas Cheung, a Director with the CICA,
who made the organization¶s presentation. ³Out research shows that most people surveyed for the CICA in 2012 want more than just parents or
guardians involved. They also feel schools, the financial services sector and government all have roles to play.´
The media release indicated that the CICA would welcome participating in a coordinated approach to assist Canadians in gaining the financial
skills, knowledge and confidence required to make the best choices for their circumstances.
³While many organizations are working toward a common goal of improved financial literacy for Canadians, no one organization can effectively
address all of the issues on its own,´ stresses Cheung. ³The appointment of a Financial Literacy Leader is the critical first step to achieving a
collaborative vision and effort. Helping Canadians develop financial knowledge is essential if we want a thriving economy.´
The CICA is planning to launch a new program in 2013 using its members to provide community-based financial education across Canada.
This initiative will be in addition to the CICA¶s financial literacy publications and online resources. To access the CICA¶s dedicated website to
financial literacy, click on: www.financialdecisionsmatter.com.
ICANS’ 2012-2013 FALL/WINTER PD PROGRAM
ICANS¶ Fall/Winter 2012-2013 PD Program continues. To view an updated PD calendar, visit:
http://www.icans.ns.ca/professional-development/item68869.aspx. And remember, you can register on-line — just go to the
ICANS¶ homepage at www.icans.ns.ca and click on the µMember Login¶ button.
PD Course Evaluations — Reminder to Provide Feedback
Completion of the PD course evaluation report is a very important step in the PD process. The evaluations are used to advise developing
authors of material issues or improvements, they are used when selecting topics to offer or reoffer, and they assist with the instructor selection,
as well as, providing feedback to instructors. Please complete your electronic course evaluation when received on a timely basis to ensure that
your comments are included in the reports being sent to the developing provinces and instructors. If you are having issues receiving the
electronic form, please complete the generic form that can be found on the ICANS website at http://www.icans.ns.ca/professional-development/
Questions? Contact ICANS¶ Membership Registrar Danielle Roode (firstname.lastname@example.org) or ICANS¶ Director of Professional Development
Kathie Slaunwhite (email@example.com). You can also call the ICANS Office at (902) 425-3291.
COMING SOON . . . PD ON-LINE REPORTING FUNCTIONALITY
We are pleased to inform our members that in March 2013, we expect to provide on-line functionality for
CPD reporting through the ICANS¶ website. This functionality will allow members to:
View details of their ICANS¶ PD learning activities;
Report their other PD activities;
View a log of their reported PD hours;
View a summary of hours completed for each year in a reporting cycle, as well as cumulative totals for the three-year cycle;
Submit their PD Report electronically; and
Request relief in relation to a member¶s inactive status, temporary leave from the workforce or extraordinary circumstances.
This functionality will enable members to record their 2012 PD hours and to file their 2012 PD Report. Further information will be forthcoming
once the functionality is operational. In the meantime, if you have any questions, please contact Danielle Roode, ICANS¶ Membership
Registrar, at firstname.lastname@example.org.
February 2013, Page 5
If you are interested in having copies of
ICANS¶ Recruitment Brochure to
distribute to students, please contact
or by calling
(902) 425-3291 (ext. 21)
To learn more about CA Training
Offices (CATOs), please visit
and click on the following button:
A NEW FAST-TRACK TO
Finding resources to assist in the application of
financial reporting and assurance standards
just got a lot easier. CICA¶s robust online
collection of resources that provide guidance
when applying the standards has been
reorganized in activity-related categories.
Whether you¶re preparing financial statements,
planning a transition to a new accounting
framework, applying Canadian Auditing
Standards (CASs) in a specialized sector, or
performing a broad-range of other standards-
related activities, visit http://www.cica.ca/
resources to make the job easier!
THIRD AUDIT QUALITY DISCUSSION PAPER ISSUED FOR CANADIAN CONSULTATION
The CICA and the Canadian Public Accountability Board (CPAB) issued a media release on February 5, 2013 to announce that the role of
audit committees is the focus of a third discussion paper produced for a consultation process seeking Canadian input on international
discussions that could affect our financial system.
The CPAB and the CICA launched the Enhancing Audit Quality (EAQ) initiative to gain broad Canadian stakeholder input on international audit
proposals. Regulators, policy makers and standard setters in Europe, the United States and other jurisdictions are considering changes to
improve confidence in the financial system. Audit quality is among the topics under review and audit committees are recognized as being
integral to the audit process.
³Leveraging the existing strengths of Canadian audit committees provides significant opportunities to improve the quality of the audit process
and, as a result, the reliability of financial reporting,´ explains David Brown, Chair of the EAQ Steering Group. ³It is essential that we hear from
Canadians with a stake in our sound financial system.´
Brown, a Canadian lawyer and former chair of the Ontario Securities Commission, heads the independent steering group overseeing the EAQ
consultation process. The steering body, made up of senior financial leaders, provides direction to three working groups focusing on the role of
the audit committee, auditor reporting and auditor independence.
³We are interested in hearing from stakeholders on whether they endorse or reject the views and recommendations contained in the discussion
paper,´ says Brown.
Recommendations include having audit committees conduct and publicly report on periodic comprehensive reviews of the auditor engaged.
This would address concerns about familiarity between audit firms and companies they audit. There is a perception that audit firms could
develop an overly close relationship with clients over time, which may create a threat to independence and impede the auditor from exercising
an appropriate level of professional skepticism. Another recommendation is for such reviews to assess the effectiveness of the external
auditors in fulfilling their responsibilities as a basis for recommending to the board of directors whether the auditor should be put forward for
The comprehensive reviews would be considerably more rigorous than annual assessments of the auditor¶s work and carried out every five
years. To facilitate the process, it is recommended that CPAB, and the audit firms it regulates, develop a protocol for increasing the information
made available to audit committees about CPAB inspection findings.
Previous discussion papers on auditor reporting and auditor independence were issued in 2012. A final report reflecting the results of the
consultation process will be produced and made public later this year.
More information about the consultation process can be found online at www.cica.ca/enhancingauditquality.
February 2013, Page 6
FINANCIAL REPORTING & ASSURANCE STANDARDS HIGHLIGHTS
Below are news highlights re: financial reporting and assurance standards in Canada. To ensure you receive a complete account of the latest information from the
Accounting Standards Oversight Council (AcSOC), the Accounting Standards Board (AcSB), the Public Sector Accounting Board (PSAB), the Auditing and Assurance
Standards Oversight Council (AASOC), and the Auditing and Assurance Standards Board (AASB), click on: http://www.frascanada.ca/site-utilities/EmailCheck.aspx.
Discussion Paper - The Role of the Audit Committee — This Discussion Paper was prepared by the Enhancing Audit Quality: Canadian
Perspectives Initiative¶s Role of the Audit Committee Working Group. The paper considers ways in which audit committees can contribute
to audit quality. Comments are requested by March 15, 2013. For more info, click on: http://www.cica.ca/enhancing-audit-quality-canadian-
Exposure Draft - Equity Method: Share of Other Net Asset Changes (Proposed amendments to IAS 28) — The AcSB has issued an
Exposure Draft that corresponds to the IASB¶s Exposure Draft on this topic. Canadian stakeholders are encouraged to submit their
comments, on the form provided, by March 22, 2013. For more info, click on: http://www.frascanada.ca/international-financial-reporting-
International Public Sector Accounting Standards Board (IPSASB) Consultation Paper - International Public Sector Accounting
Standards (IPSASs) and Government Finance Statistics (GFS) Reporting Guidelines — IPSASB has issued a Consultation Paper
identifying existing differences between IPSASs and GFS reporting guidelines and ways to reduce these differences. Canadian
stakeholders are encouraged to provide their views to IPSASB. To learn more, click on: http://www.ifac.org/news-events/2012-10/ipsasb-
publishes-consultation-paper-ipsass-and-government-finance-statistics-rep; comments are requested by March 31, 2013.
Exposure Draft - Amendments to the Introduction — PSAB has issued an Exposure Draft that proposes adding a definition of a
government component and directing certain government partnerships to follow different accounting standards given their structure and
nature of operations. To learn more, click on: http://www.frascanada.ca/standards-for-public-sector-entities/documents-for-comment/
item72006.pdf; stakeholders are encouraged to submit their comments, on the form provided, by May 3, 2013.
IAASB Consultation Paper - A Framework for Audit Quality — The IAASB has issued a Consultation Paper that describes the key
elements of audit quality. Canadian stakeholders are encouraged to provide their comments to the IAASB by May 15, 2013. For more info,
click on: http://www.ifac.org/publications-resources/framework-audit-quality.
Statement of Principles - Restructurings — PSAB has issued a Statement of Principles that addresses the accounting and reporting of
a wide range of restructuring activities among public sector entities. Stakeholders are encouraged to submit their comments, on the form
provided, by May 17, 2013. For more info, click on: http://www.frascanada.ca/standards-for-public-sector-entities/documents-for-comment/
Basis for Conclusions - Section 7150, Auditor’s Consent to the Use of a Report of the Auditor in an Offering Document — This
document summarizes the process followed in developing this standard and the conclusions reached by the AASB regarding significant
comments received in response to its Exposure Draft. To review, click on: http://www.frascanada.ca/assurance-and-related-services-
In addition, a recent issue of the Auditing and Assurance Bulletin highlights key aspects of the new standard,
Section 7150. To read, click on:
NEWSLETTERS OF INTEREST
PSAB Matters - February 2013 — The February issue of this e-newsletter includes a message from the Chair and articles on topics of
interest to public sector stakeholders. To access a copy, click on: http://www.frascanada.ca/public-sector-accounting-board/news-and-
FYI Newsletter - February 2013 — This edition includes a message from the Director and articles on other topics of interest to
stakeholders. To access a copy, click on: http://www.frascanada.ca/accounting-standards-board/news-and-publications/fyi-newsletter/
February 2013, Page 7
Below are news highlights re: the IFRS Foundation (International Financial Reporting Standards) and the International Accounting Standards
Board (IASB).. To ensure you receive a complete account of the latest information, plug into the free, online subscription service of the IFRS
Foundation — eIFRS — by clicking on http://eifrs.ifrs.org/IB/Register.
Volunteer Opportunity - IFRS Interpretations Committee — The Trustees of the IFRS Foundation are inviting applications to fill up to
four vacancies on the IFRS Interpretations Committee. Applications should be sent directly to the IASB by March 8, 2013. For more info,
click on: http://www.ifrs.org/Alerts/PressRelease/Pages/Invitation-for-IFRIC.aspx.
IASB Exposure Draft - Recoverable Amount Disclosure for Non-Financial Assets (Proposed Amendments to IAS 36) — The IASB
has issued an Exposure Draft proposing an amendment to IAS 36 Impairment of Assets. Canadian stakeholders are encouraged to
submit their comments to the IASB by March 19, 2013. For more info, click on: http://www.ifrs.org/Current-Projects/IASB-Projects/
addition, the AcSB has issued an Exposure Draft that corresponds to the IASB¶s Exposure Draft on this topic. Comments are also due by
March 19th; to access more info and/or a form, click on: http://www.frascanada.ca/international-financial-reporting-standards/documents-
Exposure Draft - Classification and Measurement: Limited Amendments to IFRS 9 (Proposed Amendments to IFRS 9 ) —
The IASB has issued an Exposure Draft proposing amendments to IFRS 9 Financial Instruments. The comment deadline is March 28,
2013. For more info, click on: http://www.ifrs.org/Current-Projects/IASB-Projects/Financial-Instruments-A-Replacement-of-IAS-39-Financial
In addition, the AcSB has issued an Exposure Draft that corresponds to the IASB¶s Exposure Draft on this topic. Canadian stakeholders
are encouraged to submit their comments, on the form provided, by March 28, 2013. To learn more and/or to access a form, click on:
Exposure Draft - Clarification of Acceptable Methods of Depreciation and Amortization (Proposed Amendments to IAS 16 and
IAS 38) — The IASB has issued an Exposure Draft proposing amendments to IAS 16 Property, Plant and Equipment, and IAS 38
Intangible Assets. Canadian stakeholders are encouraged to submit their comments to the IAS by April 2, 2013. For more info, click
In addition, the AcSB has issued an Exposure Draft that corresponds to the IASB¶s Exposure Draft on this topic. Canadian stakeholders
are encouraged to submit their comments, on the form provided, by April 2, 2013. To learn more and/or to access a form, click on:
Exposure Draft - Acquisition of an Interest in a Joint Operation (Proposed amendment to IFRS 11) — The IASB has issued an
Exposure Draft proposing an amendment to IFRS 11 Joint Arrangements. Canadian stakeholders are encouraged to submit their
comments to the IASB by April 23, 2013. To learn more, click on: http://www.ifrs.org/Current-Projects/IASB-Projects/Acquisition-Joint-
Operation/Exposure-Draft-December-2012/Pages/Exposure-Draft-and-Comment-letters.aspx. In addition, the AcSB has issued an
Exposure Draft that corresponds to the IASB¶s Exposure Draft on this topic. Comments are also due by April 23rd; to access more info
and/or a form, click on: http://www.frascanada.ca/international-financial-reporting-standards/documents-for-comment/item71801.pdf.
Exposure Draft - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Proposed amendments
to IFRS 10 and IAS 28) — The IASB has issued an Exposure Draft proposing amendments to IFRS 10 Consolidated Financial
Statements and IAS 28 Investments in Associates and Joint Ventures. Canadian stakeholders are encouraged to submit their comments
to the IASB by April 23, 2013. To learn more, click on: http://www.ifrs.org/Current-Projects/IASB-Projects/IFRS-10-IAS-28/Exposure-Draft
-December-2012/Pages/ED-and-Comment-Letters-December-2012.aspx. In addition, the AcSB has issued an Exposure Draft that
corresponds to the IASB¶s Exposure Draft on this topic. Comments are also due by April 23rd; to access more info and/or a form, click on:
Update - Rate-Regulated Activities — The AcSB has extended the existing deferral of the mandatory IFRS changeover date for entities
with qualifying rate-regulated activities by an additional year to January 1, 2015. For more info, click on: http://www.frascanada.ca/
February 2013, Page 8
ADOPTION OF NEW NPO ACCOUNTING STANDARDS
No doubt members are aware that all not-for-profit organizations (NPOs), whether private or government, had to adopt new accounting
standards for NPOs, set out in Part III, which became effective for fiscal years beginning on or after January 1, 2012.
The date of transition to Part III is the beginning of the earliest period for which an entity presents full comparative information under the new
standards. For example, NPOs with a December 31st fiscal year-end will be reporting under the new Part III standards for their December 31,
An opening balance sheet must be prepared and presented at the date of transition, January 1, 2011 in this example, which means a third
column on the balance sheet is presented in the year of the adoption of Part III that is similar to the first-time adoption of ASPE for your private
Reporting Implications — Similar to the adoption of ASPE by private enterprises, the adoption of new accounting standards for NPOs creates
reporting implications for auditors. The auditor may be engaged to report on each period for which financial statements are presented
(comparative figures approach) or on the current period only (corresponding figures approach).
In the first case, using the year ended December 31, 2012 as an example, the auditor of a private NPO engaged to report on the comparative
information has to audit the financial statements for the years ended December 31, 2011 and 2012, and the January 1, 2011 opening
statement of financial position prepared in accordance with Canadian Accounting Standards for Not-for-Profit Organizations. Even though
the auditor performed an audit for 2011 and prior year-ends, they will still have to perform additional procedures (*see below for guidance) in
order to render an opinion on the 2011 comparative figures on the 2012 financial statements. This is because the 2011 audit opinion was on
financial statements prepared in accordance with pre-changeover GAAP (or ³old´ GAAP, now Part V of the Handbook). NOTE: When each
period presented is reported on, the financial statement headings should be revised to reflect more than one year; also the level of detail in the
notes must be comparable with that of the current period.
If, on the other hand, the auditor is engaged to report on the current period only, they will need to add a ³Comparative Information´ paragraph
to the auditor¶s report about the unaudited figures for the prior year.
For more detailed guidance, see illustrative reports 2(f) and 2(g) in Reporting Implications of New Auditing and Accounting Standards, Issue
No. 8, May 2012: http://www.frascanada.ca/canadian-auditing-standards/resources/reference-material/item50999.pdf.
NEW NPO RESOURCES
The accounting framework for not-for-profit organizations (NPOs) in Canada has gone through significant change. Two new CICA resources
are available to help the NPO sector apply the new standards:
Guide to Accounting Standards for Not-for-Profit Organizations in Canada; and
Accounting Standards for Private Sector Not-for-Profit Organizations (Part III), Transition Considerations for Non-Complex Entities.
These publications are available for free download at: http://www.cica.ca/applying-the-standards/financial-reporting/accounting-standards-for-
On that same page, auditors will find a *guide (http://www.cica.ca/focus-on-practice-areas/small-and-medium-practices-(smp)/implementing-the
-accounting-standards/item69430.pdf) to assist in their examination of clients¶ financial statements on transition to the new standards: First-time
reporting on financial statements adopting Canadian Accounting Standards for NPOs or PSAB for Government NPOs.
WITHDRAWAL OF PRE-CAS HANDBOOK
The sun has set on the CICA Handbook - Assurance that existed prior to adoption of the Canadian Auditing Standards (CAS). An electronic
version of this Handbook was maintained for practitioners performing audits with year ends prior to December 14, 2010. Commencing on
December 14, 2012, the CASs apply to all audits of financial statements, regardless of the period end. As a result, the electronic version of the
Assurance Handbook Prior to the Issuance of the CASs was withdrawn on January 1, 2013.
February 2013, Page 9
Capital Dividend Account Information —The CICA and a number of practitioners have been involved in ongoing discussions with CRA
regarding improving access to information to help with calculations of clients¶ Capital Dividend Account (CDA) balances. One of the best ways
to reduce the chance of calculation errors is to request a taxpayer¶s information from CRA for comparison. CRA has indicated that
improvements are underway in a number of areas to make it easier to process these requests, such as:
Confirmation of requests received. As the workload to respond to CDA balance requests is entirely manual, historically CRA has not
provided a confirmation when a request was received. Effective with requests received on or after December 1, 2012, the taxpayer or
representative will be able to obtain a confirmation of the date that a request has been received through ³My Business
Account´ (found at www.cra-arc.gc.ca) using the recently launched enquiries service. The confirmation will not be the actual CDA
balance, which will continue to be provided in writing as long as the workload remains a manual process.
CRA is actively other improvements, including:
Developing a form to request CDA balances;
Uploading capital gains information onto ³My Business Account´; and
Providing information on CRA¶s website for the CDA balance request.
CRA Office Closures and Service Modifications — The CRA closed about half of its in-person Tax Services Offices across Canada in the
autumn of 2012 and will close the balance by the end of this year. CICA communicated to CRA the displeasure of practitioners and the
following is their response to address your concerns:
Filing and Payment Deadlines — The CRA believes that there are adequate options available for taxpayers and their representatives to
meet filing deadlines. For documents, the options available to taxpayers and their representatives are to file them electronically if available
for that particular document (for example, personal tax returns), have the document post-marked at the post office when it is mailed, or
place the document in the drop boxes, which will remain at the same (external) locations as previously. Drop boxes will typically be
emptied of their contents twice daily (more frequently during the personal tax filing season) and stamped by mail operations the same day
they are received. Note: for the first clearance each morning, items are date-stamped with the previous days¶ date; for payments, the CRA
considers you to have made your tax payment on the day that it is: (a) received by the CRA or (b) processed at any financial institution
belonging to the Canadian Payments Association (payments made at an ATM may not be processed that same day).
If you mail your payment, the CRA considers you to have made the payment on the day it receives the payment, not on the day you mail it.
If your payment due date falls on a Saturday, a Sunday or a public holiday, the payment will be considered received on time if it is received
by the CRA on the first business day after the due date.
In-Person and Automated Services — The CRA has reduced in-person access given reduced demand for CRA in-person assistance, but
has, however, improved referral service through calls to the toll free 1-800 numbers. CRA has established centralized expertise that will be
referred by the call centers when an issue cannot be resolved over the phone. Once referred to the central team, a meeting may be
arranged if the matter cannot be resolved over the phone. So far, CRA has found this service to work very effectively.
The CRA is adding an automated service which will allow individual taxpayers to request a remittance voucher through interactive voice
recognition (phone lines), ³My Account´ and ³Quick Access´. Once a remittance voucher is ordered, it will be mailed and delivered through
Canada Post to the address on file. Note: Service Canada Centers have phones and Internet access for those people who do not
otherwise have access to the Internet.
Supporting Documentation — The CRA is currently exploring options that will alleviate the burden associated with the submission of
supporting documentation. CRA recently launched a service that allows taxpayers and their authorized representatives to submit
supporting documentation electronically in response to various post-assessing review activities associated with the T2 return. This service
will be extended to other Agency workloads in the near future. They are also looking at ways of extending this functionality in a manner
that would allow taxpayers/reps to submit such supporting documentation at the time of filing. The CRA is also exploring ways to accept
forms electronically; however, this is the very preliminary stages of analysis.
February 2013, Page 10
2013 Financial Reporting in Canada under IFRSs — Aimed at helping Canadian preparers of Publicly Accountable Enterprise
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addresses the many questions financial statements preparers may have about IFRS application. For more info, click on:
Canadian Professional Engagement Manual (C
PEM), 2012 — A trusted source of guidance for over 20 years, the Canadian
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Model Financial Statements — New versions of all three sets of Model Financial Statements will be available soon. Each includes a
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Catalogue.aspx?languageFilter=eng&-1&FullTextSearch=Model%20Financial%20Statements for copies of the Private Enterprises version,
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2013 CICA Handbook — Check out the CA Store at http://www.castore.ca/Catalogue/Catalogue.aspx?languageFilter=eng&-
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CICA Tax Practice Manual, Second Edition — The must-have guide to building and maintaining a successful tax practice
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Ernst & Young’s Guide to Preparing 2012 Personal Tax Returns — The guide busy tax professionals depend on for quick
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Financial Executive Tax Collection (FETC) — Are you a financial executive who has oversight responsibility for
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For more info, click on: http://www.castore.ca/product/financial-executive-tax-collection/1546?urlcode=fetc-pica.
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