| This summary of recently issued Accounting Standards Board (AcSB) pronouncements
has been prepared for information purposes only. Reference should be made to official Handbook material for
the text of final AcSB pronouncements. |
Status: Project discontinued.
The AcSB decided to discontinue the Subsequent Events Project as amendments to Section
3820 are not warranted at this time.
Background
Activities to Date
Next Steps
Contact Information
Background
Reasons for the project
This project is part of the AcSB’s Accounting
Standards Improvements Project to amend and improve certain parts of the CICA Handbook – Accounting that
are incomplete or are inconsistent with US Financial Accounting Standards Board and International Accounting
Standards Board standards and practices.
Section 3820 presently differs from the improved International Financial Reporting Standard IAS 10,
Events After the Balance Sheet Date, and US
accounting practice based on AU Section 560, Subsequent Events. Accordingly, the AcSB proposes to replace Section 3820 with an improved Section that
will be harmonized with the improved IAS 10 and with US practice.
Key Issues
To improve the subsequent event reporting process, the project will consider whether to:
- extend the reporting period for subsequent events to a later date;
- disclose the subsequent event date; and
- reconsider the subsequent event date when financial statements are reissued.
Activities to Date
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In March 2005, the AcSB issued for comment a Re-exposure Draft of the proposed revised
Section 3820, Subsequent Events. Based on the
comments received in response to this Exposure Draft, the Re-exposure Draft proposes to do the
following:
- Define the subsequent event period for publicly accountable enterprises as being from the date of the
balance sheet to the date the financial statements are authorized for issue.
- Define the subsequent event period for all other entities as being from the date of the balance sheet to
the date of completion of the financial statements. In addition, from the date of completion to the date the
financial statements are authorized for issue, management would be required to take into account subsequent
events of which they are aware.
- Require the disclosure of the dates for which subsequent events are reflected in the financial
statements.
- When financial statements are revised and reissued, require an entity to consider the appropriateness of
the date(s) for which subsequent events are reflected in the financial statements.
These amendments were intended to address the concerns raised by private entities and
for publicly accountable enterprises, and to harmonize the Section more closely with US requirements and
International Financial Reporting Standard IAS 10, Events After the Balance
Sheet Date.
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In December 2005, the AcSB decided to discontinue amendments to Section 3820, Subsequent Events, as changes to Section 3820 were not warranted
at this time, particularly taking into consideration developments in the civil liability regime and other
reporting requirements affecting public companies, and given constituents’ views.
Next Steps
The AcSB has discontinued the Subsequent Event Project; accordingly, no further work
will be conducted.
Contact Information
Questions or comments on this project should be directed to:
Rebecca Villmann, CA
Principal, Accounting Standards
Telephone: +1 (416) 204-3464
Fax: +1 (416) 204-3412
Canadian Accounting Standards Board
277 Wellington Street West
Toronto ON M5V 3H2 Canada
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