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The Accounting Standards Board (AcSB) established a Differential Reporting Advisory Committee (DRAC) in 2000 as a standing committee to provide input to the standard-setting process concerning financial reporting by non-publicly accountable enterprises. The DRAC provides a focus for communication between the AcSB and:
- The users of financial information about non-publicly accountable enterprises,
- The preparers of that information, and
- Their independent public accountants (acting as auditors, reviewers or advisors).
Purpose |
The objective of accounting standards is to meet the needs of users of financial statements by providing the information they require to make informed decisions. However, non-publicly accountable entities and the users of their financial statements are a large and diverse group, and frequently do not participate as actively in the standard-setting process as do the stakeholders of publicly accountable enterprises. .
Process
The DRAC advises the AcSB and its staff on actual or potential problems that existing or proposed accounting standards cause for non-publicly accountable enterprises and, when warranted, recommend differential reporting options or other action by the AcSB. In addition, the DRAC provides input from the perspective of non-publicly accountable enterprises to the AcSB on discussion papers and statements of principle, and to the Emerging Issues Committee on draft abstracts. This feedback ensures that the views of non-publicly accountable enterprises and the users of their financial statements are being taken into consideration during the standard-setting process and assists the AcSB in developing high-quality accounting standards of general application that provide useful and reliable information related to these organizations at reasonable cost. The AcSB evaluates all proposals in terms of their expected costs and benefits.
Membership
DRAC membership comprises a Chair and no fewer than eight members representing a cross-section of auditors, preparers and users of financial statements of non-publicly accountable enterprises. Members are selected for:
- their ability to maintain an awareness of current issues of significance to non-publicly accountable enterprises regarding accounting standards,
- their technical expertise in advising the Accounting Standards Board,
- their ability to represent the views of specific groups amongst the users, preparers and auditors of financial information about non-publicly accountable enterprises, and
- their willingness to assist in improving communications between the Board and those in the business community affected by its activities.
Current membership of DRAC can be viewed here. |
How to Provide Input
The DRAC is anxious to hear from, and discuss with, non-publicly accountable entity preparers, users, and auditors with respect to any concerns with, or observations on, current accounting standards, items on the AcSB’s technical agenda, and potential agenda items for the AcSB to consider.
To obtain more information about the DRAC, communicate issues to DRAC, or to be considered for membership of the DRAC, contact:
Greg Edwards, CA
Principal, Accounting Standards
Accounting Standards Board
277 Wellington Street West
Toronto ON M5V 3H2
Canada
E-mail: greg.edwards@cica.ca
Phone: +1 (416) 204-3462 or
Fax: +1 (416) 204-3412.
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