In December 2018, the Canadian Accounting Standards Board (AcSB) amended Section 3856 Financial Instruments to add requirements regarding financial assets originated or acquired and financial liabilities issued or assumed in a related party transaction.
The new guidance is expected to have an impact on entities that prepare financial statements in accordance with Accounting Standards for Private Enterprises (ASPE) or Accounting Standards for Not-for-Profit Organizations (ASNPO) as they will need to revise their existing accounting policies for measuring financial instruments in a related party transaction.
The amendments are effective for fiscal periods beginning on or after January 1, 2021.
This publication provides a summary of the main amendments. However, it does not deal with all aspects of the accounting for financial instruments in related party transactions. Readers are encouraged to refer to Section 3856 before making any decisions.
Financial Instruments in Related Party Transactions (ASPE and ASNPO)
This publication provides a summary of the main amendments. However, it does not deal with all aspects of the accounting for financial instruments in related party transactions.
