November 2022 – (ASPE and ASNPO)
In December 2019, the Canadian Accounting Standards Board (AcSB) amended Section 3400 Revenue to provide additional application guidance on several topics.
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).
The amendments relate to the following areas of revenue recognition:
- identifying and accounting for multiple-element arrangements;
- applying the percentage of completion method;
- reporting revenue gross as a principal or net as an agent;
- identifying and accounting for bill and hold arrangements; and
- accounting for upfront non-refundable fees or payments.
The amendments are effective for fiscal periods beginning on or after January 1, 2022.
The new guidance is expected to have an impact on entities that prepare financial statements in accordance with ASPE or ASNPO.