If an enterprise concludes that it has no significant accounting policy changes on adoption of accounting standards for private enterprises, what sort of disclosure should it make on adoption?
It is entirely possible that an enterprise would not have significant accounting policy changes on adoption of accounting standards for private enterprises — the standards were created from existing Canadian GAAP with many simplifications being optional. Also, many of the simplifications address transactions that may not be applicable to all private enterprises (for example, defined benefit pension plans). General Standards of Financial Statement Presentation, paragraph 1400.16, requires a statement that the financial statements comply with accounting standards for private enterprises. First-time Adoption, paragraph 1500.35, requires several disclosures on adoption of accounting standards for private enterprises, including the amount of each change to retained earnings at the date of transition and a reconciliation of net income for the year prior to adoption. If there is no change to net income or to retained earnings as a result of adopting accounting standards for private enterprise
Related Questions
- What are the implications of adopting accounting standards for private enterprises for an enterprise that previously followed AcG-18, Investment Companies?
- What is the effective date of accounting standards for private enterprises (ASPE)? When is the earliest that an enterprise can adopt these standards?
- Who can use accounting standards for private enterprises?
