Private Enterprises

New accounting standards for private enterprises now available

The Accounting Standards Board (AcSB) approved the final accounting standards for private enterprises in Canada. The new standards have been issued and are available for 2009 reporting for entities that choose to adopt them early.

The private enterprise standards give Canadian businesses the ability to choose to adopt new “made in Canada” standards or International Financial Reporting Standards (IFRSs). Private enterprises must decide which of the sets of standards to adopt for years beginning on or after January 1, 2011.

Private enterprise standards were developed from a lengthy consultation process that ensured that private enterprises of all sizes across Canada were able to provide input into the standard-setting process. Consultation was the key to producing new financial reporting standards that respond to the needs of both private enterprises and the users of their financial statements.

Notable changes include simplification of recognition, measurement and presentation in areas that were identified as being overly complex, particularly accounting for financial instruments. The simplified accounting requires less use of fair values. The new standards also significantly reduce the burden of disclosure requirements.    

Further Information on Private Enterprise Standards

Accounting Standards Board website
Access the electronic Handbook (Knotia) here.
Canadian GAAP at a crossroads (Deloitte)
Decision Summary — September 22-23 2009
Exposure Draft — GAAP for Private Enterprises
Background Information and Basis for Conclusions — GAAP for Private Enterprises
Webinar —  GAAP for Private Enterprises
Audio Presentation — GAAP for Private Enterprises
FAQ — Private Enterprise GAAP