ILLUSTRATIVE REPORTS
INTRODUCTION TO ILLUSTRATIVE REPORTS
1. These Illustrative Reports reflect the principles discussed in Q&A 1(b) of
this Guide.
2. The transition provisions in certain parts of the CPA Canada Handbook
– Accounting require that the financial statements in the first year of
adoption of a new financial reporting framework contain an opening
statement of financial position. For example, for an entity with a calendar
year end, the entity’s first financial statements would include the entity’s
statements of financial position as at:
(a) December 31, 2011;
(b) December 31, 2010; and
(c) January 1, 2010 (opening statement of financial position).
The effective date for adoption of International Financial Reporting
Standards (IFRSs) and Canadian accounting standards for private
enterprises is for interim and annual financial statements relating to fiscal
years beginning on or after January 1, 2011. Earlier application is permitted.
Illustrative Reports indicate whether the financial statements are prepared
in accordance with IFRSs or Canadian accounting standards for private
enterprises on their effective date or whether these accounting standards
have been early adopted. Illustrative Reports, based on the calendar
periods referred to above, would also be appropriate in circumstances
where an entity transitions to a new financial reporting framework at later
dates, with appropriate changes to the dates in the reports.
3. Illustrative Reports may differ depending on whether the auditor’s report
extends to the comparative information in the financial statements and
whether the auditor’s report is prepared in accordance with the reporting
requirements in effect prior to or after the issuance of the CASs. Q&As 1(d)
and 2(a) in this Guide discusses comparative information and the audit
reporting differences under the CASs depending on whether the auditor’s
opinion on the financial statements refers to the current period only or to
each period for which financial statements are presented.
4. Illustrative Reports have been grouped together into similar topics.
5. Underlining has been used, where appropriate, to help readers identify
differences in the wording of the Illustrative Reports.
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