2015 ASPE Accounting Standards Changes
The Accounting Standards Board (AcSB) made changes for Part II of the CPA Handbook – Accounting Standards for Private Enterprises (ASPE) as a result of the 2014 ASPE Annual Improvements Process.
Amendments were made to ASPE and the amendments to the standards will be effective for years beginning on or after January 1, 2015 for the following:
Section 3856, Financial Instruments
Previously, Section 3856 was unclear on the accounting for a hedging item when a reporting period ends between the date the hedged transaction occurs and the date the hedged item matures. An amendment to the section has been made to add that if a reporting period ends before the hedging item matures, the hedging item is re-measured using the spot price or rate in effect at the reporting period balance sheet date with any gain or loss included in net income.
- Disclosure of Impairments
An amendment to the section was made to clarify the disclosure requirements when current trade accounts receivables are impaired. Section 3856 previously required the carrying amount of impaired financial assets, by type of asset, and the amount of any related allowance for the impairment to be disclosed. However, for certain financial assets such as current trade receivables, impairment is often assessed on a group basis which makes it difficult to determine. The amendment to the section clarifies that disclosure of the carrying amount of impaired financial assets is not required for current trade receivables. For current trade receivables, an entity shall disclose the amount of any allowance for impairment.