Cattle grazing in a farm field

Get ready: Changes for agriculture producers reporting with ASPE

Get ready: Changes for agriculture producers reporting with ASPE

Synopsis
2 Minute Read

This is the first year that Section 3041 goes into effect for Canada’s farmers with financial statements being prepared using Accounting Standards for Private Enterprise (ASPE). We’re ready for it — and we’ll help you get ready too.

Business Advisor, Agricultural Services

Section 3041 contains new guidance from the Canadian Accounting Standards Board that will affect agricultural producers whose financial statements are prepared using Accounting Standards for Private Enterprise (ASPE). This is a significant change for livestock operators, who often need review engagements to provide assurance to the bank for financing. We’re hearing that many accountants expect the implementation of section 3041 will be complicated and expensive for producers, and in some situations, that will be the case. But we’re trying to make it as painless as possible for our clients by ensuring we understand the section, it’s possible implications, and the various solutions.

Because section 3041 is new, it will be up to individual accountants to apply their professional judgement on their understanding of the facts of their clients’ unique situations and the guidance provided by CPA Canada. The requirements are very farm specific and therefore the best solutions will be from accountants and producers working together.

We start by asking questions about how the client manages their specific farm operation. We want to know how an operation manages their livestock, keep their records, track their livestock and what their goals are. This allows us to make the accounting fit the operation rather than the client having to change the operation to fit the accounting.

If we find that a client must collect new information in order to meet the new requirement, we’ll look at how they can get additional value out of that information. Can they use it to meet other compliance requirements more efficiently? Is it possible to use the data for benchmarking? Getting more value out of what’s required for compliance can take some of the sting out of it.

Recognizing the complexity of section 3041, MNP’s national Agricultural Services team has spent the last two years dedicated to making the transition as smooth as possible for our clients so that there is the least impact on their operations. Our accountants are already working with our clients to make small, easy-to-manage changes in how they collect their data so that it will be easier for them to answer the questions they’ll be asked next year-end.

Contact us

Contact Kimberly Shipley, CPA, CA, Business Advisor, Agricultural Services, at 403.356.1278 or [email protected].

Insights

  • Performance

    April 16, 2024

    Software in British Columbia: Taxation in perpetual motion

    What software is taxable in British Columbia for PST purposes? Discover the changes introduced in the province’s 2024 budget.

  • Performance

    April 16, 2024

    2024 Federal Budget Highlights

    View MNP’s full tax analysis of the 2024 federal budget.

  • Progress

    Your farm succession plan isn’t complete until it exists in writing

    The average age of farmers in Canada is increasing. Having a written succession plan becomes more important as you age, to help secure your legacy, protect your farm operation, and reduce conflict.