We understand the specialized markets in which you operate and provide tailored solutions to meet your unique business needs.
Our comprehensive suite of business services combines industry expertise, market knowledge and professional insights.
MNP is a leading national accounting, tax and business consulting firm in Canada.
Suite 2000, 330 5th Ave. S.W.
Submit an RFP
MNP careers are Different by Design. As an entrepreneurial firm, we truly believe there are no limits to where your career can go.
When applying Accounting Standards for Private Enterprises (ASPE), EIC abstracts are no longer considered to be authoritative guidance. ASPE has adopted a principles-based approach and, in some instances, will require the exercise of professional judgment. Preparers of financial statements will need to refer to the basic principles on which ASPE standards rely and apply judgment in order to determine accounting policies which achieve the goal of fair presentation to financial statement users.
Can former EICs still be referred to for guidance when applying the judgments required in ASPE?
Some EIC guidance (mainly regarding leases, related party transactions, revenue, and current assets and current liabilities) was incorporated directly into the applicable ASPE standard. Therefore, the best place to start when assessing a particular balance or transaction will be the ASPE standards themselves.
The application of professional judgment will require combining an analysis of the core financial statement concepts contained in ASPE1000 Financial Statement Concepts and ASPE1400 General Standards of Financial Statement Presentation with an assessment of the objectives of the financial statements, the qualitative characteristics and the financial statement users’ needs.
Where further guidance is required in making judgments, in certain situations, the former EICs can be reviewed as a non-authoritative source of guidance for generally accepted accounting principles (GAAP). However, the EICs should only be considered when the underlying principles in the EIC are consistent with the principles contained in the related ASPE standard. For example, where the accounting standard within Pre-Changeover GAAP on which the EIC was focused contains different concepts and principles than the relevant ASPE standard, it will not be appropriate to review the EIC for guidance.
ASPE 1100 Generally Accepted Accounting Principles identifies other sources of guidance that may be consulted when selecting accounting policies and disclosures, including:
Caution must be taken when reviewing guidance from non-authoritative sources.
For more information on the financial reporting library, contact a local MNP Assurance Professional, or Jody MacKenzie, Director, Assurance Professional Standards.
This communication contains a general overview of the topic and is current as of May 28, 2014. The application of the principles addressed will depend upon the particular facts and circumstances of each individual case. Accordingly, this publication is not a substitute for professional advice and we recommend that any decisions you take about the application or not of any of the information presented be made in consultation with a qualified professional who can address any variance that may be required to reflect your circumstances. Please contact your local MNP representative for customized assistance with the application of this material. MNP LLP accepts no responsibility or liability for any loss related to any person's use of or reliance upon this material. © MNP LLP 2014. All rights reserved.
Related Topics:APSG ASPE
Suite 2000, 330 5th Ave. S.W.
Find an office near me