Update to Accounting Standards and Resources

A recent update to the assurance and accounting standards and resources is now available on CPA Ontario’s knowledge hub and resources web page:

• Revised IFRS Accounting Standards – Contracts Referencing Nature-dependent Electricity
  
  The International Accounting Standards Board issued amendments to IFRS 9, Financial Instruments and IFRS 7, Financial Instruments: Disclosures in December 2024 to help companies report the financial effects of nature-dependent contracts, which are often structured as power purchase agreements. The amendments:

• • clarify the application of the ‘own-use’ requirements;
  • permit hedge accounting if these contracts are used as hedging instruments; and
  • add new disclosure requirements to enable investors to understand the effects of these contracts.

The amendments are effective for annual reporting periods beginning on or after January 1, 2026, with early application permitted.

• Revised Public Sector Guideline – Lessee Accounting for Operating Leases of Tangible Capital Assets

The Public Sector Accounting Board (PSAB) issued amendments to PSG 2, Leased Tangible Capital Assets in February 2025 to delete an outdated cross-reference to Section 3065, Leases in former Part V of the CPA Canada Handbook – Accounting, pre-changeover accounting standards. The outdated reference is replaced with paragraphs PSG-2.4A-4C, which sets out minimal requirements for lessee accounting for operating leases of tangible capital assets.

The new text in PSG-2 is taken from Section 3065 in former Part V of the Handbook. Amendments were also made to align existing appendices in the guideline to be consistent with PSAB’s new approach to the PSA Handbook.

These changes do not comprise a change in practice and were effective when issued.

• Revised Public Sector Accounting Handbook Appendices – Elevation of GAAP Designation of Application Guidance

Amendments were issued by PSAB in February 2025 that elevate the level of generally accepted accounting principles (GAAP) designated for four application guidance appendices to level (i):

• • Appendix A to Section PS 3400, Revenue;
  • Appendix B to Section PS 3410, Government Transfers;
  • Appendix A to Section PS 3450, Financial Instruments; and
  • Appendix A to Section PS 4270, Disclosure of Allocated Expenses by Not-for-Profit Organizations.

The amendments are effective for fiscal years beginning on or after April 1, 2026, with early application permitted.

• The Accounting Standards Board issued the third part of its series: “What You Need to Know about Effects of Climate-related Risks and Opportunities on ASPE Financial Statements”. These awareness documents have been developed to help organizations in navigating climate-related matters using ASPE standards. For not-for-profit organizations, the awareness documents can be adapted where appropriate:
  • Financial instruments and Fair value measurement
  • Consolidation and control