This Section establishes standards for subsidiaries in the general purpose financial statements. It provides guidance on when one enterprise "controls" another enterprise such that the other enterprise qualifies as a "subsidiary". The amendments are effective for fiscal years beginning on or after January 1, Earlier application continues to be permitted.
Section - Consolidated financial statements. This Section establishes standards for the preparation of consolidated financial statements. This Section specifically discusses consolidation accounting following a business combination that involves a purchase of an equity interest by one company in another. Section - Non-controlling interests. This Section establishes standards for accounting for a non-controlling interest in a subsidiary in consolidated financial statements subsequent to a business combination.
Section - Comprehensive revaluation of assets and liabilities. This Section establishes recognition, measurement and disclosure standards dealing with the comprehensive revaluation of assets and liabilities by profit-oriented enterprises in order to establish a new cost basis.
The Section permits comprehensive revaluation of an enterprise's assets and liabilities in two circumstances: a where all or virtually all of the equity interests of the enterprise have been acquired in one or more transactions between non-related parties by an acquirer who controls the enterprise after the transaction s or b where the enterprise has been subject to a financial reorganization and the same party does not control the enterprise both before and after the reorganization and in either situation new costs are reasonably determinable.
Section - Foreign currency translation. This Section establishes standards for the translation of transactions of a reporting enterprise that are denominated in a foreign currency and financial statements of a foreign operation for incorporation in the financial statements of a reporting enterprise. Section - Unincorporated businesses. This Section establishes disclosure standards for unincorporated businesses. Only these special problems are dealt with in this Section. The requirements of this Section are only applicable to unincorporated businesses.
Different types of investments exist and several accounting policy choices are available. Our updated briefing helps simplify the accounting for investments. Learn about the new compilation standard CSRS , Compilation Engagements and the implementation guidance available. Listen to practitioners share practical tips and answer questions on how to implement the new standard. Ready to become a future-focused governance pro? The effect of Section is to change the way entities recognize and measure financial instruments.
The mandatory effective date for Section was deferred for many entities, not including not-for-profits for whom the changes were effective October 1, , and the new standard now applies to annual financial statements of all entities relating to fiscal years beginning on or after October 1, This bulletin also provides a brief summary of these new rules.
As noted above, financial statements are often used to comply with disclosure requirements - whether statutory requirements or otherwise - and the CICA Handbook was developed, in part, to assist with the various disclosure requirements corporations have. Paragraph The proper maintenance and presentation of financial and accounting information satisfies this objective. The Series have been developed to address matters that are unique to NPOs or for situations where it is appropriate to provide different requirements for NPOs and profit-oriented organizations.
Following a review of, and solicitation of, the views of interested parties regarding the provisions of the CICA Handbook applicable to NPOs by the Ad Com, the AcSB posted an Exposure Draft the "Draft" containing the proposals for amendments to the existing standards and provisions of the Series.
Some of the proposed changes are relatively minor in nature and result from amendments made to other sections of the CICA Handbook upon which parts of the Series are based.
The proposed changes to the Series include the following:. Topic 2 - Reporting of Net Assets Section , Financial Statement Presentation by Not-for-Profit Organizations, will be amended to eliminate the requirement to treat net assets invested in capital assets as a separate category of net assets and, instead, to treat them as a category of internally restricted assets.
If presented, it may be either in a note to the financial statements or directly on the face of the statement of financial position. Additional guidance is also provided with respect to internal restrictions of net assets.
Topic 3 - Reporting gross amounts of revenues and expenses Amendments will also be made to Section clarifying that revenues and expenses must be recognized on a gross basis when an NPO is acting as a principal. Topic 4 - Statement of Cash Flows The amendments propose to make Section - Cash Flow Statements applicable to NPOs such that they will no longer be permitted to group cash flows from financing and investing activities. Topic 6 - Capital Assets Section will be amended to clarify that the size test for relief from the Section is intended to allow NPOs to expense, rather than capitalize and amortize, their capital assets.
It is not intended to allow NPOs to choose to capitalize but not amortize their capital assets, nor is it intended to allow different methods of accounting for various types of capital assets. Topic 7 - Reporting Controlled and Related Entities Section will be amended to clarify the material related to the identification of control, particularly as it relates to other NPOs; require controlled entities to be consolidated; amend the economic interest definition; enhance the disclosure requirements for economic interest relationships; and eliminate the exemption from consolidation of a large number of individually immaterial organizations.
Topic 9 - Proposed New Section - Disclosure of Allocated Expenses by Not-for-Profit Organizations The new Section will require NPOs to disclose their policy on the allocation of fundraising and general support expenses, the nature of expenses being allocated, the basis on which such allocations have been made, and the amounts that have been allocated in the notes to the financial statements details of which are discussed below.
While we recommend that the proposed amendments to the Series be thoroughly read and discussed, of significant note is the proposed addition of a new section to the CICA Handbook relating to the disclosure of allocated fundraising and general support costs by NPOs.
If implemented, this section would require NPOs that classify their expenses by function and allocate a portion of their fundraising and general support costs to another function, to disclose the following:. The amendments do not require NPOs to classify expenses by function nor to allocate fundraising and administrative costs to other functions. Proposed section indicates that organizations often allocate individual expenses among the functions they relate to when the organization reports expenses by function.
If an expense relates to a specific program, there may be general expenses incurred as well so the organization may wish to allocate the expenses accordingly when there is a clear relationship between the expense and the function.
The proposed Section also contemplates the allocation of fundraising expenses between different functions. In this situation, there must be a "reasonable basis for making such an allocation, applied on a consistent basis. With specific regard to fundraising expenses and the potential to allocate some of these expenses to educational objectives, the Application Guidance sets out detailed criteria which the expense must meet in order to be considered educational; otherwise, the expenses will be considered wholly attributable to fundraising.
In addition, expenses related to fundraising activities targeted at prior donors or individuals and corporations selected based on their likelihood to donate are presumed to be wholly attributable to fundraising. Further, the proposed Section contemplates the allocation of general support expenses. It states that general support expenses may be considered a function in their own right but alternatively, may be allocated among the relevant functions they support.
Again, the allocation must be reasonable and must be applied on a consistent basis. Section This section provides that. And finally, section Escrow shares. As at August 31, , the Company has no shares held in escrow.
Balance, June 30, Stock compensation on vesting of stock options. Surplus from sale of treasury shares. Fair value of warrants from debenture and warrant financing Note 5. Allocated to share capital on exercise of options. Balance, August 31, Amounts due to related parties are non-interest bearing and have no fixed terms of repayment.
The fair value of the amounts due to related parties is not determinable as they have no repayment terms. These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties. In all three transactions, the underlying CIBT shares were placed in custody as security for the amount owing.
As at June 30, , the full amount of the promissory note, including accrued interest, was paid by the Director. As security for the advances, the Company shares owned by the CEO and private companies controlled by the CEO are being held by the Company as collateral until the funds are repaid. In accordance with current accounting standards, the Company initially measures all of its financial assets and financial liabilities at fair value and classifies them into categories with ongoing measurement as follows:.
Held-to-maturity investments measured at amortized cost using effective interest method;. Available-for-sale assets measured at fair value;. Assets and liabilities held-for-trading measured at fair value;.
Loans and receivables measured at amortized cost using effective interest method; and. Other financial liabilities measured at amortized cost using effective interest method.
Loans and Receivables. Other Financial Liabilities. Financial Assets. Due from related parties. Financial Liabilities. Accounts payable and accrued liabilities. Long-term debt. The fair value of financial instruments represents the amounts that would have been received from or paid to counterparties to settle these instruments. Exchange rate risk. The Company operates in Canada and China and incurs substantial operating costs which are payable in U. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk.
Credit risk. The financial instruments that potentially subject the Company to significant concentration of credit risk consist principally of cash and cash equivalents and accounts receivable.
Cash is on deposit at major financial institutions. Management is of the opinion that credit risk with respect to accounts receivable is limited due to the ongoing evaluations of its debts and the monitoring of their financial condition to ensure collections and to minimize losses. Interest rate risk. The Company is exposed to interest rate risk on its cash and cash equivalents which earn interest at market rates.
The Company currently has no variable rate debt subject to interest rate risk. The Company does not currently use derivative instruments to reduce its exposure to interest rate risk. On August 16, , the lease was renewed for a 50 month term from September 1, to October 31, On February 1, , the lease agreement was assigned to and assumed by the Company. The Company has estimated future minimum lease payments under this operating lease as follows:.
CIBT has estimated future minimum lease payments under this operating lease as follows:. The Company manages all risk issues directly. The Company is engaged primarily in service related industries and manages related industry risk issues directly. The Company is not exposed to significant interest rate risk. The Company conducts business in Canada, the United States, China and Hong Kong giving rise to significant exposure to market risks from changes in foreign currency rates.
The financial risk is the risk to the Company's operations that arises from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments or other measures to reduce its exposure to foreign currency risk. General and administrative expenses are comprised of the following:.
Bank charges and interest. Consulting and management fees. Investor relations. Office and general. Professional fees. Salaries and benefits. Travel and promotion. Net changes in non-cash working capital items are comprised of the following:. Prepaid expenses. Income taxes payable. Deferred revenues and fees. Other assets. Industry and Geographic Segments.
Two months ended August 31, Corporate and other Canada. Design and advertising. Consulting income. Gain loss on marketable securities. Net revenues. General and administrative.
Interest on long-term debt. Finance fees — amortization. Gain on subsidiary share issuances and purchases. Non-controlling interests. Other income. Income tax provision. Net income loss. Total assets. Capital expenditures. Consolidated Balance Sheets.
June 30, Two Months Ended August 31 ,.
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