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ASPE alert: Accounting for related party financial instruments and significant risk disclosures

Learn about the new accounting standards for private enterprises (ASPE) issued in December 2018 in Part II of the CPA Canada Handbook – Accounting.

This ASPE alert highlights key changes resulting from the amendments to Section 3856, Financial Instruments regarding accounting for related party financial instruments and significant risk disclosures.

Topics include:

  • the revised scope of Section 3856
  • initial measurement of financial instruments in a related party transaction
  • subsequent measurement of related party financial instruments
  • related party financial instruments containing both a liability and an equity component
  • significant risk disclosures
  • transitional considerations