There is a difference between Canadian GAAP and IFRS with regards to Related Party Transactions. Canadian GAAP has specific measurement requirements under CICA Handbook section 3840, whereas IFRS does not. IAS 24 provides guidance on disclosure only.
The measurement of related party transactions in Canadian GAAP is either at the “carrying” amount, or the “exchange amount”, depending on the nature of the transaction. The measurement might differ from what will be required under IFRS, since the accounting under IFRS may require measurement of any resulting assets or liabilities at fair value, either initially or even subsequently. This will more likely be an issue when accounting under Canadian GAAP with a carrying amount rather than an exchange amount.
I hope this helps.
This is one of a series of blogs that is meant to convey information relating to Canada’s transition from Canadian GAAP to IFRS.
For further information, please refer to the ongoing series of IFRS blogs on the Edelkoort Smethurst Schein CPA’s LLP web-site and please remember to contact your accounting professional for further guidance.
Edelkoort | Smethurst | Schein CPAs LLP is located in Burlington Ontario servicing the Golden Horseshoe and Greater Toronto Area and beyond. The firm is fully licensed with CPA Ontario to provide assurance, tax and accounting services as well as registered as tax preparers with the Canada Revenue Agency (CRA) & Internal Revenue Service (IRS). The firm is also registered as an IRS Certified Acceptance Agent.
All blog posts published on this site are for informational purposes only and do not constitute professional advice. Readers should contact a professional to discuss their individual situation. Neither the author or the accounting firm shall accept any liability for any reliance placed on the information posted.