Improvement in revenue recognition requirements for Crown corporations
Because of the development of a brand new standard, the us government reviewed its accounting policy, which required a reassessment of the way the consolidated Crown corporations recognize income. This new standard founded comprehensive guidance to ascertain if deals must be taken into account as a representative or a principal.
This had a substantial effect on the Canadian Commercial Corporation for the commercial contracting activities. Centered on a report on the brand new standard, it absolutely was determined that, considering that the Canadian Commercial Corporation’s contracting tasks include organizing for products or solutions become utilized in international purchasers, it will not get a grip on the root items or solutions supplied by Canadian exporters. Therefore, the strategy for which these tasks are reported ended up being changed through the Corporation acting as a principal to a real estate agent because it leads to an even more presentation that is appropriate of deals when you look at the condensed consolidated economic statements. 続きを読む 3. Accounting Change and Restatement