Important changes to the financial statements of CMHC-under agreement housing organizations
The Portfolio Management and Loans Administration Centre of the Canada Mortgage and Housing Corporation (CMHC) - Quebec Region has decided to change the accounting framework used by organizations under agreement in order to comply with the Canadian Accounting Standards for Not-for-Profit Organizations (ASNPO).
The presentation of financial statements will be standardized for all CMHC-under agreement organizations. The change will be effective starting in the fiscal year ending December 31, 2014. In collaboration with their auditors, organizations will have to choose a method for measuring the cost of their capital assets on the changeover date. More specifically, they will have to choose between the reconstituted cost model and fair value measurement to value their capital assets.
The new model financial statements will be available in the next few months. Look for more details in upcoming issues of the CPA Newsletter.