As always, feel free to reach out to us with any questions—about your financial statements or your business. We know that your business continues to evolve. We are here to support you, from your everyday needs to your most critical decisions.
Published: October 14, 2021
Updated: October 14, 2021
The financial statements you receive and the way we compile them are changing this year. These changes apply to all public accountants, and were issued under the new Canadian Standard for Related Services 4200.
You will also notice a name change. For years, a one-page report in the compiled financial statements has been known as a ‘Notice to Reader,’ or NTR. That report name is changing to ‘Compilation Engagement Report.’
The transition from Notice to Reader to Compilation Engagement Report is a good opportunity to make sure you’re receiving the right services for your business needs.
Compilation engagements are one of many different services BDO provides to empower your business at every stage. Whether you’re growing, looking to exit, or simply adapting to the latest changes, we can provide advice and support—from bookkeeping and payroll to tax planning to cybersecurity to putting a value on your business.
The changes must be made for financial statement periods ending on or after December 14, 2021.
The changes are designed to provide more clarity to you, your bank, and other lenders that use your financial statements.
We will keep you updated on these changes, and provide resources you can share with your lenders.
Expect these changes when meeting with your BDO advisor:
Public accountants have been asked to check in with their clients on areas of the business related to the financial statements. As your advisors, we approach these discussions as part of our ongoing communication with you. We’ll explain the changes and how they impact your business.
We’ll focus on these areas:
How to use your financial statements
Specifically, whether you share your statements with a third party such a bank or other lender.
Relevant facts about your business
These include your operations, accounting system, and accounting records.
Basis of Accounting
Banks and other lenders who rely on financial statements need information on the accounting method used to prepare the statements. This is called the basis of accounting. We’ll help you decide which basis of accounting to use and disclose on your financial statements.
Key decisions made in compiling the statements
All financial statements require decisions, or judgments, on how to compile the financial statements. We’ll review the significant ones with you to make sure you understand their impact and your role in making them.
Your responsibility in the process
We’ll obtain your acknowledgement of responsibility for the financial statements.