It has been almost 35 years since the standard on compilation engagements was last been revised. The Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements, updates and strengthens the requirements and guidance for accepting, conducting, and reporting on compilation engagements. Its impact will not only be felt by practitioners, but also by users – including loan officers who use compiled financial information when granting loans or extending credit to small and mid-sized companies.

SUPPORT IS NOW AVAILABLE

We have issued the following comprehensive guidance materials to support effective implementation of the new compilation standard, which became effective for periods ending on or after December 14, 2021. 

Resources include:

Practitioner's Alert (February 2020)

Learn about the new standard on compilation engagements, CSRS 4200, Compilation Engagements, and how it impacts you. Understand the changes from the previous standard and learn how those changes will impact your performance of compilation engagements. 

Covers:

• why the change was needed
• significant differences between the previous and new standard
• services excluded from CSRS 4200
• description of the basis of accounting
• the new compilation engagement report

The new compilation engagements standard: Key themes (February 2022)

This article provides an overview of what you need to know about CSRS 4200. As a practitioner who performs compilation engagements, the key themes to familiarize yourself with include what CSRS 4200 is, why updates were needed to this standard and how reporting requirements change from this introduction.

The new compilation engagements standard – How are you managing? (February 2023)

This article shares implementation lessons learned a year after CSRS 4200 became effective and references observations from practice inspectors across the country.

Practitioner's Implementation Tool (June 2020, updated February 2023)

Learn about the steps required in order to implement CSRS 4200 and perform compilation engagements.

The tool includes:

• factors to consider when determining if an engagement can be accepted
• considerations when performing the engagement, including frequently asked questions throughout the tool
• examples of descriptions of the basis of accounting
• sample compilation engagement report
• a summary of the significant differences between CSRS 4200 and Section 9200, Compilation Engagements

Practitioner's Pulse Webinar (July 2020)

Learn about CSRS 4200, Compilation Engagements and the implementation guidance available. Practitioners share practical tips and answer questions on how to implement this standard.

This special edition Practitioner’s Pulse webinar was originally recorded in July 2020 to help practitioners prepare for first-time implementation of CSRS 4200. This webinar features a panel of practitioners sharing their thoughts on CSRS 4200, which many practitioners previously referred to by the title of the communication under Section 9200, Notice to Reader. The panel discusses significant changes brought about in CSRS 4200 as compared to the previous standard and the related impact to their work. The panel also addresses the most common implementation questions practitioners have raised regarding the new standard.

Management Briefing (February 2020)

This briefing will facilitate discussions between management and practitioners on the new compilation standard. It will help management understand how they meet any requests or requirements from third parties who use compiled financial information.

Includes:

• an illustrative example of the new compilation engagement report
• an explanation of the new note required that will describe the basis of accounting applied in the preparation of the compiled financial information
• expected changes in the new compilation engagement
• summary of other possible engagements

Third-Party Briefing (February 2020)

This briefing is designed to support discussions between management, third parties, and practitioners on the new compilation standard. It will help third parties understand the nature of a compilation engagement and other services available and inform them of the changes resulting from the new standard.

Includes:

• an illustrative example of the new compilation engagement report they can expect to see
• an explanation of the new note required that will describe the basis of accounting applied in the preparation of the compiled financial information
• what is a compilation engagement
• why a change was needed
• summary of other possible engagements

For additional information on compilation engagements, visit frascanada.ca/compilations