The Canadian Securities Administrators are seeking public comment on a harmonized set of accounting principles and auditing standards.

These requirements will apply to all issuers that are reporting issuers in one or more Canadian jurisdictions, and all registrants registered in one or more Canadian jurisdictions.

The proposed new rule sets out the accounting principles that issuers (other than investment funds) and registrants may use to prepare their financial statements, and the auditing standards that may be applied to audit those financial statements.

The new rule brings together previously proposed rules regarding Continuous Disclosure Obligations and the Harmonization of Prospectus Requirements Across the CSA. It also incorporates comments received on those previously proposed rules.

The new rule generally requires that financial statements be prepared in accordance with Canadian GAAP and audit reports be prepared in accordance with Canadian GAAS. Exemptions to the general rules are available to certain categories of issuers and registrants.

The CSA note that the rule increases the number of acceptable accounting principles and auditing standards for certain issuers and registrants. The acceptable accounting principles and auditing standards for continuous disclosure, prospectus and registration obligations will be virtually identical, reducing the cost of compliance for issuers and registrants.

As well, issuers and registrants will be able to refer to one instrument to determine what accounting principles and auditing standards are acceptable for a particular filing; and, future changes will be easier to accommodate because only one instrument will need to be amended.

Comments are due by August 14.