FEDERAL REG

SOR/2016-98: Regulations Amending Certain Department of Industry Regulations

REGISTRATION OF FEDERAL REGULATION - VIA OIC DATABASE, PRIOR TO PART II OF THE GAZETTE

Registered
May 13, 2016


REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Issues The Standing Joint Committee for the Scrutiny of Regulations (SJCSR) has identified a minor error in the Canada Business Corporations Regulation, 2001 (CBCR) and the Canada Cooperatives Regulations (the Coop Regulations). The Chartered Professional Accountants Canada (CPA) have identified a need to update... (Click for more)


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Published on May 13, 2016

Bill Summary

SOR/2016-98: Regulations Amending Certain Department of Industry Regulations

REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Issues The Standing Joint Committee for the Scrutiny of Regulations (SJCSR) has identified a minor error in the Canada Business Corporations Regulation, 2001 (CBCR) and the Canada Cooperatives Regulations (the Coop Regulations). The Chartered Professional Accountants Canada (CPA) have identified a need to update the name of the Canadian Institute of Chartered Accountants (CICA) Handbook in the CBCR, Coop Regulations and the Canada Not-for-profit Corporations Regulations (the NFP Regulations). Also there are spent provisions in the CBCR and a cross-reference error in the Coop Regulations. Background The affected regulations set out details including prescribed time periods, name granting rules and requirements for notices and forms of proxy that business corporations, cooperatives and not-for-profit organizations send to their shareholders or members. The CBCR apply to share corporations created or continued under the Canada Business Corporations Act. The Coop Regulations apply to cooperatives created or continued under the Canada Cooperatives Act. The NFP Regulations apply to not-for-profit corporations created or continued under the Canada Not-for-profit Corporations Act. Objectives The objectives of these amendments are to address the issue raised by the SJCSR; update the name of the standards handbook for accounting purposes; repeal spent regulations; and correct a cross-reference error. Description The amendments delete the reference to “C.R.C., c. 1517” in the English version of paragraph 87(1)(b) of the CBCR and subparagraph 53(1)(a)(iii) of the Coop Regulations; change the CICA Handbook references to the Chartered Professional Accountants Canada (CPA) Handbook in the CBCR, the Coop Regulations and the NFP Regulations; delete the transition provisions, which are spent regulations, associated with the changes made in 2010 to the standards for producing financial statements and auditing those statements; and change section 36 of the Coop Regulations to replace the reference to subsection 4(5) of the Act with the word “distributing.” “One-for-One” Rule The “One-for-One” Rule does not apply to this proposal, as there is no change in administrative costs to business. Small business lens The small business lens does not apply to this proposal, as there are no costs to small business. Consultation The Chartered Professional Accountants Canada was consulted on these amendments and is supportive of updates to the handbook title. The Co-operatives and Mutuals Canada, the national association of Canadian cooperatives, was consulted on the change to section 36 of the Coop Regulations and was supportive. Rationale The amendments are to correct minor errors in the regulations and to repeal spent regulations. Specifically, the amendments address four issues: (1) The Standing Joint Committee for the Scrutiny of Regulations has noticed that there is a typographical error in the English versions of paragraph 87(1)(b) of the CBCR and subparagraph 53(1)(a)(iii) of the Coop Regulations. The reference to “C.R.C., c. 1517” needs to be removed. It is not in the French version. (2) The Chartered Professional Accountants Canada (CPA) has noted that the current references to the CICA handbooks in the CBCR, the Coop Regulations and the NFP Regulations need to be updated. The CPA is the new association of professional accountants in Canada that replaces the Canadian Institute of Chartered Accountants. As a result, the names of the handbooks have changed. There has not been a change in the accounting rules, just in the names of the handbooks. (3) In 2010, the CBCR were amended in response to changes being made to the Canadian generally accepted accounting principles (GAAP) by the Accounting Standards Board. The changes were to the requirement for public corporations to prepare their financial statements in accordance with the International Financial Reporting Standards (IFRS). Private companies were given the choice to use either the IFRS or the accounting standards developed for private enterprises. The regulatory amendments included transition provisions that covered financial years 2010 and 2011. The financial years associated with the transition provisions are complete so the transition provisions are spent regulations and should be repealed. (4) In 1998, subsection 4(5) of the Canada Cooperatives Act was a definition of “distributing cooperative.” In 2001, the subsection was amended and the definition of “distributing cooperative” was added to the definitions in subsection 2(1) of the Canada Cooperatives Act. Section 36 of the Coop Regulations, which cross-referenced subsection 4(5) of the Canada Cooperatives Act, was not updated at that time. The regulatory amendment will correct the error by simply referring to “distributing cooperative.” Contact Coleen Kirby Manager Policy Section Corporations Canada Industry Canada Telephone: 1-866-333-5556 Email: [email protected] Footnote a S.C. 2001, c. 14, s. 125 Footnote b R.S., c. C-44; S.C. 1994, c. 24, s. 1 Footnote c S.C. 2001, c. 14, s. 227 Footnote d S.C. 1998, c. 1 Footnote e S.C. 2009, c. 23 Footnote 1 SOR/2001-512 Footnote 2 SOR/99-256 Footnote 3 SOR/2011-223

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