Canada-U.S. Trade Crisis: Potential Accounting Impacts

Various announcements concerning the imposition of tariffs have been made since the November 5, 2024, U.S. election. The uncertainties associated with the protectionist measures that could come into effect and the resulting countermeasures are likely to have a significant impact on the economic environment in which many entities operate and, more broadly, on the Canadian economy as a whole. Entities should carefully consider the accounting implications of this uncertain environment.

This edition of Flash presents accounting implications and identifies key financial reporting areas that entities should consider when determining the potential impact of the Canada-U.S. trade crisis on their entity and on the results, financial position and disclosures in their financial statements prepared in accordance with accounting standards for private enterprises (ASPE) or accounting standards for not-for-profit organizations (ASNFPO).