This summary of Accounting Standards Board (AcSB) decisions has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussion on projects, which may change after further deliberations by the Board. Decisions to publish Handbook material are final only after a formal ballot process.
The AcSB will respond to change and reprioritize when necessary, ensuring we can address implementation challenges and provide the information users may need in these unique circumstances.
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Standards for Private Enterprises and Not-for-Profit Organizations
Financial Statement Concepts
The Accounting Standards Board (AcSB) received a summary of research performed to date on Section 1000, Financial Statement Concepts, and Section 1001, Financial Statement Concepts for Not-for-Profit Organizations, in Parts II and III of the CPA Canada Handbook – Accounting, respectively. Additionally, the Board considered a comparison of Canadian domestic financial statement concepts to frameworks in other jurisdictions.
The AcSB discussed feedback from its Private Enterprise Advisory Committee and Not-for-Profit Advisory Committee regarding how financial statement concepts are currently used and the challenges with applying those concepts. Further, the Board discussed what the intended use of financial statement concepts should be and agreed that they should not be used to replace or override authoritative accounting standards.
The AcSB then discussed the benefits of a potential financial statement concepts modernization project. The Board agreed that financial statement concepts in Parts II and III of the Handbook should be reviewed to ensure they are fit for purpose for Canadian entities. Additionally, the Board agreed that such a project should take a phased approach to identify any areas for improvement.
The AcSB will discuss a project proposal at its June 2024 meeting.
Standards for Not-for-Profit Organizations
Contributions
The AcSB discussed a draft of its feedback statement regarding the Board’s Exposure Draft, “Contributions – Revenue Recognition and Related Matters.” The feedback statement summarizes the views heard on the Exposure Draft proposals and additional outreach activities. It also explains why the Board decided to continue to allow an accounting policy choice for the recognition of contributions and develop a new exposure draft that will propose improvements to both existing recognition methods. The feedback-statement document will be published in May 2024. The AcSB will continue discussing the project at its May 2024 meeting.
Governance
AcSB’s Performance Report
The AcSB approved its performance report for the operating year ended March 31, 2024, for presentation to the Accounting Standards Oversight Council’s Performance Review Committee. The Committee will receive this report in May 2024 to assess the Board’s performance for the 2023-2024 operating year.
The AcSB also approved its 2023-2024 Annual Report and plans to issue it in June 2024.
AcSB Member and Volunteer Surveys
The AcSB discussed the results of a self-assessment of its members and surveys of other volunteers on the Board’s performance and its related committees and groups in 2023-2024. The Board discussed actions to address the areas of significant feedback.
Due Process
AcSB’s Advisory Committees and Working Groups
Insurance Transition Resource Group
The AcSB received an update on the March 12, 2024, Insurance Transition Resource Group meeting. At this meeting, the Group discussed their experiences with the implementation of IFRS 17 Insurance Contracts, which took effect on January 1, 2023. The Group also provided feedback to help inform the AcSB’s research on the Statement of Cash Flows and Related Matters. Finally, the Group discussed the results of the volunteers’ survey on the Group’s performance in 2023-2024. The Group was satisfied with the results and will consider how to implement suggestions for improvement.