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.
The AcSB values input and feedback from interested and affected parties and can be reached anytime through our online form.
IFRS® Accounting Standards
Equity Method
The AcSB discussed key points to include in its response to the International Accounting Standards Board’s (IASB) Exposure Draft for its Equity Method of Accounting project. The Exposure Draft was issued on September 19, 2024, and comments are due January 20, 2025. In developing the key points to include in its response, the AcSB considered feedback from its User Advisory Committee and IFRS Accounting Standards Discussion Group.
The AcSB will consider further feedback from responses to its wraparound Exposure Draft (comments are due by January 8, 2025). The Board will review and approve its response letter in January 2025 and will submit the final letter to the IASB by the January 20, 2025, deadline.
Standards for Private Enterprises and Not-for-Profit Organizations
Subsequent Measurement of Goodwill and Acquired Intangible Assets
The AcSB continued discussing proposals for inclusion in a future exposure draft on its Subsequent Measurement of Goodwill and Acquired Intangible Assets project. The exposure draft proposals will offer relief from recognizing intangible assets acquired in a business combination (relief) in Part II of the Handbook.
The AcSB discussed the disclosure requirements for an entity electing the relief. The Board reaffirmed its tentative decision made at its September 2024 meeting to require disclosure of qualitatively significant intangible assets acquired in a business combination that are subsumed into goodwill when these assets are readily identifiable. The Board also tentatively decided to require these disclosures only in the year of the business combination.
The AcSB continued discussing sweep issues. The Board tentatively decided not to provide guidance in the standard on the subsequent sale of intangible assets subsumed into goodwill, given the limited prevalence of such transactions and the fact that there is currently no derecognition guidance on tangible and intangible assets in Part II of the Handbook. The Board also tentatively decided to amend Goodwill and Intangible Assets, paragraph 3064.73, to include an additional example of an impairment indicator: a sale of an intangible asset that was not previously individually identified and separately recognized.
The AcSB tentatively decided not to require entities to change the balance sheet description of “goodwill” when the relief is elected. The Board noted that intangible assets not separately identified and recognized as the result of an entity electing the relief would meet the current definition of “goodwill” in Section 1582, Business Combinations, and Section 3064.
The AcSB will continue discussing the exposure draft proposals at its January 2025 meeting.
Agriculture and Inventories
The AcSB discussed proposals to include in an exposure draft for its Amendments to Section 3041, Agriculture, project. In its discussion of the proposals, the Board considered feedback from its Agricultural Advisory Group, Private Enterprise Advisory Committee, and Medium and Small Practitioners Advisory Committee.
Amendments to disclosures of inventories
The AcSB discussed proposals to:
- remove the disclosure requirements in Agriculture, paragraphs 3041.88(c)-.88(d), for the net realizable value model and remove disclosure requirements in paragraph 3041.86(d) for the cost model; and
- remove the corresponding disclosure from Inventories, paragraph 3031.35(c), along with its related guidance and an Illustrative Example.
The AcSB tentatively decided to proceed with the amendments to Section 3041, as well as consequential amendments to Section 1520, Income Statement, in consideration of feedback from the Agricultural Advisory Group. Regarding the proposal to remove the corresponding disclosure from Section 3031, the Board decided to not address this issue within the scope of this project given mixed feedback received from the Board’s advisory committees and concerns about expanding the scope of the project beyond Section 3041.
Clarifications to accounting for productive biological assets
The AcSBdiscussed a proposal to amend paragraph 3041.66 to address issues raised with the paragraph’s scope. The Board tentatively decided to clarify that the paragraph can be applied to any type of productive biological asset by expanding the example in the paragraph to add reference to other biological forms (e.g., plants).
The AcSB also discussed feedback from the Agricultural Advisory Group regarding the application of paragraphs 3041.64 and 3041.66 for productive biological assets. Specifically, the Board considered whether additional authoritative guidance was needed on how agricultural producers determine productive capacity, to help with application of this requirement in practice. The Board tentatively decided to not propose changes to the authoritative guidance regarding this topic, instead noting this is an area where agricultural producers will need to apply judgment. The Board tentatively decided to use the exposure draft to gather more information regarding the accounting for productive biological assets, specifically those managed on a collective basis, and whether additional guidance (authoritative or non-authoritative) would be helpful.
The AcSB also discussed proposals to add new authoritative guidance to clarify the accounting for changes in the useful life of a productive biological asset, and tentatively decided to clarify these requirements. The proposed clarifications will provide guidance on how to account for when a productive biological asset that is being amortized is subsequently determined to have an indefinite useful life, or viceversa.
Effective date and transition
The AcSB also discussed the proposed effective date and transition guidance. The Board tentatively decided to propose an effective date of January 1, 2027, with early adoption permitted.
The AcSB discussed the transition requirements and tentatively decided to require retrospective application of the requirements, except for the proposals regarding changes in the useful life of productive biological assets, which will be applied on a prospective basis. Prospective application is in line with the requirements on changes in accounting estimate in Section 1506, Accounting Changes.
Next steps
The AcSB will be presented with a communications and outreach plan and a revised exposure draft to be balloted at its January 2025 meeting. The Board plans to issue the exposure draft in March 2025 with a 60-day comment period. As discussed at the September 2024 Board meeting, in lieu of conducing a post-implementation review of Section 3041, this exposure draft will be used to seek feedback on whether there are issues not addressed in the exposure draft that the Board should consider when it discusses future priorities.
Detailed Review of ASPE
The AcSB continued its discussions on its detailed review of Accounting Standards for Private Enterprises (ASPE). The discussion focused on feedback received at the October and November 2024 meetings of its Private Enterprise Advisory Committee, Not-for-Profit Advisory Committee, and Medium and Small Practitioners Advisory Committee on the identified issues for the Part II standards for the impairment of long-lived assets, leases, and financial instruments.
The AcSB also provided input on the information needed on a third batch of Part II standards, which includes the standards on revenue, employee future benefits, income taxes, disposal of long-lived assets and discontinued operations, related party transactions, and stock-based compensation. This third batch of standards will be discussed at future Private Enterprise Advisory Committee and Medium and Small Practitioners Advisory Committee meetings in the first half of 2025. The Board will consider this feedback at a future meeting as it develops a consultation paper for this project. The Board plans to issue its consultation paper in the second half of 2025.
Governance
AcSB’s Annual Plan
The AcSB discussed an initial draft of its annual plan for the fiscal year beginning on April 1, 2025, including a reassessment of the Board’s key risks. The Board will evaluate its work plan in the coming months and make decisions on the activities to undertake in 2025-2026. The Board plans to approve the 2025-2026 Annual Plan in March 2025.
AcSB’s Performance Report
The AcSB discussed a draft of its performance report for the 2024-2025 operating year. This draft report will be presented to the Reporting and Assurance Oversight Council at its February 2025 meeting so that it can perform an interim assessment of the Board’s performance for the year. The Board expects to approve its final performance report in March 2025 for presentation to the Oversight Council at its June 2025 meeting.
Due Process
AcSB’s Advisory Committees and Working Groups
IFRS® Accounting Standards Discussion Group
The AcSB received an update on the December 3, 2024, IFRS Accounting Standards Discussion Group meeting. At this meeting, the Group discussed the IASB Exposure Drafts, “Equity Method,” and “Provisions—Targeted Improvements”; the recommendations made by the IFRS Accounting Standards Discussion Group at its September 2024 meeting related to the agenda paper on the Derecognition of Financial Liabilities Settled Using Electronic Payment Systems; IFRS 9 – Accounting for Debt Modifications – Helpful Reminders; Year-end Financial Reporting Reminders, and more.