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.
Due Process
AcSB Operations in the Current Environment
The AcSB discussed the evolving situation related to the COVID-19 pandemic. The Board sought to alleviate pressure for stakeholders as they navigate these challenging and uncertain times. The Board also emphasized that decisive action was necessary to provide stakeholders with a roadmap of its activities.
The AcSB based its decisions on the information available as of the meeting date. The Board will be responsive and agile as the environment changes. At future meetings, the Board will assess the impact to stakeholders as required. The Board values input and feedback from stakeholders and can be reached anytime through our online form.
In assessing the current environment and making its decisions about how to move forward, the AcSB considered:
- being sensitive to the challenging environment in which stakeholders are operating;
- recognizing that the challenges of operating in the current environment limit the time stakeholders have to consider ongoing projects and implement newly issued standards;
- progressing projects in areas stakeholders have asked for guidance; and
- providing a clear way forward to limit uncertainty for stakeholders.
With these considerations in mind, the AcSB made decisions on the following items.
Standards Issued and Effective January 1, 2020, and January 1, 2021
The AcSB is deferring the effective dates of the following amendments effective for years beginning on or after January 1, 2020, by one year to January 1, 2021:
- Amendments to Section 3051, Investments;
- Amendments to Section 3465, Income Taxes; and
- Amendments to Section 3856, Financial Instruments.
The AcSB is also deferring the effective dates of the new Section 3041, Agriculture, and amendments to Section 3400, Revenue, effective for years beginning on or after January 1, 2021, by one year to January 1, 2022.
Early adoption of each of these amendments and new Section 3041 continues to be permitted.
Documents Issued for Comment
Exposure Draft, “Combinations – Initial Measurements and Related Disclosures”
Further to its decision in early April to extend the comment period deadline from April 14, 2020, to May 15, 2020, the AcSB considered whether an additional extension was required. The Board considers this project a high priority for not-for-profit stakeholders and decided to retain the extended comment deadline of May 15, 2020. This will enable the project to be completed according to the original timeline. The Board will assess if it has received sufficient stakeholder feedback closer to the May 15, 2020, comment deadline and decide whether an additional extension is required.
Forthcoming Documents for Comment
Consultation Paper, “Contributions – Revenue Recognition and Related Matters”
The AcSB will proceed with issuing its Consultation Paper in May 2020. To give stakeholders more time to respond, the Board decided to extend the comment period . The Board will assess the comment period at its May meeting, reflecting on the importance of stakeholders’ ability to provide their feedback and moving the project forward.
Strategic Plan
The AcSB discussed next steps in respect to its Draft Strategic Plan. Its current Strategic Plan covers the period 2016-2021, and the Board planned to issue its next Draft Strategic Plan for comment in Q2 2020. The Board acknowledged that should it issue the next Draft Strategic Plan as planned, the Board would be unable to engage stakeholders to the extent it would have liked. Therefore, the Board decided to extend its current Strategic Plan by one year to 2022 and to defer the issuance of its Draft Strategic Plan. This extension will also ensure that the Board is in a position to respond to the immediate issues arising from the COVID-19 pandemic and to refocus its priorities for its next Strategic Plan.
IFRS® Standards Update
The AcSB will continue to support the International Accounting Standards Board’s (IASB) high-priority projects and their associated timelines. In addition, the Board will support IASB initiatives to respond to the COVID-19 pandemic, as required.
The AcSB is monitoring the IASB’s review of their current projects and will respond accordingly, including revising stakeholder outreach plans.
COVID-19 News and Resources
The AcSB discussed the COVID-19 resources being developed to assist stakeholders in addressing the challenges that may arise in applying IFRS Standards during this time.
The AcSB decided to also develop similar resources for private enterprises and not-for-profit organizations.
The AcSB is issuing these resources over the next one to two weeks.
Future Meetings
The AcSB decided that all Board and Advisory Committee meetings will be held virtually until July 31, 2020. The Board will continue to monitor the developments related to the COVID-19 pandemic and reassess the format of its meetings as needed.
AcSB 2019-2020 Performance Report
The AcSB agreed to review and approve an updated draft of its performance report for the year ended March 31, 2020. The report captures the changes resulting from the Board’s discussion on responding to the COVID-19-related issues. The Accounting Standards Oversight Council will receive the report in June 2020 to assess the Board’s performance for the 2019-2020 operating year.