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.
IFRS® Standards
Goodwill and Impairment
The AcSB considered a preliminary plan to respond to the International Accounting Standards Board’s (IASB) upcoming discussion paper related to its Goodwill and Impairment project.
The IASB expects to issue its discussion paper in February 2020.
The AcSB will discuss the communication activities related to this project and the final plan to respond to the discussion paper once the IASB issued it.
IFRS® Discussion Group (IDG)
The AcSB received feedback on the discussions at a recent meeting of its IFRS Discussion Group. The Group provides the Board with valuable input, discussing a wide range of topics. For example, at its meeting on December 12, 2019, the Group discussed IFRS 16 Leases, IAS 19 Employee Benefits, and accounting implications arising from climate change, among other topics.
The meetings are well attended by Canadian and international observers through live streaming. The December 2019 meeting had more than 100 observers from 12 countries. The AcSB directed staff to monitor the type of stakeholders observing the meetings.
Standards for Not-for-Profit Organizations
Contributions
The AcSB considered the feedback from the Not-for-Profit Advisory Committee’s fatal-flaw review of the consultation paper. The discussion focused on the more significant comments raised relating to:
- examples of unrestricted contributions;
- characteristics of restricted contributions;
- recognition of contributed materials and services; and
- the definition of an endowment.
The discussion also included AcSB members’ general comments on the latest draft of the consultation paper. The Board approved the issuance of the consultation paper, subject to final drafting changes and a written ballot.
Based on stakeholder feedback that a comment period deadline in July 2020 is not preferred, the AcSB decided at its September 17-18, 2019, meeting to delay the issuance of the consultation paper. Therefore, it plans to issue the consultation paper in May 2020,with comments due in September 2020.
Standards for Pension Plans
The AcSB considered feedback on application issues received from stakeholders including actuaries, public practitioners, and preparers from across Canada. The Board discussed available options to address the concerns raised. It directed staff to engage additional stakeholder groups, including users and pension regulators, and to further explore the options discussed.
The AcSB plans to continue its discussions in March 2020.
Pre-changeover Accounting Standards
The AcSB agreed that Part V will be removed from the CPA Canada Handbook – Accounting as of March 1, 2020. The Board discussed the communication activities related to the removal, including the importance of communicating to stakeholders that these materials will still be accessible from CPA Canada’s Library Services.
The AcSB agreed that the content of Section 4250, Future Oriented Financial Information, will be available in Knotia as non-authoritative guidance as of March 1, 2020.
Research Program
The AcSB discussed a report on research activities, including activities to engage academics in standard setting. The Board directed staff to propose research topics that can inform current and future projects and strategies, and how to involve academics based on the nature and type of the research.
Due Process
2019-2020 Interim Performance Report
The AcSB discussed an initial draft of its performance report for the year ending March 31, 2020, in preparation for a meeting with the Accounting Standards Oversight Council’s (AcSOC) Performance Review Committee. The Board expects to approve the final performance report in April 2020, after considering the Council’s and the Committee’s input and updating the report for the Board’s activities up to March 31, 2020.
2020-2021 Annual Plan
The AcSB continued discussing a draft of its annual operating plan for the year beginning on April 1, 2020. The discussion included the reassessment of the Board’s key risks.
The AcSB will present its draft annual plan to AcSOC and the Performance Review Committee in February. The Board plans to approve its annual plan in March 2020, after considering the Council’s and Committee’s input.
Strategic Plan
The AcSB continued its discussions relating to its next Strategic Plan. The Board considered revisions to its Mission Statement and the input to be obtained through stakeholder feedback. The Board began discussing its strategies and objectives.
The AcSB will review a preliminary draft of the plan at its February meeting and expects to issue its Draft Strategic Plan for comment in Q2 2020.
AcSB Terms of Reference and Statement of Operating Procedures
The AcSB reviewed revisions to its Terms of Reference and Statement of Operating Procedures. Subject to minor amendments, the Board authorized submitting to AcSOC the Terms of Reference for final approval and the Statement of Operating Procedures for ratification.
AcSB Committees’ Terms of Reference and Statements of Operating Procedures
The AcSB considered input from its standing committees on their Terms of Reference and Statements of Operating Procedures. Subject to minor amendments, the Board approved revised versions of their Terms of Reference and ratified revised versions of their Statements of Operating Procedures.
The AcSB considered input from its standing committees on their Terms of Reference and Statements of Operating Procedures. Subject to minor amendments, the Board approved revised versions of their Terms of Reference and ratified revised versions of their Statements of Operating Procedures.