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 stakeholders and can be reached anytime through our online form.
IFRS® Standards
IFRS® Discussion Group
The AcSB received feedback from the IFRS Discussion Group’s meeting on May 27, 2020. This feedback included the Group’s recommendation that the Board suggest the topics of push-down accounting and accounting for asset acquisitions be considered by the International Accounting Standards Board (IASB) as part of its 2020 Agenda Consultation or be referred to the IFRS® Interpretations Committee.
The AcSB agreed to consider including these two topics when it deliberates its response to the IASB’s 2020 Agenda Consultation, in addition to other possible items that will be considered.
The AcSB also received an update on the COVID-19-related accounting issues the Group discussed at its meeting on May 27, 2020. The Board directed the staff to update the AcSB COVID-19 Resource, “Potential Impact on Lease Accounting,” to reflect the recent amendments to IFRS 16 Leases addressing the lessees’ accounting for COVID-19-related rent concessions.
Standards for Private Enterprises
Annual Improvements
The AcSB discussed which issues to include in its 2020-2021 Annual Improvements cycle considering stakeholders’ ability to provide feedback in the current environment. The Board decided to include all five issues it was considering for annual improvements as these will provide clarity to stakeholders in areas where they have asked for guidance. The Board will issue an exposure draft no later than the fall of 2020.
Implementation of Accounting Standards for Private Enterprises
The AcSB received feedback from its Private Enterprises Advisory Committee on implementation questions that have been raised during the COVID-19 pandemic relating to lease accounting, impairment, employee future benefits and government assistance. This feedback included the Committee’s recommendations about whether any standard setting or additional implementation support is needed for these issues.
The AcSB decided to issue an exposure draft to amend Section 3065, Leases, to provide relief for both lessees and lessors on accounting for rent concessions in light of the COVID-19 pandemic. The exposure draft is expected to be issued in September 2020. The Board will discuss the proposals in the exposure draft and the timeline at its meeting on July 28, 2020.
The AcSB decided no standard setting is needed on the other issues at this time but will continue to provide implementation support through resources on its website.
Employee Future Benefits
The AcSB reviewed the final draft of the amendments to Section 3462, Employee Future Benefits, and Basis for Conclusions. The Board decided to add a future project on individual pension plans to be considered as part of its agenda-setting activities. In addition, the Board discussed further environmental developments in light of COVID-19, reaffirming the effective date of January 1, 2022.
The AcSB approved the issuance of the final amendments, subject to final drafting and a written ballot.
The AcSB plans to issue the final amendments in the fourth quarter of 2020. The amendments will be effective January 1, 2022, with early adoption permitted. The Board encourages stakeholders to consider early adoption of the amendments. Particularly, in circumstances where a funding valuation is required to be completed prior to the effective date of the amendments, stakeholders should consider completing the required accounting valuation for unfunded plans at the same time.