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
Insurance Contracts
The AcSB received an update on international developments relating to IFRS 17 Insurance Contracts, noting that the International Accounting Standards Board (IASB) plans to develop additional educational material for the amendments to IFRS 17 issued in June 2020.
The AcSB supports the revised effective date and plans to complete its endorsement process for the amendments, incorporating them into Part I of the CPA Canada Handbook – Accounting no later than November 2020.
The AcSB also discussed next steps to support IFRS 17 implementation in Canada. The Board continues to maintain dialogue with industry stakeholders and other national standard setters. Given the standard is now finalized, the Board encourages entities to focus on implementation. The Board will continue to operate its Insurance Transition Resource Group to discuss and raise awareness of implementation matters to help entities adopt IFRS 17 in Canada. The Group’s next meeting will be posted on the Group’s webpage once scheduled.
Primary Financial Statements
The AcSB discussed the key issues to be included in its response letter to the IASB’s Exposure Draft, “General Presentation and Disclosures.” As part of the discussion, the Board considered stakeholder feedback obtained through its outreach on this topic.
The AcSB encourages stakeholders to share their views on the Exposure Draft by submitting comment letters to the IASB by September 30, 2020, with a copy to the AcSB. If respondents would like the Board to consider their comments when drafting its letter to the IASB, they should submit their response letters to the AcSB before the September 30, 2020, deadline.
Accounting Standards for Private Enterprises
Leases
The AcSB discussed the proposals to be included in an exposure draft to amend Section 3065, Leases, to provide relief for both lessees and lessors on accounting for rent concessions that have arisen as a consequence of the COVID-19 pandemic. The Board decided to limit the relief to rent concessions received as a direct result of COVID-19 and to only those lease payments originally due on or before December 31, 2021.
The AcSB expects to issue the exposure draft in September 2020. In response to stakeholders’ need to have the relief available for the 2020 year-end reporting period, the Board plans to issue the exposure draft with a short comment period and to incorporate the amendments into Part II of the Handbook in November 2020. Stay up to date on the progress of this project by visiting the project page.
Relevance of Financial Reporting
Framework for Reporting Performance Measures
The AcSB discussed its planned activities relating to its Framework for Reporting Performance Measures (the Framework). The Board decided to continue to promote the use of the Framework through engagement with targeted groups, such as the Institute of Corporate Directors and the CFA Institute. The Board also decided to undertake testing of the Framework.
Due Process
2020-2021 Annual Plan and Priority Projects
The AcSB received an update on the activities relating to its 2020 – 2021 Annual Plan and continued discussing how the COVID-19 pandemic affects its ability to achieve the objectives laid out in its annual plan. The Board noted that while it is progressing well on planned activities, certain activities will not be achieved as contemplated in the annual plan. The Board continues to reprioritize to ensure it can address implementation challenges and provide the information users may need in these unique circumstances. The Board confirmed its priority projects for the short term, including responding to COVID-19-specific issues, progressing work on the Part II and Part III Cloud Computing projects, and supporting the IASB’s Primary Financial Statements and Goodwill and Impairment projects.
Board Advisory Committees
The AcSB received feedback on the discussions at recent meetings of its Not-for-Profit Advisory Committee, Private Enterprise Advisory Committee, and User Advisory Committee.