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
Provisions – Targeted Improvements
The AcSB discussed key points to include in its response to the International Accounting Standards Board’s (IASB) Exposure Draft, “Provisions—Targeted Improvements.” The IASB issued the Exposure Draft in November 2024, and comments are due by March 12, 2025. In developing the key points to include in its response letter, the AcSB considered feedback from 86 interested and affected parties, including users, preparers, practitioners, and regulators.
The AcSB will review and approve its response letter and plans to submit the final letter to the IASB by the March 12, 2025, deadline.
Standards for Private Enterprises and Not-for-Profit Organizations
Relief from Recognition of Intangible Assets and Amortization of Goodwill
The AcSB continued discussing proposals to include in an exposure draft for its Subsequent Measurement of Goodwill and Acquired Intangible Assets project. The proposals will offer relief from recognizing intangible assets acquired in a business combination and an accounting policy choice to amortize goodwill in Part II of the CPA Canada Handbook – Accounting.
The AcSB discussed how a change in accounting policy would be applied. The Board tentatively decided that an exception in Accounting Changes, paragraph 1506.09, should be provided for both the relief and the amortization of goodwill, so that an entity could change its accounting policy even if it doesn’t meet the reliable and more relevant information criterion.
The AcSB tentatively decided that when an entity changes its accounting policy, the change should be applied retrospectively. However, entities discontinuing the relief will have the option to apply a modified retrospective approach. Additionally, the Board tentatively decided to include a provision prohibiting the reversal of any past goodwill amortization.
The AcSB will continue discussing the exposure draft proposals at its March 2025 meeting. The Board plans to issue an exposure draft in Q4 2025.
Standards for Private Enterprises, Not-for-Profit Organizations, and Pension Plans
Guidance Framework – Application Question
The AcSB discussed and considered input from its Pension Plan Advisory Committee on an application question raised regarding the disclosure of accounting policy information by pension plans in accordance with in Part IV of the Handbook – Accounting Standards for Pension Plans.
Based on the Committee’s feedback, the AcSB assessed whether the criteria in its Guidance Framework was met to determine if additional guidance or standard setting is needed to address the issue. The Board concluded that the issue did not meet the criteria and, therefore, no further action is needed at this time.
Relevance of Financial Reporting
Evaluating the Preface
The AcSB discussed research related to its project to Evaluate the Preface to the Handbook. This research included outreach with its Private Enterprise Advisory Committee, Not-for-Profit Advisory Committee, Medium and Small Practitioners Advisory Committee, IFRS® Interpretations Committee Member Support Group, and Pension Plan Advisory Committee. Those consulted thought that certain entities, such as social enterprises, small health and wellness funds, and sports and social clubs are using frameworks that may not be suitable given their size, complexity, and/or the information needs of their financial statement users. However, most of those who were consulted thought changes to the Preface are not needed.
The AcSB considered this feedback and decided that no changes to the Preface are needed. As a result, the Board decided to conclude work on its Evaluating the Preface project. The Board plans to issue a document summarizing the results of its research and its rationale for concluding the project.
Due Process
AcSB’s Advisory Committees and Working Groups
Private Enterprise Advisory Committee
The AcSB received an update on the January 30, 2025, Private Enterprise Advisory Committee meeting. At this meeting, the Committee discussed Financial Statement Concepts, the Detailed Review of ASPE, application questions related to revenue and derecognition of financial liabilities, and more. Please see the Private Enterprise Advisory Committee Meeting Notes – January 30, 2025, for details.
Medium and Small Practitioners Advisory Committee
The AcSB received an update on the January 29, 2025, Medium and Small Practitioners Advisory Committee meeting. At this meeting, the Committee discussed Financial Statement Concepts, the Detailed Review of ASPE, and application questions related to disclosure of contracts in progress, and derecognition of financial liabilities and more. Please see the Medium and Small Practitioners Advisory Committee Meeting Notes – January 29, 2025, for details.