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
Business Combinations under Common Control
The AcSB discussed its draft response letter to the International Accounting Standards Board’s (IASB’s) Discussion Paper, “Business Combinations under Common Control,” and provided staff with comments to incorporate into its final letter. The AcSB encourages stakeholders to share their views on the Discussion Paper by submitting their response letters to the IASB by September 1, 2021, with a copy to the AcSB.
Insurance
The AcSB received an overview of the expected narrow-scope amendment to IFRS 17 Insurance Contracts. This targeted proposal aims at improving the usefulness of comparative information presented on initial application of IFRS 17 and IFRS 9 Financial Instruments.
The AcSB discussed and approved a plan to respond to the forthcoming exposure draft, which includes consulting with its Insurance Transition Resource Group.
The AcSB encourages Canadian stakeholders to continue with their implementation efforts. The Board further notes that entities would need to collect information starting from the transition date of IFRS 17 to apply the proposed amendment. Therefore, the Board encourages entities to follow this project to assess potential implications for their implementation efforts.
Rate-Regulated Activities
The AcSB discussed a revised draft of its response letter to the IASB’s Exposure Draft, “Regulatory Assets and Regulatory Liabilities.” The Board approved its response letter, subject to final edits.
The AcSB submitted its response letter to the IASB by the July 30, 2021, deadline.
Sustainability: Changes to the Constitution
The AcSB discussed a draft of its response letter to the IFRS® Foundation Trustees’ Exposure Draft, “Proposed Targeted Amendments to the IFRS Foundation Constitution to Accommodate an International Sustainability Standards Board to Set IFRS Sustainability Standards.” The Board approved its response letter, subject to final edits.
The AcSB submitted its response letter to the IFRS Foundation by the July 29, 2021, deadline.
Third Agenda Consultation
The AcSB discussed the key points to include in its response letter to the IASB’s Request for Information, “Third Agenda Consultation.” As part of the discussion, the AcSB considered stakeholder feedback obtained through its outreach on this project, including a targeted user event.
The AcSB encourages stakeholders to share their views on the Request for Information by submitting comment letters to the IASB by September 27, 2021, with a copy to the AcSB. The Board will be finalizing its response letter to the IASB at is meeting in September 2021. 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 September 10, 2021.
Financial Accounting Standards Board (FASB)
FASB Agenda Consultation
The AcSB discussed the key points to include in its response letter to the FASB’s Invitation to Comment, “Agenda Consultation.” The Board is responding to the FASB’s agenda consultation as the Board acknowledges that some entities in Canada use U.S. generally accepted accounting principles (GAAP) and since investing is a global activity, a common language would be helpful to users when reading financial statements.
The AcSB encourages stakeholders to share their views on the Invitation to Comment by submitting comment letters to the FASB by September 22, 2021, with a copy to the AcSB. The Board will be finalizing its response letter to the FASB at is meeting in September 2021. If respondents would like the Board to consider their comments when drafting its letter to the FASB, they should submit their response letters to the AcSB before September 10, 2021.
Standards for Private Enterprises and Not-for-Profit Organizations
Interest Rate Benchmark (IBOR) Reform
The AcSB discussed the proposals to include in the Exposure Draft to amend Section 3856, Financial Instruments. The amendment would provide relief from the accounting requirements in Section 3856 associated with debt modifications and hedge accounting resulting from IBOR reform.
The AcSB expects to issue the Exposure Draft in September 2021, with a 30-day comment period ending in October 2021. The Board plans to incorporate the amendments into Part II of the CPA Canada Handbook – Accounting in February 2022 so that the amendments are available for an enterprise’s 2021 year-end financial statements.
Standards for Not-for-Profit Organizations
Contributions
The AcSB continued to discuss stakeholders’ feedback received on the Consultation Paper, “Contributions – Revenue Recognition and Related Matters.” The Board considered feedback from comment letters, roundtables, and the Not-for-Profit Advisory Committee on the topics of recognition of revenue from contributions, presentation, and disclosure.
The AcSB plans to discuss the topic of special types of contributions at its meeting in September 2021. The Not-for-Profit Advisory Committee will discuss this topic at its meeting in October 2021 and the Board will consider this feedback at its meeting in November 2021.
International Financial Reporting for NFPOs
The AcSB discussed its draft response letter to Part 1 of the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Consultation Paper, “International Financial Reporting for Non-Profit Organizations,” and provided comments to staff to incorporate into the final letter. The Board’s response letter to Part 1 of this Consultation Paper was submitted by the July 30, 2021, deadline. The Board encourages stakeholders to share their views on Part 2 of the Consultation Paper by submitting comment letters by September 24, 2021, with a copy to the AcSB.
Due Process
AcSB’s Advisory Committees and Pension Plan Working Group
The AcSB received feedback on the discussions at recent meetings of its Not-for-Profit Advisory Committee, User Advisory Committee, and Pension Plan Working Group.
Not-for-Profit Advisory Committee
Topics discussed at the June 22, 2021, meeting included COVID-19 reporting issues, IBOR reform, the AcSB’s Draft 2022-2027 Strategic Plan, and results of the Board’s survey of Committee volunteers.
User Advisory Committee
Topics discussed at the July 15, 2021 meeting included the IASB’s Third Agenda Consultation, Disclosure Requirements in IFRS Standards, and the AcSB’s Draft 2022-2027 Strategic Plan.
Pension Plan Working Group
Topics discussed at the July 13, 2021, meeting included Disclosure Initiative – Targeted standards level review, Issues with Section 4600, Pension Plans, and the AcSB’s Draft 2022-2027 Strategic Plan.
AcSB’s 2021-2022 Annual Plan
The AcSB received a quarterly update on the activities relating to its 2021-2022 Annual Plan. The Board noted that while it is progressing well on planned activities, it will continue to monitor for changes in the environment to ensure the Board’s activities continue to address stakeholders’ needs. The Board will consider another quarterly update at its October 2021 meeting.
AcSB’s Framework for Reporting Performance Measures
The AcSB received an overview of the Canadian Security Administrator’s (CSA) National Instrument 52-112, Non-GAAP and Other Financial Measures Disclosure Companion Policy and Related Consequential Amendments (NI 52-112). The Board discussed proposed changes to the AcSB’s Framework for Reporting Performance Measures in light of recent changes to the Board’s operating environment and the issuance of NI 52-112. The Board will continue its discussion at its meeting in September 2021 and intends to issue a revised Framework for Reporting Performance Measures in the fourth quarter of 2021.