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.
Standards for Private Enterprises
Related Party Combinations
The AcSB received an update on the research and discussed a preliminary staff proposal to advance the Related Party Combinations project using a phased approach.
The AcSB directed staff to gather additional feedback from the Private Enterprise Advisory Committee to better understand the priority of the items included in each phase. The Board will discuss the Committee’s feedback and the project’s direction at a future meeting.
Standards for Not-for-Profit Organizations
Contributions
The AcSB approved a project proposal to develop an exposure draft to improve the guidance on accounting for contributions and related topics. The exposure draft will be based on the proposed approach explored in the Consultation Paper, “Contributions – Revenue Recognition and Related Matters,” recognizing revenue from contributions based on the type of contribution and its characteristics.
The AcSB discussed the project timeline and will continue the discussion at its May 2022 meeting. The Board plans to issue an exposure draft in the first quarter of 2023.
Standards for Private Enterprises and Not-for-Profit Organizations
Cloud Computing Arrangements
The AcSB approved a communication and outreach plan for the Exposure Draft, “Customer’s Accounting for Cloud Computing Arrangements.” The proposed Accounting Guideline takes a pragmatic approach by providing accounting policy choices to address a range of stakeholders’ concerns when accounting for cloud computing arrangements.
The AcSB intends to engage in targeted consultation activities with financial statement users, preparers, and practitioners. The Board will also hold general roundtable discussions for all stakeholders in the second quarter of 2022. Stakeholders can monitor the Cloud Computing project page for opportunities to share feedback on the Exposure Draft. The comment deadline is June 20, 2022.
Financial Statement Concepts
The AcSB discussed the next steps of its Financial Statement Concepts project. The Board will consider this project when developing the exposure draft proposals for the Contributions project and monitor the timing of commencing a more thorough project in conjunction with other priorities for Parts II and III of the CPA Canada Accounting – Handbook.
Due Process
AcSB’s Advisory Committees
Academic Advisory Committee
At its meeting on March 18, 2022, the Academic Advisory Committee discussed strategic research, sustainability reporting, and the Consultation Paper issued by the Independent Review Committee on Standard Setting in Canada.
IFRS® Discussion Group
The AcSB received a status update on the activities undertaken on past issues the IFRS Discussion Group raised. The Board directed staff to consult with the Group to consider if some issues the Board is monitoring are still relevant in Canada. The Board will consider the Group’s feedback at a future meeting and discuss whether to take further action.
AcSB’s Annual Plan
The AcSB continued discussing its 2022-2023 Annual Plan for the operating year beginning April 1, 2022, and considered feedback from the Accounting Standards Oversight Council’s Performance Review Committee. Given the shifting financial reporting landscape, the Board decided that the plan should be flexible to respond to stakeholders’ changing needs, the International Accounting Standards Board’s (IASB) potential new priorities, and sustainability reporting developments.
The AcSB also reaffirmed its focus to advance work and complete its current domestic projects. The Board decided that, as capacity becomes available, it will research future domestic priority topics such as reporting controlled and related entities by not-for-profit organizations and accounting for insurance contracts with a cash surrender value. The Board will also further its understanding on topics such as presentation and disclosure of investments related to standards for pension plans.
The AcSB approved its 2022-2023 Annual Plan and issued it on March 31, 2022.
AcSB’s Communications Framework
The AcSB discussed and approved a communications framework that will be used for all projects, focusing on increasing stakeholder engagement.
Due Process Manual
The AcSB considered improvements to its current process relating to IFRS® Interpretations Committee agenda decisions. The improvements focus on providing more transparency to the Board and its stakeholders on the Interpretations Committee’s agenda decisions. The Board directed staff to pilot a new process using a future agenda decision to better evaluate the effects of the proposed process changes.
The AcSB also considered various options to make the agenda decisions more accessible to all stakeholders. The Board directed staff to explore the available options and determine the most appropriate approach. The Board will continue discussing its process for the Interpretations Committee’s agenda decisions at a future meeting.
Strategic Research
The AcSB continued its discussion on research regarding its proposed strategies related to the preface and scalability, as set out in the 2022-2027 Strategic Plan. The Board received an update on the research conducted since its meeting in January 2022 and provided the staff with direction on additional information needed to further advance these strategic priorities. The Board will continue discussing this research at its meeting in May 2022.
Sustainability Reporting
The AcSB received an education session on the forthcoming exposure drafts based on the International Sustainability Standards Board’s (ISSB), “[Draft] IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information” and “[Draft] IFRS S2 Climate-related Disclosures” prototypes. The Board plans to respond to the aspects of the documents that are relevant to its work as an accounting standard setter as part of the key activities for its next fiscal year.
Translation
The AcSB received an update on the activities undertaken related to translation requirements. No decisions were made.