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
COVID-19 Disclosure Review
The AcSB discussed an analysis of disclosures related to COVID-19, observed in a sample of annual and interim reports of Canadian publicly traded companies. The Board considered this information to better understand where additional COVID-19 resources are needed to support relevant financial reporting in the current environment, and to identify any potential areas for improvement in accounting standards. The Board directed staff to update this analysis in 2021 when more annual reports are available, and to monitor the environment for any special events that may warrant an earlier update.
Goodwill and Impairment
The AcSB began discussing the key issues to include in its response letter to the International Accounting Standards Board (IASB’s) Discussion Paper, “Business Combinations—Disclosures, Goodwill and Impairment.” As part of the discussion, the Board considered stakeholder feedback obtained to date through its outreach on this topic. The Board will consider the results of remaining stakeholder outreach and discuss a draft of its response letter at its December meeting.
The AcSB encourages stakeholders to share their views on the Discussion Paper by submitting their response letters to the IASB by December 31, 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 by November 30, 2020, to allow the Board adequate time to consider the feedback in its response letter.
Accounting Standards for Not-for-Profit Organizations
Combinations
The AcSB completed its deliberations on stakeholder comments on the Exposure Draft “Combinations – Initial Measurements and Related Disclosures .” The Board considered the Not-for-Profit Advisory Committee’s advice, and tentatively decided:
- that for acquisitions, the difference between consideration transferred and the net assets acquired is recognized in the statement of net assets instead of the statement of operations; and
- to clarify aspects of the illustrative examples.
The AcSB also finalized the transition provisions.
The AcSB approved the issuance of the final standard, subject to final drafting and a written ballot. The Board plans to issue the final standard in March 2021.
Due Process
Board Advisory Committees
The AcSB received feedback on the October 2020 meeting of its Not-for-Profit Advisory Committee, which included discussions on the accounting for Cloud Computing Arrangements and Combinations projects.
Sustainability Reporting
The AcSB received an overview of the IFRS Foundation Trustees’ “Consultation Paper on Sustainability Reporting.” The Consultation Paper assesses the demand for global sustainability standards and, if the demand for a global approach is strong, assesses the extent to which the IFRS Foundation might contribute to the development of such standards.
The AcSB decided that it will submit a response to the Consultation Paper, given its continued focus on producing accounting standards that support relevant financial reporting. The AcSB encourages interested stakeholders to submit their response to the IFRS Foundation by December 31, 2020.