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® Accounting Standards
IFRS 15 Post-implementation Review
The AcSB discussed its draft response to the International Accounting Standards Board (IASB) Request for Information (RFI), “Post-implementation Review of IFRS 15 Revenue from Contracts with Customers” and provided staff with comments to incorporate into the final letter. Overall, the Board thinks the core principle and supporting five-step revenue recognition model in IFRS 15 are working as intended for contracts with customers within the scope of IFRS 15. The Board decided to highlight the importance of IFRS 15 remaining converged with Topic 606 in US GAAP and some application issues that may indicate a need for clarification to the requirements. In the case of the principal versus agent assessment, the Board decided to specifically highlight a need for standard setting to improve the application of this area in practice. The Board approved its response for submission to the IASB, subject to drafting changes.
IFRS® Accounting Standards Discussion Group
The AcSB received an update on the September 19, 2023, IFRS Accounting Standards Discussion Group meeting.
At that meeting, the Group discussed the following topics:
- Accounting for the Development of Carbon Credits by a Renewable Energy Generator;
- Unit of Account for Lease Modification Accounting;
- Accounting for Equity Instruments in a Shares-for-debt Transaction; and
- IAS 1 Presentation of Financial Statements: Classification of Liabilities with Covenants when an Entity is Granted a Waiver or Grace Period.
The Group also held a session to discuss possible improvements to meeting operations. The AcSB discussed recommendations from this open session.
Relevance of Financial Reporting
Scaling the Standards
The AcSB continued its discussions on its “Consultation Paper I – Exploring Scalability in Canada,” which closed for comment on July 31, 2023.
The AcSB decided to continue conducting research and targeted consultation on potential solutions to add tiering within existing Part II and Part III frameworks in the CPA Canada Handbook – Accounting and a new framework for small entities. The Board will seek feedback on these potential solutions at its October 2023 Small Practitioners Working Group meeting and at its November 2023 Not-for-Profit Advisory Committee and Private Enterprise Advisory Committee meetings.
The AcSB was not asked to make any final decisions regarding these scaling options and will discuss next steps for this project at the Board’s December 2023 meeting.
Due Process
AcSB’s Advisory Committees and Working Groups
Crypto-Asset Working Group
The AcSB received an update on the October 5, 2023, Crypto-Asset Working Group meeting. At this meeting, the Group discussed the Board’s research activities associated with intangible assets, including crypto assets, and current application issues related to revenue recognition from crypto staking arrangements. The Board considered the application of IFRS 15 Revenue from Contracts with Customers to staking arrangements executed using smart contracts on the blockchain, where traditional contractual elements, including customer identification and enforceability, can differ from conventional contracts. The discussions also covered other elements of the IFRS 15 revenue recognition model, including the identification of performance obligations, the measurement and allocation of the transaction price, and the recognition of revenue under delegated and validator staking arrangements.
User Advisory Committee
The AcSB received an update on the October 12, 2023, User Advisory Committee meeting. At this meeting, the Committee discussed the difference between physical and virtual power purchase arrangements and the impact on their accounting treatment. The Committee shared their views on accounting for climate-related risks in the financial statements, highlighting the importance of obtaining qualitative information about how a company addresses those risks as opposed to quantitative estimates. In addition, the Committee discussed the preliminary findings of the Board’s research project on cash flow reporting. The Committee noted the importance of this statement for users as well as the need and the challenges to standardize certain metrics. The Committee also received an update on the IASB’s Equity Method project, the Annual Improvements to IFRS Accounting Standards project, and the Board’s research on intangible assets.
Academic Advisory Committee
The AcSB received an update on the October 13, 2023, Academic Advisory Committee (AAC) meeting. At this meeting, the Committee discussed CSSA 5000 General Requirements for Sustainability Assurance Engagements. The Committee received an update on the Board’s research projects on carbon pricing, cash flow reporting and intangible assets, as well as on different academic research projects in which Committee members are involved. The Committee also held a workshop session to identify opportunities to better engage the AAC and academics in the standard-setting process.
Agriculture Advisory Group
The AcSB received an update on the October 23, 2023, Agriculture Advisory Group meeting. At this meeting, the Group discussed Productive Biological Assets Managed on a Collective Basis and led an open session on the application of Section 3041, Agriculture. The Board encourages interested and affected parties to submit application issues to the Agriculture Advisory Group.
Due Process Compliance
The AcSB approved a report for the Accounting Standards Oversight Council on its due process compliance.