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 interests and affected parties and can be reached anytime through our online form.
IFRS® Accounting Standards
Climate-related and Other Uncertainties in the Financial Statements
The AcSB discussed its draft response to the International Accounting Standards Board’s (IASB) Exposure Draft, “Climate-related and Other Uncertainties in the Financial Statements.” The IASB’s Exposure Draft was issued on July 31, 2024, and comments are due November 28, 2024. In developing its response, the AcSB considered feedback received from its outreach with 158 interested and affected parties, including users, preparers, practitioners, and academics. Overall, the AcSB is supportive of the IASB proposing illustrative examples to improve the reporting of the effects of climate-related and other uncertainties in the financial statements. The AcSB decided to recommend improvements to avoid boilerplate disclosures and to ensure that any disclosures suggested through the examples are consistent with:
- the boundaries of the financial statements; and
- the concepts of materiality and the primary users of financial statements, as per the Conceptual Framework for Financial Reporting.
The AcSB approved its response for submission to the IASB, subject to drafting changes.
Equity Method
The AcSB discussed its plan to respond to the IASB’s Exposure Draft, “Equity Method of Accounting.” The IASB’s Exposure Draft was issued in September 2024, with a 120-day comment period. The AcSB approved a more limited outreach plan, which includes gathering feedback from advisory committees. The AcSB decided to use a limited outreach plan, as the IASB’s Exposure Draft proposals are narrow in nature.
Standards for Private Enterprises
Related Party Combinations
The AcSB continued discussing and considered feedback from its Private Enterprise Advisory Committee and Small Practitioners Working Group on narrow-scope proposals to be included in an exposure draft. The narrow-scope proposals address an application question from practice considered under the Board’s Guidance Framework regarding the amendments issued in September 2023 to Section 3840, Related Party Transactions, in Part II of the CPA Canada Handbook – Accounting Standards for Private Enterprises (ASPE).
In September 2024, the AcSB tentatively decided on a narrow-scope amendment to paragraph 3840.44(b) proposing that when carrying values are used and the combination is accounted for prospectively, an option to account for the combined enterprise as either a new entity with no comparatives or as a continuation of one of the combining entities with comparatives of that entity would be allowed. The proposal would not amend the option to account for the combination retrospectively for the entire period in which the combination occurred and for all prior periods, and this option would continue to be available.
The AcSB considered feedback from Private Enterprise Advisory Committee and the Small Practitioners Working Group and decided to propose further edits to improve the understandability of the proposals.
The AcSB also discussed and considered feedback from Private Enterprise Advisory Committee and Small Practitioners Working Group on the proposed effective date and transition guidance. The Board decided to propose an effective date of January 1, 2026, with earlier application available. The Board discussed that a later effective date may not be needed, as the proposals are expected to make the existing guidance easier to apply and therefore enterprises may want to adopt the proposals as soon as they are available. The Board also decided to propose that the amendments be applied prospectively to be consistent with the transition guidance for the Related Party Transactions amendments issued in September 2023, and because the proposals are not expected to change how a combination was accounted for by enterprises that early adopted those amendments.
The AcSB gave permission to proceed to the final balloting stage. Once complete, the Board expects to issue the exposure draft in December 2024 with a 60-day comment period.
Due Process
AcSB’s Annual Plan
The AcSB received its second quarterly update on activities relating to its 2024-25 Annual Plan, including identifying any potential project-related risks and mitigating factors. The Board discussed priorities for the remainder of the year and reiterated the importance of maintaining flexibility in its work plan to respond to emerging financial reporting matters and to address application issues through the Guidance Framework.
The AcSB decided to continue with its planned activities and will continue to monitor whether updates are required to its Annual Plan. The Board will begin discussing its 2025-26 Annual Plan at its December 2024 meeting.
AcSB’s Advisory Committees and Working Groups
Private Enterprise Advisory Committee
The AcSB received an update on the October 8, 2024, Private Enterprise Advisory Committee meeting. At this meeting, the Committee discussed Financial Statement Concepts, Related Party Combinations, Amendments to Frameworks in Other Jurisdictions, the ASPE Climate Awareness project, and more. Please see the Private Enterprise Advisory Committee Meeting Notes – October 8, 2024, for details.
Small Practitioners Working Group
The AcSB received an update on the October 10, 2024, Small Practitioners Working Group meeting. At this meeting, the Group discussed Financial Statement Concepts, Related Party Combinations, the Detailed Review of ASPE, Agriculture, and more. The Group also discussed a draft of revised Terms of Reference and Statement of Operating Procedures, which will be adopted on transition from a Working Group to an Advisory Committee.