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
Insurance
The AcSB discussed its draft response letter to the International Accounting Standards Board’s (IASB) Exposure Draft, “Initial Application of IFRS 17 and IFRS 9—Comparative Information (Proposed amendment to IFRS 17).” The Board considered feedback from its Insurance Transition Resource Group on the proposal and provided staff with comments to incorporate into the final letter. The Board encourages stakeholders to share their views on the Exposure Draft by submitting their response letters to the IASB by September 27, 2021, with a copy to the AcSB.
Third Agenda Consultation
The AcSB discussed its draft response letter to the IASB’s Request for Information, “Third Agenda Consultation,” and provided staff with comments to incorporate into the final letter. The Board encourages stakeholders to share their views on the Request for Information by submitting their response letters to the IASB by September 27, 2021, with a copy to the AcSB.
Financial Accounting Standards Board (FASB)
FASB Agenda Consultation
The AcSB discussed its draft response letter to the FASB’s Invitation to Comment, Agenda Consultation, and provided staff with comments to incorporate into the final letter. The Board’s response letter was sent to the FASB by the September 22, 2021, deadline.
Standards for Private Enterprises and Not-for-Profit Organizations
Cloud Computing Arrangements
The AcSB continued its discussion of the issues regarding the customer’s accounting for fees paid in a cloud computing arrangement and the related implementation costs. The Board discussed a proposal that involves:
- clarifying the application of existing guidance;
- permitting entities to apply a simplified approach to account for cloud computing arrangements; and
- capitalizing directly attributable implementation costs when the arrangement is a software service.
The simplified approach is aimed at permitting entities to expense the amounts in a cloud computing arrangement without having to perform a complex analysis. The Board tentatively decided to proceed with the simplified approach but directed the staff to consider how the approach could be applied in a manner that alleviates the current complexity in practice.
The AcSB also tentatively decided to proceed with developing guidance for entities to capitalize directly attributable implementation costs in a situation when the cloud computing arrangement is a software service. The Board began discussing how such costs would be presented in the financial statements.
The AcSB will continue its discussions on developing the proposals, including considering presentation, disclosure, and transitional provisions, at its October 2021 meeting.
Leases
The AcSB deliberated stakeholders’ feedback on the Exposure Draft, “Leases.” Respondents supported the proposals in the Exposure Draft. The Board decided, subject to written ballot, to extend the scope exemption for COVID-19-related rent concessions by one year to December 31, 2022.
The AcSB recognizes the importance of this topic and is currently in the process of balloting. The Board plans to issue the final amendments on December 1, 2021. The amendments will apply to annual financial statements ending on or after December 31, 2021, with earlier application permitted, including in financial statements not yet authorized for issue.
Standards for Not-for-Profit Organizations
Contributions – Revenue Recognition and Related Matters
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 and roundtables on the topic of special types of contributions, including capital asset contributions, endowments and contributed materials and services.
The Not-for-Profit Advisory Committee will discuss the topic of special types of contributions at its meeting in October 2021, and the Board will consider this feedback at its meeting in November 2021.
Standards for Pension Plans
The AcSB considered a revised project proposal that included advice from its Pension Plan Working Group.
The AcSB approved the project proposal to address:
- determining whether a statement of changes in pension obligations for defined contribution plans is required;
- determining the split or amalgamation date for pension plans;
- accounting for guaranteed annuity contracts (commonly known as “buy-in and buy-out” contracts);
- presentation of combination pension plans; and
- risk disclosures for investments in master trusts.
The AcSB recognizes the importance of addressing this topic on a timely basis and plans to issue a document for comment no later than March 2022.
Relevance of Financial Reporting
AcSB’s Framework for Reporting Performance Measures
The AcSB discussed a revised draft of its Framework for Reporting Performance Measures. Limited updates to the first edition issued in 2018 are being made in light of recent changes in the Board’s operating environment and the issuance in May 2021 by the Canadian Security Administrator of National Instrument 52-112, Non-GAAP and Other Financial Measures Disclosure Companion Policy and Related Consequential Amendments. The Board approved the communications activities that will accompany the revised first edition of the Framework for Reporting Performance Measures. The Board plans to issue the revised first edition in October 2021.
Due Process
AcSB’s Advisory Committee
Private Enterprise Advisory Committee
The AcSB received feedback on the discussions at the recent meeting of its Private Enterprise Advisory Committee. Topics discussed at the meeting on September 9, 2021, included the AcSB’s 2022-2027 Draft Strategic Plan and COVID-19-related financial reporting issues.
Due Process Compliance
The AcSB approved a report to the Accounting Oversight Council on the Board’s compliance with due process.
Due Process Manual
The AcSB discussed a revised draft of its Due Process Manual, which included changes to clarify certain processes and better support the Board in responding to stakeholder needs on a timely basis. Specifically, the changes relate to:
- the due process for Accounting Guidelines;
- the process for when a Board member dissents on issuing a consultation paper, an exposure draft, a new standard or amendment; and
- the length of the comment period for exposure drafts.
The AcSB provided feedback to staff on the draft changes and will consider a revised draft of the Due Process Manual at its meeting in November 2021.