Chair Message
Over the past year, the Accounting Standards Oversight Council (AcSOC) has continued to support its mission: to serve the public interest by overseeing and providing input to the activities of the Accounting Standards Board (AcSB) and the Public Sector Accounting Board (PSAB).
In a time of disruption and volatility, AcSOC has participated in initiatives that will shape the future of standard-setting in Canada. As the pace of progress in sustainability disclosures continues to accelerate, we approved, mutually with the Auditing and Assurance Standards Oversight Council (AASOC), the formation of the Canadian Sustainability Standards Board (CSSB). This followed an early recommendation put forward by the Independent Review Committee on Standard Setting in Canada (IRCSS). To develop the necessary groundwork for the CSSB and support the significant work required to establish a new board, we created a joint implementation committee with AASOC. After year-end, we celebrated the announcement of the inaugural Chair and three founding members of the CSSB. Our sustainability-related activities also included responding (with AASOC) to the International Sustainability Standards Board’s (ISSB) "General Sustainability-related Disclosures" and "Climate-related Disclosures" Exposure Drafts.
On March 1, 2023, the IRCSS issued its final report, which includes 26 reasoned, actionable recommendations for a standard-setting structure that will operate with integrity and deliver standards that are in the public interest and relevant and responsive to the needs of affected and impacted parties. Implementation of some recommendations is already underway, and we are committed to moving forward quickly with others. A working group has been established with AASOC and CPA Canada to help with the implementation. We also initiated a joint effectiveness review of the current Oversight Councils, aiming to streamline and harmonize current oversight activities and processes. All these timely activities will help define a structure and oversight that provides a solid foundation now and for the future. We look forward to sharing joint Council feedback in the Fall of 2023.
In September 2022, Armand Capisciolto started as interim AcSB Chair, succeeding Linda Mezon-Hutter, who joined the International Accounting Standards Board (IASB). Armand is now the permanent Chair, effective May 1, 2023. I want to express my gratitude to Linda for her outstanding leadership of the AcSB since 2013. She was instrumental in strengthening Canada's standard-setting reputation and committed to establishing high-quality standards globally and in Canada. In his new role, Armand has already spearheaded critical initiatives, including leading the issuance of two AcSB documents related to AcSB's 2022-2027 Strategic Plan that are now out for public comment. These include “Consultation Paper I – Exploring Scalability in Canada” and the “Contributions – Revenue Recognition and Related Matters” Exposure Draft.
Clyde MacLellan continued as Chair of PSAB, effectively leading the Board through projects related to its 2022-2027 Strategic Plan. PSAB achieved two major milestones during the year: namely, the approval of the Conceptual Framework and the Reporting Model, both of which provide a solid groundwork for financial reporting in the public sector.
As of March 31, 2023, Annie Giraudou and Tom Linsmeier have concluded their terms with AcSOC. Their invaluable contributions have been greatly appreciated and will be missed. The influence that Council members wield in standard-setting cannot be overstated, as their expertise, time, and insights are crucial to advancing the public interest. I extend my appreciation to the dedicated staff and volunteers working collaboratively to lead in this space. I invite you to witness our processes in action by attending our Oversight Council meetings and look forward to a productive 2023-2024.
Lorraine Moore,
Chair of AcSOC
Performance Reviews
We monitor and evaluate the performance of both the AcSB and PSAB to ensure they consider the public interest and the needs of all stakeholders in standard setting. We ensure due process is followed by receiving regular reports from the Boards and reviewing the effectiveness of their processes. We also encourage the public to engage with the standard-setting process by attending discussion group meetings and webinars online.
Our Performance Review Committee (PRC) monitors and evaluates the performance of the AcSB and PSAB on an annual basis. The Committee provided input into the Boards' new Strategic Plans, Annual Plans for 2022-2023, and 2022–2023 Performance Reports. Lastly, the PRC has free-flowing dialogues with Board Chairs on pressing issues that the Boards are managing.
AcSB
We agree that the AcSB had a successful year, with the following key achievements:
- Consulted interested and affected parties on high priority Contributions project
- Completed Cloud Computing Arrangements and Pension Plans projects, with final pronouncements issued at the end of 2022
- Actively participated in the International Accounting Standards Board’s (IASB) standard-setting process and exchanged views on topics of mutual interest with other national standard setters
PSAB
We agree that PSAB met the objectives outlined in its revised 2022-2023 Annual Plan, with the following key achievements: