As a result of the unprecedented challenges of COVID-19, the Accounting Standards Oversight Council (AcSOC) held a special meeting on March 26, 2020 to deal with issues arising from the Public Sector Accounting Board’s (PSAB) decision to postpone its March 26-27, 2020 meeting.
Chair’s Opening Remarks
AcSOC Chair Miville Tremblay thanked all attendees for joining this last-minute meeting to deal with a time sensitive matter for PSAB. He reminded the Council that in addition to advising the Boards on their strategic decisions, AcSOC also ensures the Boards follow due process in their standard-setting activities.
Postponement of PSAB’s March 2020 Meeting
Mr. Tremblay reminded members that the Council was provided with an opportunity to provide input into PSAB’s two International Strategy Consultation Papers in 2018 and 2019. The Council also received regular briefings on the robust consultations PSAB has conducted with its stakeholders. PSAB planned to make a decision on its International Strategy at its March 26-27, 2020 meeting.
Given the unprecedented challenges the Board members are facing as a result of COVID-19, many PSAB members indicated their inability to attend the Board’s March meeting. As the International Strategy is of key strategic importance, the Board agreed to defer PSAB’s meeting until Spring 2020 to ensure the opportunity for the Board to have an informed and robust discussion. PSAB deemed it most appropriate for the final International Strategy decision be made by its current members who participated in the Board’s discussions throughout the project’s lifetime.
To maintain the continuity of discussions, Charles-Antoine St-Jean, PSAB Chair, and Michael Puskaric, PSAB Director, recommended that AcSOC extend the terms of the following members to May 31, 2020:
- Andrew Newman, Partner, KPMG (Vice Chair)
- Bill Cox, Partner, BDO
- Clyde MacLellan, Assistant Auditor General of Canada
- Kim MacPherson, Auditor General of New Brunswick
Clyde MacLellan, Assistant Auditor General of Canada was reappointed to a three-year term and will assume the role of Vice-Chair on June 1, 2020.
Mr. St-Jean and Mr. Puskaric also recommended that AcSOC postpone the terms of the following incoming members to June 1, 2020:
- Martin Boucher, Partner, PWC
- Michelle Galipeau, Auditor General, City of Montreal
- C.J. James, Partner, KPMG
In response to a question, Mr. St-Jean said that he spoke with the current Board members and they are in support of this proposal.
AcSOC members indicated their support with the Board’s recommendation. However, they raised concern that two-month extensions of the members noted above may not be enough given the challenges presented by COVID-19.
The Council suggested that the term extensions end the day the International Strategy decision is made, but no later than June 30, 2020. The terms of the new incoming members would begin on the following day. The PSAB Chair and Director agreed with this suggestion.
The Council carried a motion to extend the terms of the following PSAB members until the day the decision on the International Strategy is made, but no later than June 30, 2020:
- Andrew Newman, Partner, KPMG (Vice Chair)
- Bill Cox, Partner, BDO
- Clyde MacLellan, Assistant Auditor General of Canada
- Kim MacPherson, Auditor General of New Brunswick
The Council also carried a motion to begin the terms of the following incoming members on the day following the International Strategy decision, but no later than July 1, 2020:
- Martin Boucher, Partner, PWC
- Michelle Galipeau, Auditor General, City of Montreal
- C.J. James, Partner, KPMG
All members were in favor of this motion with no objections and no abstentions.
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The Accounting Standards Oversight Council (AcSOC) is an independent, volunteer body established by the Canadian Institute of Chartered Accountants (CICA)* in 2000. It serves the public interest by overseeing and providing input on the activities of the Accounting Standards Board (AcSB), which sets financial reporting standards for profit-oriented enterprises and not-for-profit organizations, and the Public Sector Accounting Board (PSAB), which sets financial reporting standards for governments and their organizations. AcSOC’s responsibilities include appointing the AcSOC, AcSB and PSAB members. Reporting to the public and made up of representatives that include regulators, investors and other users, preparers and auditors of financial reports, AcSOC brings a broad perspective to complex issues facing standard setters in both the private and public sectors.
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*The CICA, CGA Canada and CMA Canada have since consolidated under the CPA Canada banner as the profession’s national body.