Highlights
The Accounting Standards Board (AcSB) proposes, subject to comments received following exposure, to incorporate amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures into Part I of the CPA Canada Handbook – Accounting.
This AcSB Exposure Draft reflects proposals made by the International Accounting Standards Board (IASB) that the AcSB intends to adopt, subject to deliberating comments received, as Canadian generally accepted accounting principles.
Comments are requested from individuals and organizations who agree with the Exposure Draft proposals as well as from those who do not. Comments are most helpful if they relate to a specific paragraph or group of paragraphs. Any comments that express disagreement with the proposals should clearly explain the problem and include a suggested alternative, supported by specific reasoning.
Comments received on the AcSB Exposure Draft will be available on the website shortly after the comment deadline unless confidentiality is requested. The request for confidentiality must be stated explicitly within the response.
IASB® Exposure Draft
The IASB recently issued the Exposure Draft, “Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures,” which is available on the IASB website at www.ifrs.org.
In developing the reduced disclosure requirements in the new IFRS Accounting Standard Subsidiaries without Public Accountability: Disclosures, the IASB considered the disclosure requirements in other IFRS Accounting Standards as at February 28, 2021. The IASB’s Exposure Draft proposes amendments to that standard for new or amended disclosure requirements added or amended in other IFRS Accounting Standards between February 28, 2021, and May 1, 2024. The Exposure Draft proposes amendments to these new or amended standards so that IFRS 19 will include only disclosure requirements consistent with its principles for developing reduced disclosure requirements.
The IASB’s Exposure Draft proposes amendments to IFRS 19 relating to:
- IFRS 18 Presentation and Disclosure in Financial Statements, including amendments introduced by Non-current Liabilities with Covenants;
- IAS 7 Statement of Cash Flows, as amended by Supplier Finance Arrangements;
- IAS 12 Income Taxes, as amended by International Tax Reform – Pillar Two Model Rules; and
- IAS 21 The Effects of Changes in Foreign Exchange Rates, as amended by Lack of Exchangeability.
The IASB is also asking for feedback on whether to reduce the disclosure requirements in the prospective IFRS Accounting Standard Regulatory Assets and Regulatory Liabilities.
The IASB’s Exposure Draft includes a Basis for Conclusions that is not part of this Exposure Draft. This material may provide useful information to interested and affected parties.
Comments Requested
The AcSB encourages Canadian stakeholders to respond to the IASB on its Exposure Draft. Specific questions on which the IASB would like input are provided in the Invitation to Comment in its Exposure Draft. The AcSB requests that comment letters be sent directly to the IASB with a copy to the AcSB.
The AcSB is not planning to respond to the IASB’s Exposure Draft. If you think the AcSB should respond, or you have any comments on the additional question below, you are encouraged to respond directly to the AcSB.
The IASB has developed the proposed amendments in accordance with its due process for application around the world. Assuming the Exposure Draft proposals are finalized and approved by the IASB in accordance with its due process, do you think that the proposals are appropriate for application in Canada? If not, please specify which aspects of the proposals, as well as what circumstances, make the accounting requirements proposed in the Exposure Draft inappropriate.