The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) Annual Improvements to IFRS® Accounting Standards – Volume 11 project, to produce a collection of unrelated minor amendments to IFRS® Accounting Standards.
There is currently potential confusion in applying paragraph 37 of IAS 7 Statement of Cash Flows arising from the use of the term ‘cost method’ that is no longer defined in IFRS Accounting Standards. The objective of this project is to avoid potential confusion by replacing the term ‘cost method’ with ‘at cost’ in this paragraph.
The AcSB’s due process includes ensuring that Canadian entities’ financial reporting needs are considered by the IASB and issuing the AcSB’s own exposure draft on each IASB proposal. Subject to the responses to the AcSB’s exposure draft on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the amendments will be incorporated into Canadian generally accepted accounting principles (GAAP) in accordance with the AcSB’s strategy of adopting IFRS Accounting Standards for publicly accountable enterprises.