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 arising from an inconsistency in wording between paragraph B6 of IFRS 1 First-time Adoption of International Financial Reporting Standards and requirements for hedge accounting in IFRS 9 Financial Instruments. The objective of this project is to add cross-references in paragraphs B5-B6 to qualifying criteria for hedge accounting in paragraph 6.4.1 of IFRS 9, as well as align the wording in paragraph B6 with IFRS 9.
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 GAAP in accordance with the AcSB’s strategy of adopting IFRS Accounting Standards for publicly accountable enterprises.