The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to develop narrow scope amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures.
Specifically, the project aims to clarify the requirements for assessing a financial asset’s contractual cash flow characteristics, as well as considering other matters related to the derecognition of financial liabilities and the disclosure requirements for certain equity investments.
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® Standards for publicly accountable enterprises.