The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) annual improvements 2018-2020 cycle, to produce a collection of unrelated minor amendments to IFRS® Standards.
Currently, IAS 41 Agriculture requires an entity to exclude taxation cash flows from its discounted cash flow model, in determining the fair value of its biological assets.
The objective of this improvement is to ensure a consistent valuation approach, by permitting an entity to use post-tax cash flows and a post-tax rate to discount those cash flows. This improvement would amend IAS 41, to remove the requirement to exclude taxation cash flows when calculating the fair value of its biological assets.
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. After considering the responses to the AcSB’s exposure draft and the relevance of the IASB’s proposals to the Canadian market, 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.