Standard-setting Update – The Review of Standard Setting in Canada

We are cognizant that this is a busy time of year for our stakeholders but want to highlight the importance of the current consultation of the Independent Review Committee on Standard Setting.  

The Committee is continuing its review of the governance and structure for establishing Canadian financial reporting and assurance standards as well as what might be needed for the future, including sustainability standards.

Right now, the Committee is in consultation mode, working to ensure a breadth of diverse feedback is gathered on its Consultation Paper – out for comment until March 31, 2022. 

We feel it is important to encourage our stakeholders to engage in the consultation process with the Committee because of several key matters and recommendations it has made in its Consultation Paper: 

• the importance of independence and transparency of the standard-setting system; 
• overall governance and oversight framework of the Canadian standard-setting system, including its legal structure and funding mechanisms; 
• public interest and responsibilities to Indigenous peoples in the development of standards; 
• timeliness and responsiveness of the financial reporting and assurance standard-setting processes (including time to market considerations); and 
• establishing a Canadian sustainability standards board, with consideration of its governance and accountability framework.  

The recommendation to establish a Canadian sustainability standards board is outlined in more detail in the Consultation Paper, including such proposals as suggesting this board work alongside our existing standard-setting boards and liaise with the new ISSB, ensuring the Canadian perspective is part of international decision making – a familiar role to the AcSB, PSAB and AASB as we each work to adopt, endorse, or base Canadian standards on international ones. 

Take part in the Committee’s consultations

Like our own boards’ consultation processes, the Committee has prepared resources for you to better understand the key matters and recommendations in their Consultation Paper and is offering multiple opportunities for you to share your feedback. 

Resources:

• Short overview: Reach the Committee’s short overview that breaks down the fundamentals of who they are, what they do, and what they’re thinking. 
• Webinars: Watch one of the Committee’s webinars, which includes an overview webinar on the Committee’s work to date, and their sustainability reporting webinar for a more detailed look into their recommendation to establish a Canadian sustainability standards board. 

Share your feedback:

• Roundtables: Take part in one of the Committee’s upcoming roundtable discussions.
• Respond: Comment on their Consultation Paper via the online forum they’re hosting on our community platform, Connect.FRASCanada.ca, or submit a comment letter. 

The quality of financial reporting and assurance standards is determined by the input received. This same notion can be applied to the work the Committee is undertaking – so we encourage you to play a part in the future of standard setting in Canada and respond to the Committee this month.  

Stay safe.