Message from the Chairs
We, the Chairs of the Accounting Standards Oversight Council (AcSOC), Auditing and Assurance Standards Oversight Council (AASOC), and the Canadian Sustainability Standards Board (CSSB) Implementation Committee, proudly present this combined annual report for the 15-month period ending June 30, 2024.
This period marks a major milestone as we prepare to transition to the new unified Reporting & Assurance Standards Oversight Council. This transition represents a strategic evolution aimed at strengthening the oversight of reporting and assurance standard setting in Canada. This will ensure a more streamlined approach that will be important to dramatically increase connectivity between the standard-setting boards. The change emphasizes developing and maintaining standards with the highest integrity, transparency, and public accountability.
We want to express our deepest gratitude to all the volunteers who have generously contributed their time, expertise, and passion to the missions of AcSOC, AASOC, and the CSSB Implementation Committee. Many exceptional individuals are concluding their terms to make way for the new structure. Their invaluable contributions have been fundamental to our success and have laid a solid foundation for the future.
As we approach the end of a significant year and look toward the future under the guidance of the new unified Oversight Council, we reconfirm our commitment to maintaining high standards of oversight.
We sincerely thank you for your valuable contributions to this journey and we eagerly invite you to continue supporting us as we enter this new phase. Our hard work will ensure Canadian standard setting continues to reflect transparency, integrity, relevance, and the public interest.
Kevin Nye, MBA – President, KGN Risk Advisory
Outgoing AASOC Chair and Co-chair of the CSSB Implementation Committee
Lorraine Moore, MBA, ICD.D – President, Accelerate Success
Outgoing AcSOC Chair and Co-chair of the CSSB Implementation Committee
IRCSS Recommendation Implementation
This year, we progressed implementation of the recommendations from the Independent Review Committee on Standard Setting in Canada (IRCSS). These recommendations have significantly enhanced our operational efficiency and ensure that our standard setting activities align with international best practices.
In May, a joint working group consisting of members from both AcSOC and AASOC was established to evaluate and deliberate on these recommendations. We held joint council meetings in September and November to discuss and approve the proposed recommendations. This approval included support for establishing Standardsco, an independent legal entity to enhance independence of Canadian standard-setting activities. The councils also supported the creation of a joint committee to recruit the initial members of the Standardsco Board with assistance from an external service provider.
Effectiveness Review
We are dedicated to continuously improving our operations, which is why we conducted a thorough review of our oversight practices to ensure their effectiveness, as recommended by the IRCSS. As a result of this review, we have implemented several enhancements, one of which is the transition to a single oversight council as highlighted above. This change strengthens our processes and brings them in line with modern governance practices. By consolidating oversight functions under a single council and placing greater emphasis on high-impact areas, we are prioritizing transparency and accountability. Our focus remains on ensuring standards setting that serves the public interest.
Board Annual Performance
Accounting Standards Board
The Accounting Standards Board (AcSB) enhanced its outreach strategy to better educate the community before seeking feedback. This strategy was crucial in gathering significant feedback on Consultation Paper I, “Exploring Scalability in Canada,” including from the newly created Small Practitioners Working Group.
The AcSB also conducted extensive outreach on the Exposure Draft, “Contributions – Revenue Recognition and Related Matters.” Based on the feedback received, the Board decided to continue to allow an accounting policy choice for recognizing contributions, highlighting the critical role of input received in shaping standards.
The AcSB also exercised its international influence by responding to Exposure Drafts and requests for information issued by the International Accounting Standards Board. The responses integrated insights from several outreach events, including virtual roundtables and panel discussions, to present Canadians’ views on issues.
For more details, refer to the AcSB Annual Report 2023-2024.
Auditing and Assurance Standards Board
The Auditing and Assurance Standards Board (AASB) engaged in thorough consultations and provided feedback to the International Auditing and Assurance Standards Board (IAASB) on key projects, including Audit Evidence, Going Concern, and Sustainability Assurance.
The AASB also recently completed its outreach on the proposed deferral of the IAASB’s public interest entity narrow-scope amendments. A key focus this year was on sustainability assurance, highlighted by the release of Exposure Draft, “CSSA 5000, General Requirements for Sustainability Assurance Engagements.” The feedback received is instrumental in ensuring that Canadian perspectives are effectively incorporated into the IAASB’s ongoing development of this standard, as well as in evaluating necessary adaptations for its implementation within Canada.
For more details, refer to the AASB Annual Report 2023-2024.
Canadian Sustainability Standards Board
The CSSB significantly advanced sustainability disclosure standards in Canada this year. Now fully operational, the CSSB is actively integrating international sustainability standards with considerations unique to Canadians. This ensures standards are globally relevant yet tailored to meet the needs of Canadian entities.
The CSSB’s major achievement this year was undertaking its consultation on the Exposure Drafts, “Canadian Sustainability Disclosure Standard (CSDS) 1, General Requirements for Disclosure of Sustainability-related Financial Information” and “CSDS 2, Climate-related Disclosures.”
The first annual report for the CSSB will be published next year following a full year of operation.
Public Sector Accounting Board
The Public Sector Accounting Board (PSAB) focused on meeting current demands and anticipating future needs. A notable initiative this year was forming the Indigenous Advisory Group, tasked with guiding the Board on enhancing Public Sector Accounting Standards to better serve Indigenous Peoples and their communities.
As part of its Government Not-for-Profit (GNFP) Strategy, PSAB issued Exposure Draft, “Tangible Assets, Proposed Amendments to Section PS 3150,” proposing the integration of the PS 4200 series of standards and exploring potential customizations. The Board also continues to review the extensive feedback received to the Exposure Draft, “Exposure Draft – Employee Benefits, Proposed Section 3251.”
At the same time, PSAB is advancing its International Strategy by enhancing the visibility of the International Public Sector Accounting Standards Board’s (IPSASB) activities, creating a Technical Advisory Group to review IPSASB consultation documents, and initiating a project on Intangible Assets that adapts IPSAS 31 principles.
For more details, refer to the PSAB Annual Report 2023-2024.
Members
Accounting Standards Oversight Council
Front row L-R: Christine Wiedman, Clare Isman, George Addy (Vice Chair), Lorraine Moore (Chair), Earl Davis, Sylvie Monette
Back row L-R: Grant Vingoe, Richard Talbot, Stephanie Bowman, Erica Teklits, Jocelyn Patenaude, Guylaine Leclerc, Shelley Brown, Terry Goodtrack, Susan Campbell, David Noel
Absent: John McKenzie, Ken Leung
Auditing and Assurance Standards Oversight Council
Front row L-R: Ian Bandeen, Kevin Nye (AASOC Chair), Magatte Ndiaye
Back row L-R: Ken Leung, Paul Winton, Beili Wong, Fred Pries (Vice Chair), Michael Tambosso
Absent: Carla-Marie Hait, Don Newell, Donna Bovolaneas, Gary Hannaford, Janet Grove, Neil Sinclair, Stacy Hammett
CSSB Implementation Committee
Not pictured: Lorraine Moore (Co-Chair), Kevin Nye (Co-Chair), George Addy, Donna Bovolaneas, Elliott Cappell, Katie Dunphy, Deirdre Henne, Michael Jacobs, Sarah Keyes, Jon Mitchell, Fred Pries, Susan Todd, Miville Tremblay, Grant Vingoe