The Accounting Standards Oversight Council (AcSOC) met on June 1-2, 2023. The meeting spanned two days and was hosted in person at the Chartered Professional Accountants of Canada Toronto offices and virtually on the Zoom platform. The second day was reserved for in-camera discussions.
The following notes relate to the first day, June 1.
Call to Order
Approval of Meeting Minutes from February 23-24, 2023
Chair’s Remarks
Performance Review Committee Report on the AcSB and PSAB
PSAB Chair Report
AcSB Chair Report
CSSB Update
Education Sessions
Closing Remarks
Adjournment
Call to Order
AcSOC Chair Lorraine Moore called the meeting to order at 10:30 a.m. (EST).
Approval of Meeting Minutes from February 23-24, 2023
AcSOC approved the February meeting minutes as written.
Chair’s Remarks
Ms. Moore shared a land acknowledgment then introduced a new format for the AcSOC reports.
Performance Review Committee Report on the AcSB and PSAB
Performance Review Committee Chair Clare Isman provided highlights of the Committee’s meeting held in May. Board-member self-assessments for the Accounting Standards Board (AcSB) and the Public Sector Accounting Board (PSAB) were provided to the Committee, which showed positive results. Board Chairs provided appropriate context when it came to constructive suggestions provided through the self-assessments, some of which are outlined in the briefing note provided to the AcSOC.
AcSOC reviewed the 2022-2023 Annual Reports in detail and discussed aligning future Performance Review Committee dates with the Boards’ work. The annual reports for AcSB and PSAB will be published on the FRAS Canada website following comments from the Council.
PSAB 2022-2023 Annual Report
PSAB Chair Clyde MacLellan and Director of Public Sector Accounting Standards Michael Puskaric presented the Board’s 2022-2023 Annual Report. The biggest accomplishment is the approval of the Conceptual Framework for Financial Reporting in the Public Sector and Reporting Model. Time was productively spent in engagement with interested and affected parties, enabling all users of the standards to feel that the outcome reflects their perspectives. Progress has been made on the International Strategy, with staff developing educational sessions on International and Public Sector Accounting Standards.
An AcSOC member asked about the longevity of the Conceptual Framework and Reporting Model. Mr. MacLellan estimates neither will need revising for at least seven years.
An AcSOC member asked whether external preparers or users provided feedback on PSAB’s annual performance assessment. Mr. MacLellan stated the Board consulted extensively with these groups through the engagement of standards; however, the current focus is on volunteer experiences. The Board will examine formalizing external user feedback in the future.
It was moved by Clare Isman, seconded by Sylvie Monette;
Be it resolved:
That the Accounting Standards Oversight Council confirms that the Public Sector Board met expectations for 2022-2023 and that the external Annual Report adequately reflects the Board’s 2022-2023 performance outcomes.
Unanimously carried.
AcSB 2022-2023 Annual Report
AcSB Chair Armand Capisciolto and Director of Accounting Standards Katharine Christopoulos presented the Board’s 2022-2023 Annual Report. Mr. Capisciolto recognized the staff for seamlessly managing the Chair transition over the last year. Progress was made on the Contributions – Revenue Recognition and Related Matters project. The Board advanced strategic work with Consultation Paper I, “Exploring Scalability in Canada.” Many inconsistent comments were related to virtual versus in-person meetings in the volunteer self-assessment results. Some topics lend better to in-person discussions rather than online. The Board is working on finding a balance that addresses budget limitations and environmental impacts in addition to effective and efficient meetings.
It was moved by Clare Isman, seconded by Erica Teklits;
Be it resolved:
That the Accounting Standards Oversight Council confirms that the Accounting Standards Board met expectations for 2022-2023 and that the external Annual Report adequately reflects the Board’s 2022-2023 performance outcomes.
Unanimously carried.
PSAB Chair Report
Mr. MacLellan provided an overview of PSAB’s activities and shared highlights of how projects are progressing for 2023-2024, which were included in the meeting materials. There have been no changes to the identified risks since the last AcSOC meeting in February.
AcSOC received an overview of the recruitment process for the Indigenous Advisory Council. The goal is to establish the Council in the fall, with a focus on PSAB work.
Staffing risk and budget related to staffing were discussed and will continue to be monitored.
A robust discussion took place on the engagement process for developing standards. AcSOC suggested engaging with rating agencies, not just users, to be strategic partners to assist in the universal adoption of standards.
AcSB Chair Report
Mr. Capisciolto presented the AcSB’s summer activities, including participation in academic conferences and international meetings. Online and in-person outreach sessions are planned. The Board will continue to monitor sustainability to ensure connectivity and interactions with financial reporting. Interested and affected parties also ask about sustainability during consultation on accounting topics. The Board plans to respond to the International Sustainability Standards’ (ISSB) agenda consultation, focusing on aspects relevant to financial reporting.
A group from Australia, Malaysia, and the UK are coming together to address sustainability topics related to financial reporting. The AcSB is monitoring how sustainability reporting may affect financial statements.
The consultation period for the Contributions project has begun, with extensive outreach and roundtables planned across Canada.
AcSOC discussed the increase in other national research and standards. The AcSB is contemplating research partnership mechanisms. A Council member suggested connecting with security regulators on funding for research and exploring federal government grants.
CSSB Update
Canadian Sustainability Standards Board (CSSB) Chair Charles-Antoine St-Jean provided an update on Board activities, which was included in the meeting materials. The Board will begin operations in July once it has reached quorum, with the full complement expected by the end of the summer.
The CSSB and begun contacting various interested and affected parties about the Board’s role and how it will work in the Canadian landscape. Additional work on developing the consultation agenda is underway, with four topics being considered:
- Diversity
- Human Capital
- Human Rights
- Integration between accounting and sustainability standards
A robust question period followed the presentation. Questions and discussion included the CSSB’s role outreach, the need to ingrain sustainability standards in the Canadian legal landscape, connectivity with other standards boards, and work streams including the Board’s role in contributing to the Canadian reconciliation agenda.
Education Sessions
Heather Taylor, the Chief Financial Officer and Treasurer for the City of Toronto, presented the City of Toronto’s environmental, social, and governance (ESG) journey. Katie Dunphy, Partner of KPMG’s ESG and Sustainability team, presented on emerging ESG trends.
Closing Remarks
Ms. Moore thanked all the presenters and observers for attending.
Adjournment
Having no other business, the public portion of the meeting was adjourned at 4:30 p.m.