The Accounting Standards Oversight Council (AcSOC) met virtually on February 27, 2024.The following notes relate to the public session.
Call to Order
AcSOC Chair Lorraine Moorecalled the meeting to order at 10:30 a.m. (EST).
Approval of Meeting Minutes from November 14, 2023
Minor amendments to the attendance list were made. The minutes were approved as amended.
Chair’s Remarks
Ms. Moore shared a land acknowledgment and acknowledged that today’s meeting was Christine Wiedman’s final one after serving on AcSOC for seven years.
Performance Review Committee Update
Performance Review Committee Chair Clare Ismanprovided a high-level overview of the Committee’s February 7 meeting. The Committee met to review the AcSB’s and the PSAB’s draft Annual Plans for the operating year commencing April 1, 2024.
The Performance Review Committee’s primary role is to compare the Board’s performance against the current operating plan, assess the development of the Board’s annual plan, and monitor that against the Board’s five-year strategic plan. The Committee reviewed the AcSB’s and PSAB’s internal plans and confirmed alignment and consistency with the external Annual Plans. The Committee made suggestions to bring additional clarity and information to the internal plans. The Committee confirmed that both draft plans provide a suitable basis to evaluate the Boards’ performances for the next fiscal year.
Ms. Moore reminded the AcSOC that the Boards’ performances will be managed directly by the new single Oversight Council rather than a Performance Review Committee. Committee members were recognized and thanked for their work.
PSAB Chair Report
PSAB Vice-Chair Scott Munro presented the Chair's update on behalf of Board Chair Clyde MacLellan and Director, Public Sector Accounting, Michael Puskaric.
Based on the current year’s Annual Plan, PSAB is on track to meet its objectives. The progress of the Board’s priorities, including the Indigenous Engagement Strategy and the International Strategy, along with key files, public interest considerations, and governance and operations items, were reviewed at a high level.
AcSOC asked if there were any concerns related to establishing the Indigenous Advisory Group. Mr. Munro stated that activating the Group has taken longer than anticipated. However, the first meeting is booked for March 25 and will include a presentation from an Indigenous governance expert. The Council asked about the key criteria for re-exposing proposed Section PS 3250, Employee Benefits. The Board will look at the changes holistically and consider if they are substantive enough to warrant re-exposure. There were no reportable departures from due process.
PSAB 2024-2025 Annual Plan
The 2024-2025 Annual Plan is the third year of PSAB implementing its 2022-2027 Strategic Plan, and it continues to advance the strategic initiatives of the Indigenous Engagement and InternationalStrategiesand key technical projects such as Employee Benefits, Government Not-fFor-Profit Capital Assets,and Intangible Assets. The Annual Plan assumes a re-exposure of the Employee Benefitsproject. Resources have been set aside for this project.The Board continues to monitor risks. The risk of staff being ineffective has been lowered from high to medium because of increased certainty of the operating model and level of stability post-COVID.
AcSOC asked about the Indigenous Advisory Group’s role and how it may evolve over time. Mr. Munro stated that the Group will identify issues and topics for the Board to be aware of and will work with the Public Sector Accounting Discussion Group Chair to avoid overlap of mandate or scope. The Group draws from a historically underserved community and will provide knowledge and guidance to the Board on issues and topics impacting Indigenous communities that haven’t been addressed before. The Group will assist with outreach and connecting with Indigenous communities and governments nationally. The Group’s membership includes a broad geographic representation.
PSAB will review and approve the final drafts of the 2024-2025 internal and external Annual Plans on March 26-27, 2024. A summary Annual Planwill be posted online at the end of March.
AcSB Chair Report
AcSB Chair Armand Capisciolto provided a high-level update on the Board’s activities, including domestic and international projects and research activities. The Financial Instruments with Characteristics of Equity project has more implications for Canadian entities than other jurisdictions and brings significant risk. The Board is working on outreach to ensure Canadian issues are heard by the International Accounting Standards Board (IASB).
AcSOC noted that the risk and work effort for the Primary Financial Statements project changed from low to moderate. This project's results impact every entity as they change the statement of comprehensive income for every entity. In the period between the exposure and the finalization of the standard, the AcSB anticipates more education-related activity to ensure people are aware of the change.
The AcSB continues to focus on connections between financial and sustainability reporting and is monitoring the IASB’s and International Sustainability Standards Board’s joint meetings. Additional outreach on the Contributions project has been done to better understand the mixed feedback. Decisions on a possible re-exposure draft are anticipated at the March Board meeting. Contributions will be taking a lot of the Board’s time over the next year.
In January 2024, the AcSB completed its strategic research project on Scaling the Standards. The Board then initiated a new research project related to Parts II and III of the CPA Canada Handbook – Accounting. This project aims to perform a detailed review of the Accounting Standards for Private Enterprises. The goal is to identify the most complex requirements to apply and suggest practical solutions to make the standards more accessible to all entities. This work is related to the Evaluating the Preface project.
This fiscal year, a guidance framework will be developed to address the need for increased guidance regarding emerging issues and application issues in Parts II and III of the Handbook.
AcSB 2024-2025 Annual Plan
The AcSB Chair’s report notes significant international and domestic projects for the next year. In prior years, the Board had a cushion as part of the Annual Plan to deal with emerging issues or unplanned items. This year, if there are emerging issues or changes in the staff complement, the Board will have to decide which projects to slow down or stop.
AcSOC asked which projects are the highest priority. Mr. Capisciolto replied that international projects would be prioritized, however, there may be projects that have less of an impact on the Canadian market that could have a soft touch. The Subsequent Measurement of Goodwill and Intangible Assets project was identified as a domestic priority.
AcSOC asked about staffing retention. Mr. Capisciolto stated that losing staff is always a risk, however, the learning curve for new staff in the last couple of years has been shorter than expected. The Council encouraged the AcSB to continue being transparent with decisions and providing guidance on standards. These topics should be discussed at the new single Oversight council.
The public session of the meeting concluded at 12:25 p.m. EST. Ms. Moore thanked observers and guests for attending the meeting.
Council Terms
Following an in-camera discussion, AcSOC approved the term extensions from April 1, 2024, to June 30, 2024, for Lorraine Moore, Terry Goodtrack, Jocelyn Patenaude, John McKenzie, Shelley Brown, and Susan Campbell.
Board Recruitment
Following an in-camera discussion, AcSOC approved the following motions:
It was moved by Sylvie Monette, seconded by Terry Goodtrack;
Be it resolved:
That the Accounting Standards Oversight Council approves the reappointment of Jennifer Teoh to PSAB for a three-year term beginning April 1, 2024.
That the Accounting Standards Oversight Council approves the appointments of Helen Bobiwash and Daniel Stadlweiser to PSAB for three-year terms beginning April 1, 2024.
That the Accounting Standards Oversight Council approves the appointment of Martin Boucher to the role of PSAB Vice-Chair of for a two-year term beginning April 1, 2024
Carried.
It was moved by Erica Teklits, seconded by John McKenzie;
Be it resolved:
That the Accounting Standards Oversight Council approves the reappointments of Howard Leung and Chris Kovalchuk to the AcSB for a four-year and a three-year term, respectively, beginning April 1, 2024.
That the Accounting Standards Oversight Council approves the appointments of Erin Rao, Crystal Cruickshank, Ian Lawrence, and Cathy Louladakis to the AcSB for three-year terms beginning on April 1, 2024.
That the Accounting Standards Oversight Council approves the appointment of Paul Hargreaves to the AcSB for a three-year term without the possibility of renewal.
Carried.
Board Governing Documents
Following an in-camera discussion, AcSOC approved the following motion:
It was moved by Clare Isman, seconded by Richard Talbot;
Be it resolved:
That the Accounting Standards Oversight Council approves the Terms of Reference for PSAB and the AcSB as presented.
Carried.
Adjournment
Having no other business, the public portion of the meeting was adjourned at 2:30 p.m.