Accounting Standards Board
February 15, 2018
This summary of Accounting Standards Board (AcSB) decisions has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussion on projects, which may change after further deliberations by the AcSB. Decisions to publish Handbook material are final only after a formal ballot process.
IFRS® Discussion Group
The Board discussed the Group’s recommendation from its January 2018 meeting to consider whether to refer the issue, “IFRS 16: Lease Incentive,” to the International Accounting Standards Board (IASB) or IFRS® Interpretations Committee. The Board agreed with the Group that there is a conflict between paragraph 24(b) and Illustrative Example 13 of IFRS 16.
The Board also considered the additional information that it directed staff to obtain about the potential effect the issue “IFRS 16 and IAS 34: Variable Lease Payments” could have on entities when adopting IFRS 16. The Board agreed there is merit to the issue and that clarifying the interaction between paragraph 38(b) of IFRS 16 Leases and paragraph B7 of IAS 34 Interim Financial Reporting (i.e., accompanying illustrative example) would help with implementation efforts in practice.
For both issues, the Board will explore options with the IASB to determine what is the most efficient and effective way to clarify the interaction between the authoritative text in IFRS 16 and the non-authoritative illustrative examples of both IFRS 16 and IAS 34.
Standards for Private Enterprises
Private Enterprise Advisory Committee
The Board received feedback on the discussions at the recent Private Enterprise Advisory Committee meeting. The Board will deliberate the Committee’s advice on the Agriculture, Retractable or Mandatorily Redeemable Shares and Financial Instruments – Narrow-scope Amendments projects at its March 20-21, 2018, meeting.
AcSB Research Program
The Board discussed the next steps for its research program, including topics to continue and begin researching, and strategies to involve academics and other stakeholders. The Board also considered the research-related goals to include in the Board’s 2018-2019 Annual Plan for the operating year commencing April 1, 2018.
AcSB Due Process
The Board approved a report to the Accounting Standards Oversight Council on its compliance with due process.
Read about Board recommendations made to influence the development of IFRS® Standards and enhance the global comparability of financial reporting outcomes, including U.S. GAAP, in the Board’s Responses to IASB Documents for Comment and Responses to Other Documents for Comment.