Accounting Standards Board
Decision Summary
July 17, 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® Standards

Application of IFRS® Standards in the European Union

The Board discussed key points to raise in its response to the European Commission’s Consultation Paper, Fitness Check on the EU Framework for Public Reporting by Companies.

Financial Instruments with Characteristics of Equity

The Board discussed a plan to respond to the International Accounting Standards Board’s (IASB’s) Discussion Paper, Financial Instruments with Characteristics of Equity. The plan includes outreach to stakeholders with a particular interest in this topic. The Board encourages stakeholders to share their views on the Discussion Paper by submitting comment letters to the IASB by January 7, 2019, with a copy to the AcSB.

IFRS® Discussion Group

The Board received feedback from the IFRS Discussion Group’s meeting on June 21, 2018. It included the Group’s recommendation that the Board consider whether the issues related to cannabis accounting, specifically the accounting for costs incurred related to biological transformation and the presentation of the statement of comprehensive income, should be raised to the IASB or the IFRS® Interpretations Committee.

The Board discussed the Group’s recommendations on the two cannabis-accounting issues noted above. It directed the staff to conduct research on whether entities in other jurisdictions are encountering similar issues in applying the guidance in International Accounting Standard (IAS) 41 Agriculture to account for biological assets. The Board will continue to discuss these issues at a future meeting.

The Board considered a status update on the various activities undertaken on past issues raised by the Group. For some issues, these activities included raising the issue internationally through various channels. The Board decided that based on international discussions on these issues, no further work is needed. The Board will monitor international developments relating to the remaining issues to determine whether further action is needed.

Insurance Contracts

The Board discussed implementation concerns its Insurance Transition Resource Group raised regarding IFRS 17 Insurance Contracts. The issues related to insurance contracts with investment components, mutual entities and reinsurance. The Board made no decisions.

Standards for Private Enterprises and Not-for-Profit Organizations

Financial Instruments – Narrow-scope Amendments

The Board approved the issuance of narrow-scope amendments to Section 3856, Financial Instruments, subject to final drafting and a written ballot.

The Board also decided that:

  • the subsequent measurement and impairment of financial instruments will consider how the instrument was initially measured; and
  • differences created in a related party transaction on initial measurement will be recognized in net income or equity when specific conditions are met.

The Board plans to issue the final amendments no later than the fourth quarter of 2018 in conjunction with the amendments relating to the Retractable or Mandatorily Redeemable Shares Issued in a Tax Planning Arrangement project.


The Board approved a project to address stakeholders’ issues about insufficient guidance on accounting for revenue in Section 3400, Revenue, in Part II of the Handbook. The Board plans to propose additional guidance on the following topics:

  • bill-and-hold arrangements;
  • multiple-element arrangements;
  • percentage of completion method;
  • reporting revenue gross or net; and
  • upfront non-refundable fees/payments.

In parallel with developing the proposed guidance, the Board will continue to examine the need for further improvements, including an assessment of retaining the current risk-and-rewards model.

The Board will consult its Private Enterprise Advisory Committee and Not-for-Profit Advisory Committee in developing the proposals. The Board plans to issue an exposure draft in the first half of 2019.

Standards for Not-for-Profit Organizations

Not-for-Profit Advisory Committee

The Board received feedback from the Not-for-Profit Advisory Committee’s meeting on July 5, 2018. The topics covered included contributions and the Draft Framework for Reporting Performance Measures.

Standards for Private Enterprises

Retractable or Mandatorily Redeemable Shares Issued in a Tax Planning Arrangement

The Board approved the issuance of final amendments, subject to final drafting and a written ballot.

The Board plans to issue the final amendments no later than the fourth quarter of 2018 in conjunction with the Financial Instruments–Narrow-scope Amendments project.

Enhancing the Relevance of Financial Reporting

Framework for Reporting Performance Measures

The Board discussed the Draft Framework for Reporting Performance Measures with several Chief Accountants from the Canadian Securities Administrators, exploring areas of mutual interest in promoting increased quality in the reporting of performance measures.

The Board also considered feedback from consultations carried out to date and decided to extend the comment period to October 1, 2018. The Board plans to seek additional feedback through surveys, discussions and responses to make the Framework a more useful tool for developing and reporting performance measures.

Due Process

The AcSB’s 2018-2019 Annual Plan

The Board received an update on the progress toward meeting its 2018-2019 Annual plan. The Board agreed that its current activities are progressing toward meeting its plan.


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.