Conceptual Framework

Current Status Next Steps

IASB is deliberating comments received on its Exposure Drafts.

First half of 2018 – IASB to issue final Conceptual Framework.

BACKGROUND

The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to build on the existing Conceptual Framework by updating, improving and filling in gaps,  rather than fundamentally reconsidering all aspects of the Conceptual Framework.

(Read more)

In developing the Conceptual Framework, the IASB will focus on:

  • elements of the financial statements (including the boundary between liabilities and equity);
  • recognition and derecognition;
  • measurement;
  • presentation and disclosure (including the question of what should be presented in other comprehensive income); and
  • the reporting entity.

The AcSB’s due process includes ensuring that Canadian entities’ financial reporting needs are considered by the IASB and issuing the AcSB’s own exposure drafts on the IASB’s proposals.  In addition, the AcSB Chair is a member of the IASB’s Accounting Standards Advisory Forum and is advising the IASB on this project.  Subject to the responses to the AcSB’s exposure drafts on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the revised Conceptual Framework will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRSs for publicly accountable enterprises.

(Hide)


PROJECT NEWS & DECISION SUMMARIES

AcSB Response – Conceptual Framework for Financial Reporting
On November 25, 2015, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft issued in May 2015.  The letter strongly supports the high priority given to this project by the IASB.  The letter supports many aspects of the proposed Conceptual Framework including the positioning of stewardship within the discussion of the objective of financial reporting, the reintroduction of an explicit reference to substance over form, and the element definitions.  However, the letter notes that a significant amount of thought, analysis, discussion and education is needed to develop measurement concepts and principles that will be useful and effective.  As a result, the letter urges the IASB to add a research project on measurement to its agenda.  Also, the letter expresses concerns with a number of the proposals including those on prudence, derecognition, transactions with holders of equity claims and the rebuttable presumption regarding reclassifying certain amounts to profit or loss from other comprehensive income.  Read the AcSB letter posted by the IASB.

AcSB Response – Updating References to the Conceptual Framework
On November 25, 2015, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft issued in May 2015. The letter agrees with the proposed amendments because they are necessary to provide a transition period for entities that have used the Conceptual Framework.  Read the AcSB letter posted by the IASB.

AcSB Decision Summary – October 20, 2015
The AcSB agreed on additional key points to include in the AcSB’s response letter to the IASB's Exposure Draft, “Conceptual Framework for Financial Reporting,” and reviewed a draft of its comment letter.

The AcSB encourages stakeholders to share their views on the Exposure Draft with the IASB by submitting comment letters by November 25, 2015.

AcSB Exposure Draft – Conceptual Framework for Financial Reporting
October 2, 2015.  To align with the IASB’s extension, the deadline for comments has been changed to November 25, 2015 from October 26, 2015.

AcSB Exposure Draft – Updating References to the Conceptual Framework
October 2, 2015.  To align with the IASB’s extension, the deadline for comments has been changed to November 25, 2015 from October 26, 2015.

AcSB Decision Summary – September 17, 2015 
The AcSB discussed additional input from its Conceptual Framework Discussion Group and the public roundtable held on September 8, 2015 on the IASB’s Exposure Draft, “Conceptual Framework for Financial Reporting,” and reviewed a draft of its comment letter. 

In addition, the AcSB agreed on key points to include in its response letter to the IASB’s Exposure Draft, "Updating References to the Conceptual Framework.” 

The AcSB encourages stakeholders to share their views on the Exposure Drafts with the IASB by submitting comment letters by October 26, 2015.

FYI Article – Influence the Future of Financial Reporting: Revising the Conceptual Framework
August 27, 2015.  This article outlines ways Canadians can get involved.

AcSB Exposure Draft – Conceptual Framework for Financial Reporting
August 12, 2015. The AcSB has issued an Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Canadian stakeholders are encouraged to submit their comments, on the form provided, by October 26, 2015.

AcSB Exposure Draft – Updating References to the Conceptual Framework
August 12, 2015. The AcSB has issued an Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Canadian stakeholders are encouraged to submit their comments, on the form provided, by October 26, 2015.

Roundtable Discussion – Stakeholders’ Views Sought on an Exposure Draft on the Conceptual Framework
July 29, 2015. Register to attend the AcSB’s roundtable discussion being held on Tuesday, September 8, 2015 to share your views on the IASB’s Conceptual Framework proposals.

AcSB Decision Summary – July 23, 2015
The AcSB considered input from its Conceptual Framework Discussion Group and Academic Advisory Council on the IASB’s Exposure Draft, “Conceptual Framework for Financial Reporting.”  The AcSB is developing the points to be included in its comment letter to the IASB and will consider additional views from the Conceptual Framework Discussion Group as well as input from the public roundtable to be held on September 8, 2015. Canadian stakeholders are encouraged to submit their comments to the IASB by October 26, 2015.

IASB Exposure Draft – Conceptual Framework for Financial Reporting
 June 2, 2015. The IASB has issued an Exposure Draft proposing a revised Conceptual Framework. Canadian stakeholders are encouraged to submit their comments to the IASB by October 26, 2015.

IASB Exposure Draft – Updating References to the Conceptual Framework
 June 2, 2015. The IASB has issued a separate Exposure Draft to provide transition to the revised Conceptual Framework proposed in its Exposure Draft, “Conceptual Framework for Financial Reporting.” Canadian stakeholders are encouraged to submit their comments to the IASB by October 26, 2015.

AcSB Decision Summary – March 18-19, 2015
The AcSB approved a plan to respond to the IASB’s upcoming exposure draft.

AcSB Response – Conceptual Framework
On January 14, 2014 the AcSB submitted a comment letter to the IASB’s Discussion Paper issued in July 2013. The letter strongly supports a project to complete the IASB’s Conceptual Framework.  The letter emphasizes that the Conceptual Framework should be focused at the conceptual level and should include only concepts that have a sound theoretical basis in order to provide an integrated set of concepts that is useful.  The letter specifies which concepts should be part of the Conceptual Framework and the other material that, where relevant, should be dealt with outside of the Conceptual Framework. The letter recommends completing, in the proposed timeframe, the topics on asset and liability definitions, recognition and derecognition because they are well advanced and would be of significant benefit in moving forward some important standard-setting projects.  However, the topics on liabilities and equity, measurement, presentation and disclosure, and other comprehensive income, require significant further development.  The letter proposes that additional targeted research start as soon as possible. Read the AcSB letter posted by the IASB.

AcSB Decision Summary – December 3, 2013
The AcSB discussed additional input from its Academic Advisory Council, Conceptual Framework Discussion Group and several members of the IFRS Discussion Group on the IASB’s Discussion Paper, “A Review of the Conceptual Framework for Financial Reporting.” The AcSB reviewed a draft comment letter based on that additional input and provided direction to the staff on how to revise the draft.  It also identified the key recommendations for the IASB to consider.

AcSB Decision Summary – November 6-7, 2013
The AcSB discussed additional input from its Conceptual Framework Discussion Group and the IASB’s North American Roundtable held in Toronto on October 18, 2013 on the IASB’s Discussion Paper, “A Review of the Conceptual Framework for Financial Reporting.” The AcSB is developing the points to be included in its comment letter to the IASB and will continue to consider additional views from the Discussion Group and its Academic Advisory Council before finalizing its comment letter.

The AcSB encourages stakeholders to share their views on the Discussion Paper with the IASB by submitting a comment letter by January 14, 2014.

AcSB Decision Summary – September 11-12, 2013
The AcSB began its discussions of the IASB’s Discussion Paper, “A Review of the Conceptual Framework for Financial Reporting,” based on initial comments from its Conceptual Framework Discussion Group.

The AcSB is hosting the IASB’s North American Roundtables on the proposals in Toronto on October 18, 2013. The AcSB encourages stakeholders to share their views on the Discussion Paper with the IASB by participating in the roundtables and submitting a comment letter by January 14, 2014.

IASB Roundtable – Conceptual Framework Discussion Paper
August 21, 2013. Register to attend roundtable discussions in Toronto on Friday October 18 to share your views with the IASB on the conceptual framework proposals. The discussions will cover measurement, use of other comprehensive income, a topic nominated by participants and a general session covering other areas. Submit suggested topics by September 10, 2013.

Volunteer Opportunity – Conceptual Framework Discussion Group
July 24, 2013.  The AcSB is currently seeking new members for this Discussion Group.

IASB Discussion Paper – Conceptual Framework
 
July 18, 2013. The IASB has issued a Discussion Paper exploring possible changes to the Conceptual Framework for Financial Reporting. Canadian stakeholders are encouraged to read the snapshot summary and attend a live webinar before submitting comments to the IASB by January 14, 2014.

AcSB Decision Summary – July 10, 2013
The AcSB approved a plan to develop a response on the forthcoming IASB discussion paper on the conceptual framework.  The AcSB plans to seek the views of its Conceptual Framework Discussion Group, Academic Advisory Council and User Advisory Council on the proposals.  The AcSB plans to host the IASB’s North American roundtable on this topic in October 2013, and other meetings, to encourage discussion of the proposed concepts in Canada.

The AcSB agreed that it should seek additional members for the Conceptual Framework Discussion Group to gain as many insights as possible from interested individuals.

AcSB Response – Conceptual Framework — Reporting Entity
On July 14, 2010, AcSB staff submitted a comment letter responding to the IASB’s Exposure Draft. The letter supports the IASB’s proposed definition of a reporting entity. The letter recommends that the concept of control be explicitly incorporated within the definition to identify the boundaries that define a reporting entity. Also, the letter recommends that the nature of the entity’s business activities demonstrate the unit-of-account to be used to account for entities the reporting entity controls. Read the AcSB letter posted by the IASB.

 

 

 

Disclaimer: This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.