Annual Improvements 2015 – 2017
|Current Status||Next Steps|
IASB and AcSB are deliberating comments on their Exposure Drafts.
To be determined.
The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend three International Financial Reporting Standards (IFRSs) as part of its 2015 – 2017 Annual Improvements project.
This cyclical project is an efficient method to deal with a collection of narrow-scope IFRS amendments, specifically relating to the following:
- IAS 12: income tax consequences of payments on financial instruments classified as equity;
- IAS 23: borrowing costs eligible for capitalization; and
- IAS 28: long-term interests in an associate or joint venture.
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 draft on each IASB proposal. Subject to the responses to the AcSB’s exposure draft on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRSs for publicly accountable enterprises.
PROJECT NEWS & DECISION SUMMARIES
AcSB Response – Annual Improvements to IFRS Standards 2015-2017 Cycle
On April 12, 2017, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft issued in January 2017. Overall, the letter supports most of the proposed amendments. However, the letter expresses concern that the proposed amendments to IAS 28 Investments in Associates and Joint Ventures will not be effective at clarifying the interaction between IAS 28 and IFRS 9 Financial Instruments for long‐term interests. As well, the letter highlights concern over the timing of issuing these amendments because Canadian stakeholders need the amendments endorsed and incorporated into Canadian GAAP by November 1, 2017, when large Canadian banks will first apply IFRS 9. Furthermore, the letter recommends clarifications to the drafting of the amendments to IAS 12 Income Taxes and IAS 23 Borrowing Costs. Read the AcSB letter posted by the IASB.
AcSB Decision Summary – March 21-22, 2017
The AcSB discussed and approved its response letter to the IASB’s Exposure Draft, “Annual Improvements to IFRS Standards 2015-2017 Cycle,” subject to drafting changes.
AcSB Exposure Draft – Annual Improvements to IFRS Standards 2015 – 2017 Cycle
February 9, 2017. The AcSB has issued an Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Stakeholders are encouraged to submit their comments by April 12, 2017.
IASB Exposure Draft – Annual Improvements to IFRS Standards 2015–2017 Cycle
January 17, 2017. The IASB has issued an Exposure Draft proposing amendments to three IFRSs as part of its annual improvements project. Canadian stakeholders are encouraged to submit their comments to the IASB by April 12, 2017.
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.