Accounting Policy Changes (Amend IAS 8)
|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 IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.
The objective of this project is to lower the impracticability threshold for retrospective application of voluntary changes in accounting policy that result from agenda decisions published by the IFRS® Interpretations Committee. The proposed threshold would include a consideration of the benefits to users and costs to the entity of applying such changes retrospectively.
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 IFRS® Standards for publicly accountable enterprises.
PROJECT NEWS & DECISION SUMMARIES
AcSB Response – Accounting Policy Changes (Proposed amendments to IAS 8)
On July 26, 2018, the AcSB submitted a comment letter responding to the IASB's Exposure Draft issued in March 2018. The letter disagrees with the proposals to amend IAS 8 to lower the impracticability threshold for retrospective application of voluntary changes in accounting policy resulting from agenda decisions published by the IFRS® Interpretations Committee (agenda decisions). The AcSB expresses concerns that amending IAS 8 as proposed would essentially elevate the authority of agenda decisions without the extent of due process expected for such an outcome. The AcSB also notes that the proposals could lead to unintended consequences in jurisdictions, including Canada, where entities are expected to apply accounting policies in line with explanatory material in agenda decisions and, therefore, such changes in accounting policy are not voluntary in practice. The AcSB strongly encourages the IASB to consider another mechanism, such as a change in the process around agenda decisions, to achieve its objectives for this project. Read the AcSB letter posted by the IASB.
AcSB Exposure Draft – Accounting Policy Changes (Proposed amendments to IAS 8)
April 17, 2018. The AcSB has issued its Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Stakeholders are encouraged to submit their comments by July 27, 2018.
IASB® Exposure Draft – Accounting Policy Changes (Proposed amendments to IAS 8)
April 4, 2018. The IASB issued an Exposure Draft proposing amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. Canadian stakeholders are encouraged to submit comments to the IASB by July 27, 2018.
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.