Post-implementation review of IFRS 8

BACKGROUND

The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to review IFRS 8 Operating Segments to provide input on the standard’s effects and whether it is functioning as intended.

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The review of IFRS 8 is to determine if it provides financial statement users with useful information and whether there are any significant difficulties or concerns that preparers have in applying the standard.

The AcSB participates in the consultations and activities on the project to ensure that Canadian entities’ financial reporting needs are considered by the IASB. The review of IFRS 8 may lead to the IASB making minor amendments to the standard, preparing an agenda proposal for a broader revision of the standard, or perhaps no changes at all.

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PROJECT NEWS

IASB Feedback Statement – Post-implementation Review: IFRS 8 Operating Segments
July 22, 2013. The IASB has issued a Feedback Statement on the post-implementation review of IFRS 8. The review concluded that the standard was generally functioning as anticipated. Those limited areas where further investigation is warranted will also be subject to liaison with the FASB.

Users’ Views – Post-implementation Review of IFRS 8
November 28, 2012. The AcSB’s User Advisory Council has submitted a response to the IASB stating that segmented information is critical to users. The letter acknowledges that segments identified in financial statements are often too broad to enable users to evaluate the nature and financial effects of business activities engaged by the entity.

AcSB Response – Post-Implementation Review of IFRS 8
On November 20, 2012, the AcSB submitted a comment letter to the IASB’s Request for Information issued in July 2012. The letter strongly supports post-implementation reviews. It agrees that the management approach in IFRS 8 provides useful information to enable users of financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates. However, the letter recognizes that users are concerned that the disclosures do not always provide as much detail as they would like. Read the AcSB letter posted by the IASB.

AcSB Decision Summary – August 20, 2012
The AcSB approved a plan to consult with Canadian stakeholders on the IASB’s Request for Information, “Post-implementation Review: IFRS 8 Operating Segments,” and to finalize the AcSB’s response. To seek input from stakeholders on the effects of IFRS 8 and whether the standard is functioning as intended, the AcSB:

  • has issued an Invitation to Comment, “Post-implementation Review: IFRS 8 Operating Segments”;
  • has obtained information from its Academic Advisory Council on academic literature pertaining to IFRS 8;
  • will hold a roundtable discussion in Toronto on September 13, 2012; and
  • will consult with its User Advisory Council and other interested parties.

Canadian stakeholders are encouraged to submit their comments directly to the IASB by November 16, 2012.

Roundtable Discussion – IFRS 8 Operating Segments
August 16, 2012. Attend or call in to participate in this roundtable discussion in Toronto, on September 13, 2012, to share your views on the effects of IFRS 8 and whether the standard is functioning as intended.

Invitation to Comment – Post-implementation Review: IFRS 8 Operating Segments
August 9, 2012. The AcSB has issued an Invitation to Comment on the IASB’s post-implementation review of IFRS 8. Canadian stakeholders are encouraged to submit their comments to the IASB by November 16, 2012.

Request for Information – Post-implementation Review of IFRS 8 Operating Segments
July 20, 2012. The IASB has issued a Request for Information to seek input on the effect of implementing IFRS 8 and whether the standard is functioning as intended. Canadian stakeholders are encouraged to submit their comments to the IASB by November 16, 2012.

 

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.