Annual Improvements 2014 – 2016

BACKGROUND

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 2014 – 2016 Annual Improvements project.

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This cyclical project is an efficient method to deal with a collection of narrow-scope IFRS amendments, specifically relating to the following:

  • IFRS 1: deletion of short-term exemptions for first-time adopters;
  • IFRS 12: clarification of the scope of the disclosure requirements; and
  • IAS 28: measuring investees at fair value through profit or loss on an investment-by-investment basis.

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.

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PROJECT NEWS

Final Amendments – Annual Improvements to IFRS Standards 2014 – 2016 Cycle
December 15, 2016. The IASB has issued final amendments to three IFRSs as part of its Annual Improvements project. The amendments have varying effective dates.

AcSB Response – Annual Improvements to IFRSs 2014 – 2016 Cycle
On February 17, 2016, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft issued in November 2015.  The letter supports the proposed amendments. However, it suggests clarifying that an entity that has previously interpreted IAS 28 Investments in Associates and Joint Ventures as requiring a consistent accounting policy choice between fair value and equity method can reclassify individual investments on initial adoption of the amendment.  Read the AcSB letter posted by the IASB.

AcSB Exposure Draft – Annual Improvements to IFRSs 2014 – 2016 Cycle
December 15, 2015. 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, on the form provided, by February 17, 2016.

IASB Exposure Draft – Annual Improvements to IFRSs 2014–2016 Cycle
November 20, 2015. 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 February 17, 2016.

AcSB Decision Summary – September 17, 2015
The AcSB approved a policy for responding to IASB narrow-scope exposure drafts that includes seeking feedback on proposals from members of its advisory committees, transition resource support groups and additional stakeholders based on the significance of the topic. The approved policy will be applied to recently released and future IASB narrow-scope exposure drafts.

 

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.