Post-implementation Review: Section 3856, Financial Instruments

BACKGROUND

A post-implementation review of Section 3856, Financial Instruments, will assess the effect of this standard on financial statement users and preparers.

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This review is the first of its kind to be undertaken by the AcSB. It will consider whether the standard has achieved the intended objectives and the issues that were important or contentious during the development of the standard. It will also consider any unexpected costs or implementation problems that have been encountered since the standard was published.

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PROJECT NEWS

Feedback Statement – Post-implementation Review: Section 3856, Financial Instruments
September 11, 2015.  This document summarizes the input received from stakeholders by the AcSB during the course of this Post-implementation Review.

AcSB Decision Summary – July 23, 2015
The AcSB approved a feedback statement to its Request for Information,  “Post-implementation Review: Section 3856, Financial Instruments,” subject to drafting changes and a written ballot.  The feedback statement is expected to be issued in September 2015.

AcSB Decision Summary – May 25-26, 2015
The AcSB considered the responses to its Request for Information, “Post-implementation Review: Section 3856, Financial Instruments,” as well as the results of the roundtable discussions with stakeholders, and discussed the content to be included in the feedback statement. 

The AcSB expects to issue the feedback statement in the third quarter of 2015.

Private Enterprise Advisory Committee Notes – April 1, 2015
The Committee discussed the feedback received from comment letter respondents and roundtable participants on the post-implementation review of Section 3856, Financial Instruments. It agreed on its input to the AcSB on the significance of various issues identified during the post-implementation review. The Committee also agreed to advise the AcSB that members thought the outreach activities were sufficient and had identified all significant issues. The AcSB will consider the feedback received from the post-implementation review, together with the Committee’s recommendations, and will issue a feedback statement later this year.

Roundtable Discussions – Stakeholders’ Views Sought on Section 3856, Financial Instruments – January 2015
December 18, 2014. The AcSB is holding roundtables to obtain input on its Post-Implementation Review of Section 3856, Financial Instruments, and on its Exposure Draft, “Redeemable Preferred Shares Issued in a Tax Planning Arrangement.” Register to attend a roundtable discussion to share your views.

Private Enterprise Advisory Committee Notes – December 17, 2014
The AcSB is carrying out a post-implementation review of Section 3856, Financial Instruments. The objective of the review is for the AcSB to assess whether:

  • it provides financial statement information that is useful to financial statement users and how this information could be improved;
  • there are unexpected costs or challenges in applying the requirements of the standard; and
  • there are areas of the standard that represent interpretation challenges.

The Committee discussed the questions included in the Request for Information, “Post-Implementation Review: Section 3856, Financial Instruments,” and provided its input to the AcSB.  The AcSB will consider all of the feedback received from the post-implementation review and consider what amendments, if any, should be made to the standard.

FYI Article – Financial Instruments: Reviewing the Standard
November 11, 2014. This article discusses the AcSB’s post-implementation review of Section 3856, Financial Instruments, to identify concerns and potential improvements.

Roundtable Discussions – Stakeholders’ Views Sought on Section 3856, Financial Instruments – November 2014
November 7, 2014. The AcSB is holding roundtables to obtain input on its Post-Implementation Review of Section 3856, Financial Instruments, and on its Exposure Draft, “Redeemable Preferred Shares Issued in a Tax Planning Arrangement.” Register to attend a roundtable discussion to share your views.

Request for Information – Post-Implementation Review: Section 3856, Financial Instruments
October 8, 2014. The AcSB has issued a Request for Information seeking feedback on whether Section 3856 is causing unexpected challenges and is meeting user needs. Stakeholders are encouraged to submit their comments, on the form provided, by February 9, 2015.

AcSB Decision Summary – September 3-4, 2014
The AcSB approved a request for information for the post-implementation review of Section 3856, Financial Instruments. The purpose of the post-implementation review is to assess the effect of the new Section on financial statement users, preparers and auditors to help the AcSB identify areas in which unexpected costs or implementation issues are encountered. Therefore, the request for information will ask a series of questions to learn about issues in practice when applying Section 3856.  Following consideration of the feedback received, the AcSB will present its findings in a report, including whether amendments to Section 3856 should be considered. There is no presumption that a post-implementation review will lead to any changes to a standard.

The AcSB expects to publish this document for public comment in October 2014 with a 120-day comment period.

Private Enterprise Advisory Committee Notes – April 3, 2014
The Committee had a preliminary discussion about how to implement the AcSB’s decision to carry out a post-implementation review of Section 3856, Financial Instruments. The Committee will discuss the development of a process to be used at a subsequent meeting.

AcSB Decision Summary – March 18-19, 2014
The AcSB decided to carry out a post-implementation review of Section 3856, Financial Instruments. As the AcSB has not previously undertaken post-implementation reviews, the initial step will be to develop the process to be used.  The AcSB also decided to defer a post-implementation review of Section 1582, Business Combinations, until there has been more experience in applying that standard.

 

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.