Chair Message
Each year, I am reminded that standard setting rarely happens in calm conditions. This past year tested that reality more than most, considering our political and economic environment has been marked by significant uncertainty. Staying focused on our mandate required persistence and collaboration. Despite these challenges, we accomplished a substantial amount of work – much of it foundational, much of it future oriented, and all of it informed by what we heard from interested and affected parties.
Early in the year, it became clear that people’s capacity to engage had shifted. We understood that economic pressures, staffing constraints, and organizational uncertainty made it difficult to find time to participate in outreach. In response, we adapted our approach by offering additional touchpoints, delivering educational webinars ahead of consultations, and using shorter, more focused outreach formats. Engagement remains challenging in this environment, yet many still provided thoughtful perspectives. I am grateful for the time and effort they dedicated.
A consistent message we heard is that standards must be scalable, practical, and easier to apply. This feedback aligns with the focus of our long-term strategy. Throughout the year, we advanced work on scalability through our Detailed Review of Accounting Standards for Private Enterprises project and responded to concerns about complexity and cost when developing proposals in our Subsequent Measurement of Goodwill and Acquired Intangible Assets project. These messages guided our decisions and reinforced the importance of our work.
We also continued to implement our Guidance Framework to identify and help address application questions received relating to our domestic standards. Our Guidance Framework project pages for Accounting Standards for Private Enterprises, Accounting Standards for Private Sector Not-for Profit Organizations, and Accounting Standards for Pension Plans include a summary of the issues we’ve discussed this year, and next steps to help promote consistent implementation and application.
Although domestic projects demanded significant attention, we continued to contribute meaningfully to international dialogue to influence the development of IFRS® Accounting Standards. Canada’s presence in global forums matters, and our active participation ensures Canadian perspectives remain visible at a time of rapid change in financial reporting. Maintaining this balance – advancing national priorities while influencing international conversations – would not be possible without the commitment of Board members, staff, and volunteers.
Readers of my blog, Inside Standard Setting, will know that I often use analogies to describe our work. While I considered many analogies for this year, one stood out: We advanced our projects and addressed the difficult issues without “dodging wrenches.” In other words, we did not avoid complexity or postpone tough decisions. Instead, we approached them openly and with balanced judgment, ensuring our work continued to reflect the needs of those applying our standards.
I extend my sincerest thanks to everyone who engaged with us this year. Whether through a roundtable, a comment letter, a survey, or a brief discussion, your feedback shaped our decisions and improved our work. We remain committed to listening, responding thoughtfully, and ensuring the standards we develop continue to serve the public interest.
Armand Capisciolto, FCPA, FCA, CPA(MI)
Chair, AcSB
Laying a strong foundation
Progressing on our commitment
We made meaningful progress this year on the objectives identified in our 2022-2027 Strategic Plan related to scalability. We consulted extensitvely on the Detailed Review of Accounting Standards for Private Enterprises (ASPE) project to gather input on opportunities to enhance understandability and reduce complexity, without affecting the usefulness of information. In parallel, we consulted on proposed amendments for the Subsequent Measurement of Goodwill and Acquired Intangible Assets project – an important step in addressing areas where interested and affected parties have reported challenges in practice. Together, these initiatives reflect our commitment to support a scalable approach to financial reporting to meet the differing needs of Canadian non-listed entities.
Advancing key domestic projects
We completed several of our narrow-scope domestic projects on Agriculture, Related Party Combinations, and Pension Plans, and we issued pronouncements that address identified practice issues. We also made substantial progress our other domestic projects, including Contributions, Reporting Controlled and Related Entities by Non-for-Profit Organizations, and Financial Statement Concepts. We expect to consult with interested and affected parties on all of these projects in the near future.
We continued to address issues submitted through our Guidance Framework to support consistent application across Canada. The Related Party Combinations project is an example of how we addressed an issue raised by interested and affected parties. We provided a timely response that promotes high quality financial reporting and reduces uncertainty in practice. We have also recently updated our Standard-setting Due Process Manual, which includes a change that gives us greater flexibility to package minor amendments to address issues more efficiently.
Making global contributions
Internationally, we strengthened our influence and collaboration. We began our term as co chair of the International Forum of Accounting Standard Setters (IFASS) to help facilitate dialogue on matters of mutual interest and support the maintenance of high-quality standards for global application. We also worked closely with the U.S. Financial Accounting Standards Board (FASB), including participating at its academic conferences. These activities help contribute Canadian perspectives to the global standard setting dialogue.
We also conducted research in the Canadian market to inform international discussions on segment reporting and intangible assets, ensuring Canadian insights are reflected in debates that may shape future requirements. In addition, we continued to foster relationships with other national standard setters, including Australia, Germany, Japan, the United Kingdom, and the United States, reinforcing our commitment to knowledge sharing and coordinated problem solving across jurisdictions.