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AcSB Decision Summary – February 23, 2022

This summary of Accounting Standards Board (AcSB) decisions has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussion on projects, which may change after further deliberations by the Board. Decisions to publish Handbook material are final only after a formal ballot process.

The AcSB will respond to change and reprioritize when necessary, ensuring we can address implementation challenges and provide the information users may need in these unique circumstances.

The AcSB values input and feedback from stakeholders and can be reached anytime through our online form.

IFRS® Standards

Non-current Liabilities with Covenants

The AcSB discussed its draft response letter to the International Accounting Standards Board’s Exposure Draft, “Non-current Liabilities with Covenants,” and provided staff with comments to incorporate into the final letter. The Board will submit its response letter by the March 21, 2022, deadline.

Standards for Private Enterprises

Related Party Combinations

The AcSB received an update on the Related Party Combinations project and discussed a preliminary staff proposal to address stakeholder concerns with the current accounting for related party business combinations under Section 3840, Related Party Transactions. The Board also discussed the feedback received from the Private Enterprise Advisory Committee on the proposal.

The AcSB directed staff to conduct further research to better understand the interactions of the staff proposals with the existing requirements. The Board will discuss the research results at its March 2022 meeting.

Standards for Private Enterprises and Not-for-Profit Organizations

Cloud Computing Arrangements

The AcSB reviewed a revised draft of the proposed Accounting Guideline and other information in the exposure draft. The Board gave permission to begin the balloting process and plans to publish the exposure draft before the end of March 2022, with a 90-day comment period. 

Standards for Pension Plans

The AcSB approved a communications and outreach plan for the upcoming Pension Plans exposure draft. The Board intends to engage in targeted consultation activities with industry and regulatory groups and hold general roundtable discussions for all pension stakeholders.

The AcSB also discussed other topics its Pension Plan Working Group raised, which are broader in scope than those addressed in the upcoming exposure draft. These included valuation of defined benefit obligations, presentation of investment management fees and investment disclosures. The Board will discuss how to prioritize these topics in the context of its other domestic standard-setting agenda at its March 2022 meeting. 

Relevance of Financial Reporting

Independent Standard-setting Review

The AcSB received a presentation on the Consultation Paper by the Independent Review Committee on Standard Setting in Canada (IRCSS). It reviews key matters related to the governance and structure for establishing Canadian accounting, auditing, and assurance standards, and identifies what might be needed for the future – including sustainability standards. The Board encourages stakeholders to share their views on the Consultation Paper by submitting their response letters to the IRCSS by March 31, 2022.

Due Process

AcSB’s Advisory Committees

Not-for-Profit Advisory Committee

At its meeting on February 10, 2022, the Not-for-Profit Advisory Committee discussed the AcSB’s Annual Plan, financial reporting issues in practice, reporting controlled and related entities, and strategic research.

Private Enterprise Advisory Committee

At its meeting on February 9, 2022, the Private Enterprise Advisory Committee discussed the AcSB’s Annual Plan, related party combinations, and strategic research.

Strategic Plan

The AcSB discussed a revised draft of its 2022-2027 Strategic Plan and feedback received on the draft from the Accounting Standards Oversight Council (AcSOC) and AcSOC’s Performance Review Committee.

The AcSB also discussed the communications plan for the issuance of the final plan. The Board expects to issue the final 2022-2027 Strategic Plan on March 31, 2022.