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 interested and affected parties and can be reached anytime through our online form.
Standards for Private Enterprises and Not-for-Profit Organizations
Guidance Framework – Application Question
The AcSB discussed an application question regarding a disclosure requirement in Section 3400, Revenue in Part II of the CPA Canada Handbook – Accounting. The disclosure requirement in paragraph 3400.32A(b) requires an enterprise to disclose “the aggregate amount of costs incurred and recognized profits (less recognized losses) to date” for contracts in progress at the end of the reporting period that have been accounted for using the percentage of completion method.
The question is whether paragraph 3400.32A(b) should be disclosed as a single aggregate number, or as two amounts: the aggregate amount of costs incurred and separately, the aggregate amount of recognized profits (less recognized losses) to date.
The AcSB considered input from its Private Enterprise Advisory Committee and Medium and Small Practitioners Advisory Committee on whether guidance was needed to clarify the disclosure requirement. Committee members advised that there is diversity in practice regarding the application of this paragraph and that guidance would be helpful to clarify the requirement and the objective of the disclosure.
The AcSB discussed various options to address the question. The Board tentatively decided not to undertake standard-setting action at this time, as application challenges related to Section 3400 are currently being explored in other open projects. The Board will assess whether amendments to the disclosure requirements in Section 3400 could be incorporated into a broader standard-setting project in the future that would scope in other identified revenue application issues.
Standards for Pension Plans
Next Steps for Part IV
The AcSB approved a project to develop a survey on the Board’s future priorities for Part IV of the Handbook. The survey would enable the Board to obtain broader input on the priorities for Part IV and help the Board decide on the next project(s) to undertake for Part IV. Further, the survey results would inform the Board’s 2026-2027 Annual Plan and the next strategic plan.
The AcSB discussed the content of the survey, which it plans to issue in the fall of 2025. The Pension Plan Advisory Committee will meet in June 2025 to provide input on the draft survey.
Relevance of Financial Reporting
Evaluating the Preface
The AcSB approved its “Evaluating the Preface: Project Summary,” which summarizes the results of its research and its rationale for concluding the project. This document will be posted on the Board’s website in May 2025.
As the AcSB has concluded its Evaluating the Preface project, the Board will consider resuming its research project on Revenue –Upfront Non-refundable Fees or Payments when discussing its future agenda priorities.
Governance
AcSB’s Performance Report
The AcSB approved its performance report for the operating year ended March 31, 2025, subject to drafting changes, for presentation to the Reporting and Assurance Standards Oversight Council. The Oversight Council will receive the report in June 2025 to assess the Board’s performance for the 2024-2025 operating year.
AcSB Member and Volunteer Surveys
The AcSB discussed the results of its members’ self-assessment and other volunteers’ performance surveys of the Board its committees, and groups in 2024-2025. The Board discussed actions to address the areas of significant feedback.
Due Process
Standard-setting Due Process Manual Update
The AcSB discussed proposed changes to its Standard-setting Due Process Manual, including changes to clarify certain processes to better support the Board in responding to interested and affected party needs on a timely basis. Specifically, the proposed changes relate to post-implementation review, re-exposure, annual improvement process, non-authoritative guidance, due process connectivity, and strategic and annual planning.
The AcSB provided staff with comments on the proposed changes. Staff will present the revised Standard-setting Due Process Manual to the Board at a future meeting. The Board will seek approval of the proposed changes from the Reporting and Assurance Oversight Council.