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 AcSB. Decisions to publish Handbook material are final only after a formal ballot process.
Accounting Policies and Accounting Estimates
The Board discussed and approved its response letter to the International Accounting Standards Board’s (IASB) Exposure Draft, “Accounting Policies and Accounting Estimates (Amendments to IAS 8),” subject to drafting changes.
Definition of Material
The Board discussed and approved its response letter to the IASB® Exposure Draft, “Definition of Material (Proposed amendments to IAS 1 and IAS 8),” subject to drafting changes.
The Board discussed the due process activities performed by the IASB as well as the breadth and extent of its own due process activities undertaken to consult Canadians and influence the development of IFRS 17 Insurance Contracts over the last 17 years. The Board decided to proceed with its endorsement process for this standard.
The Board reaffirmed its 2016-2021 Strategic Plan commitment to assist Canadians in adopting new complex IFRS Standards, including IFRS 17. The Board will:
- work with others around the world and the IASB to actively encourage a common global adoption date;
- encourage the early identification and resolution of implementation issues including through its Insurance Transition Resource Group and by supporting the Canadian member of the IASB Transition Resource Group; and
- incorporate the non-authoritative guidance for IFRS 17 into the CPA Canada Handbook – Accounting.
In addition, the Board will assess the need to act if adopting IFRS 17 ahead of others would put our publicly accountable enterprises at a disadvantage.
Standards for Private Enterprises
The Board considered the drafting of the proposed new Section and directed the staff to develop the elements of cost that are included when full cost is not used to measure agricultural inventories.
In addition, the Board decided:
- that amortization should not be required when productive biological assets are managed and accounted for on a group basis and the useful life and productive capacity of the group does not change significantly over time;
- to confirm the preliminary views outlined in the Discussion Paper, “Agriculture,” regarding presentation and impairment; and
- in addition to the disclosures outlined in the Discussion Paper, agricultural producers must disclose:
- quantities of agricultural inventories and productive biological assets when practical; and
- their accounting policy when determining cost and information about unallocated costs.
The Board also directed the staff to arrange the fatal-flaw review and the field test of the proposed new Section. The Board will consider this feedback in March 2018 and plans to issue an exposure draft no later than the third quarter of 2018.
Due Process and Governance
AcSB 2018-2019 Annual Plan
The Board reviewed and discussed an initial draft of its annual operating plan for the year beginning on April 1, 2018. The Board made preliminary decisions on:
- the activities to undertake in 2018-19 that best serve its stakeholders and respond to changes in its operating environment; and
- how to allocate resources to key projects across each Part of the CPA Canada Handbook - Accounting.
Discussions will continue at its January meeting, and the Board expects to approve the 2018-19 annual plan in March 2018.
AcSB’s Standard-Setting Due Process
The Board decided on the scope and approach for revising its Due Process Handbook, including changing the title to the “AcSB Standard-Setting Due Process.”
The Board received feedback on the discussions at a recent User Advisory Council meeting.
Public Sector Accounting Board
The Board received a presentation from Charles-Antoine St-Jean, PSAB Chair, on topics of interest to both the AcSB and PSAB. In particular, he noted PSAB’s interest in the AcSB’s work on accounting for rate-regulated activities.
Read about Board recommendations made to influence the development of IFRS® Standards and enhance the global comparability of financial reporting outcomes, including U.S. GAAP, in the Board’s Responses to IASB Documents for Comment and Responses to Other Documents for Comment.