Decision Summary January 18, 2018

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.

IFRS® Standards

IFRS® Discussion Group

The Board received feedback on the discussions at a recent IFRS Discussion Group meeting. The feedback included the Group’s recommendations to the Board to consider whether the issues related to cryptocurrencies, cloud-computing arrangements, lease incentives and interim period reporting of variable lease payments should be raised to the International Accounting Standards Board (IASB) or the IFRS® Interpretations Committee. The Board will consider these issues at a future meeting.

Standards for Private Enterprises and Not-for-Profit Organizations (NFPOs)


The Board further considered the feedback received from stakeholders on issues arising from applying Section 3400, Revenue, in Part II of the CPA Canada Handbook – Accounting. This feedback included the results of user outreach and advice from its Private Enterprise Advisory Committee on possible approaches to address these issues.

The Board directed staff to develop a project proposal to address the stakeholders’ issues at a future meeting. In developing the proposal, the Board further directed staff to:

  • expand a preliminary analysis comparing and contrasting the current risks-and-rewards model with a control-based model derived from the concepts in the standards on Revenue from Contracts with Customers in IFRS Standards and U.S. GAAP; and
  • consider which model is currently supported by the concepts in Section 1000, Financial Statement Concepts, in Part II of the Handbook and the forthcoming IFRS Conceptual Framework for Financial Reporting.


The Board considered the results of research conducted on accounting for combinations by NFPOs. It directed staff to prepare a project proposal for discussion at a future meeting, as the lack of guidance in Part III of the Handbook may be resulting in diversity in practice. The proposal will explore the similarities and differences in the characteristics of these transactions completed by NFPOs applying Part III and for-profit enterprises applying Part II.

Contributions – Revenue Recognition and Related Matters

The Board considered the research results, which consisted of the following:

  • An analysis of NFPOs’ financial statements to understand the types of contributions organizations receive and the types of organizations that use the deferral method or the restricted fund method.
  • Consultations with NFPOs to understand the terms and conditions of the various types of contributions received and why they use the deferral method or the restricted fund method to account for those contributions.
  • Consultations with individuals that use not-for-profit financial statements, including foundations, government funders, a lender and not-for-profit directors, to understand what information they need to make decisions.

The Board directed staff to begin developing a consultation paper for consideration at a future meeting.

Due Process and Governance

AcSB 2018-2019 Annual Plan

The Board reviewed and discussed a draft of its annual operating plan for the year beginning on April 1, 2018. The discussion included considering the projects related to the standards for private enterprises and NFPOs the Board may undertake, as well as the Board’s role in influencing the development of new IFRS Standards.

The Board will present its draft annual plan to the Accounting Standards Oversight Council (ASOC) and its Performance Review Committee in accordance with the Board’s governance procedures. The Board expects to approve its annual plan in March 2018, after considering the Council’s and Committee’s input.

AcSB 2017-2018 Draft Interim Performance Report

The Board discussed an initial draft of its performance report for the year ending March 31, 2018. It will present its draft report to ASOC’S Performance Review Committee in accordance with the Board’s governance procedures. The Board expects to approve its performance report in April 2018, after considering the Committee’s input and updating the report for the Board’s activities up to March 31, 2018.

AcSB’s Standard-Setting Due Process

The Board decided on revisions to its AcSB Standard-Setting Due Process Manual to present the document to the Council in accordance with the Board’s governance procedures. The Board expects to approve the manual in March 2018, after considering the Council’s input.