AcSB Decision Summary – January 15, 2019

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.

IFRS® Standards

Insurance Contracts

The AcSB received an update on international developments of IFRS 17 Insurance Contracts, including the upcoming discussion at the January 23, 2019, International Accounting Standards Board (IASB) meeting.

At its meetings on November 14 and December 13, 2018, the IASB tentatively decided to propose the following amendments to IFRS 17, subject to public consultation; that:

  • the mandatory effective date of IFRS 17 be deferred by one year, so that entities would be required to apply IFRS 17 for annual periods beginning on or after January 1, 2022;
  • the fixed expiry date for the temporary exemption in IFRS 4 Insurance Contracts from applying IFRS 9 Financial Instruments be amended so that all entities would be required to apply IFRS 9 for annual periods beginning on or after January 1, 2022; and
  • the presentation of insurance contract assets and liabilities in the statement of financial position is determined using portfolios of insurance contracts rather than groups of insurance contracts.

The IASB and the AcSB will expose the proposed amendments to seek stakeholders’ comments once the IASB completes its deliberations. As part of its strategic plan, the AcSB will continue to monitor developments on IFRS 17 and is committed to assisting Canadian stakeholders in adopting this complex new insurance contracts standard.

Standards for Private Enterprises and Not-for-Profit Organizations


The AcSB continued its discussion on the scope of transactions subject to the proposed guidance.

The AcSB discussed some transactions between entities within the scope of Part III of the Handbook that would meet the criteria for accounting for the combination as a merger. The Board will discuss the accounting requirements for transactions to be considered a merger at its March 2019 meeting.

The AcSB also directed staff to consider a research project on combinations that occur between enterprises within the scope of Part II of the Handbook.


The AcSB continued discussing the proposals to address stakeholders’ issues about insufficient guidance in Section 3400, Revenue. The Board discussed an updated draft of the proposed guidance, transitional provisions, and the proposed effective date of the amendments.

The AcSB also considered a communication plan for a forthcoming exposure draft and decided on its outreach activities with stakeholders.

The AcSB directed staff to begin the balloting process for the proposals.

The AcSB plans to issue the exposure draft no later than the second quarter of 2019.

Standards for Private Enterprises

Related Party Transactions

The AcSB continued its discussion on the approaches to address concerns stakeholders have raised relating to Section 3840, Related Party Transactions. The Board considered its Private Enterprise Advisory Committee’s feedback on using the measurement concepts of carrying value and exchange amount in practice and if a more simplified measurement model would be an enhancement.

The AcSB also discussed the need for a research project to better understand business combinations between related parties. Consequently, the Board directed staff to undertake a research project on related party combinations and will consider a project proposal at its March 2019 meeting.

Standards for Not-for-Profit Organizations

Contributions – Revenue Recognition and Related Matters

The AcSB continued discussing the topics to consider in the development of the consultation paper. The Board considered its Not-for-Profit Advisory Committee’s feedback and discussed alternatives regarding the following contribution types:

  • capital asset contributions;
  • endowments;
  • pledges; and
  • bequests.

The AcSB also discussed a proposed project timeline and will continue its discussions at its May 2019 meeting.

Due Process

AcSB 2018-2019 Interim Performance Report

The AcSB discussed an initial draft of its performance report for the year ending March 31, 2019. It will present its draft report to the Accounting Standards Oversight Council’s (AcSOC) Performance Review Committee in accordance with the Board’s governance procedures. The Board expects to approve its performance report in April 2019, after considering the Council’s and the Committee’s input and updating the report for the Board’s activities up to March 31, 2019.

AcSB 2019-2020 Annual Plan

The AcSB continued discussing a draft of its annual operating plan for the year beginning on April 1, 2019. The discussion included consideration of the projects related to the standards for private enterprises and not-for-profit enterprises that the Board may undertake, as well as the its role in influencing the development of new IFRS Standards.

The AcSB will present its draft annual plan to AcSOC and the Performance Review Committee in accordance with the Board’s governance procedures. The Board plans to approve its annual plan in March 2019, after considering the Council’s and the Committee’s input.

PSAB Consultation Paper

The AcSB received a presentation from the Public Sector Accounting Board (PSAB) Chair on the PSAB’s proposed approach to its Government Not-for-Profit Consultation Paper.