Decision Summary July 13, 2017

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.

International Financial Reporting Standards

IFRS Discussion Group

The Board discussed the Group’s recommendation from its May 2017 meeting to consider whether to refer the issue, “IFRS 16 and IAS 34: Variable Lease Payments,” to the International Accounting Standards Board (IASB) or IFRS Interpretations Committee. The Board agreed with the Group’s observation that there is tension in the requirements between paragraph 38(b) of IFRS 16 Leases and paragraph B7 of IAS 34 Interim Financial Reporting (i.e., accompanying illustrative example). The staff was directed to monitor how practice is developing to determine the potential effect this issue could have on entities upon the adoption of IFRS 16. The Board will continue to discuss this issue at a future meeting.

The Board considered a status update on the various activities undertaken on issues raised by the Group. For some issues, these activities included subsequent discussions by the Group to assess the significance of the issue in practice and international developments from the Board raising the issues through different channels. For example, the issue of “IAS 10: Subsequent Events Relating to Uncertain Tax Positions,” was raised to the IASB in the AcSB’s comment letter and was addressed in IFRIC 23 Uncertainty over Income Tax Treatments, issued in June 2017. The Board decided that no further work is needed on those issues. The Board also decided to continue monitoring the IASB and IFRS Interpretations Committee’s work plan to identify opportunities to raise the other issues.

Post-implementation Review (PIR) of IFRS 13 Fair Value Measurement

The Board discussed key points to include in its response letter to the IASB’s Request for Information on its “Post-implementation Review of IFRS 13 Fair Value Measurement.” As part of the discussion, the Board considered feedback obtained through the Board’s outreach on this topic.

The Board encourages stakeholders to share their views on the Request for Information by submitting comment letters to the IASB by September 22, 2017 with a copy to the AcSB. 

Principles of Disclosure

The Board discussed key points to include in its response letter to the IASB’s Discussion Paper, “Disclosure Initiative – Principles of Disclosure.” As part of the discussion, the Board considered stakeholder feedback obtained through the Board’s outreach to date on this topic.

The Board encourages stakeholders to share their views on the Discussion Paper by submitting comment letters to the IASB by October 2, 2017 with a copy to the AcSB.

Rate-regulated Activities

The Board was advised of the discussions on this topic at the meeting of the Accounting Standards Oversight Council on June 8-9, 2017. The Board will continue to monitor circumstances with respect to this project and decide on the ultimate publication date of its research paper.

Standards for Private Enterprises

Redeemable Preferred Shares Issued in a Tax Planning Arrangement

The Board considered the proposed drafting of the amendments and key areas of the Basis for Conclusions. The Board also decided that:

  • shares classified as liabilities on initial recognition cannot subsequently be reclassified as equity; and
  • shares classified as a liability should be measured at the redemption amount.

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

The Board directed staff to begin the balloting process for the proposals and will issue a re-exposure draft no later than September 30, 2017.  

Financial Instruments – Narrow-scope Amendments

The Board considered feedback received from its Not-For-Profit Advisory Committee on current practice of not-for-profit organizations on the topics in this project. 

The Board decided:

  • that the modification of all related party financial instruments will be accounted for as an extinguishment and that the modified instrument will be measured using the initial measurement concepts for related party financial instruments;
  • to amend the Section to clarify that an entity needs to disclose significant risks arising from derivatives although it need not be done separately;
  • that the amendments will be applicable to for-profit enterprises and not-for-profit organizations; and
  • on the transition requirements and the proposed effective date.

The Board directed the staff to conduct testing of the initial measurement proposals. The Board expects to issue an exposure draft no later than the fourth quarter of 2017.


The Board reviewed the progress made in deliberating the feedback received from stakeholders and its Agricultural Advisory Group. The Board directed staff to provide additional analysis on several issues, and develop a plan to conduct field-testing on the application of the proposals.

The Board will consider the remaining issues, as well as next steps and the project timeline to issue an exposure draft, at its next meeting.

Consultation on Priorities for Part II – Revenue

The Board discussed the results of the stakeholder survey relating to Section 3400, Revenue, in Part II of the Handbook, including the comments received. The Board was pleased with the number of survey responses and acknowledged the time and effort undertaken by respondents, and found the feedback valuable.
The Board also considered next steps and directed the staff to carry out additional activities, including:

  • considering the interaction of this Section 3400 work with the research work on Section 1000, Financial Statement Concepts and the Part III project on Contributions – Revenue Recognition and Related Matters; and
  • gathering feedback on revenue from users involved in private equity acquisitions of private enterprises with Canadian and U.S. operations currently applying Part II.

Due Process and Governance

AcSB 2016-2021 Strategic Plan

The Board continued its discussion on key themes of importance to stakeholders, considering what activities should be undertaken to:

  • improve the timeliness of standard-setting projects;
  • anticipate the future needs of stakeholders more quickly; and
  • further enhance the quality and relevance of the Board’s accounting standards and the resulting financial statements.

The Board will continue the discussion at future meetings, including consideration of the priority of and next steps for key initiatives.

Board Advisory Committees

The Board received feedback on the discussions at recent meetings of its Not-for-Profit Advisory Committee and User Advisory Council.


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.