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 continues to consider the evolving situation related to the COVID-19 pandemic. The Board will be responsive to environmental changes, assessing the impact to stakeholders as required.
The AcSB values input and feedback from stakeholders and can be reached anytime through our online form.
Interest Rate Benchmark Reform
The AcSB discussed the initial feedback received from stakeholders on the International Accounting Standards Board’s (IASB) Exposure Draft, “Interest Rate Benchmark Reform – Phase 2.” The Board also discussed the key points to raise in its response letter to the Exposure Draft that will be sent to the IASB by the May 25, 2020, deadline.
The AcSB continued discussing the review of disclosures relating to implementing IFRS 16 Leases, as disclosed in an entity’s 2019 annual financial statements. The Board directed staff to update the analysis of disclosures to include the effects of COVID-19 on the accounting for leases.
The AcSB also discussed its recent activities and those of the Financial Accounting Standards Board and the IASB relating to the effects of COVID-19 on the accounting for leases. The discussion included the IASB’s recent Exposure Draft, “COVID-19-Related Rent Concessions (Proposed Amendment to IFRS 16).” The IASB is expected to issue the final amendments to IFRS 16 by the end of May 2020. The AcSB expects to complete its endorsement process of the final IASB amendments and incorporate the amendments into Part I of the CPA Canada Handbook – Accounting on July 1, 2020. The amendments will be effective for annual reporting periods beginning on or after June 1, 2020.
Standards for Private Enterprises
Employee Future Benefits
The AcSB continued discussing feedback received on its Exposure Draft “Employee Future Benefits – Use of a Funding Valuation”. The Board discussed comments on the draft of the amendments to Section 3462, Employee Future Benefits, and the Basis for Conclusions. The Board will review the final draft of the amendments and Basis for Conclusions at an upcoming meeting in July 2020.
The AcSB had originally proposed an effective date for the amendments of January 1, 2021. In light of COVID-19 developments, the Board decided to change the effective date to years beginning on or after January 1, 2022. Early adoption of these amendments will be permitted.
Standards for Not-for-Profit Organizations
The AcSB discussed the comment period and the outreach plan for the Consultation Paper, “Contributions – Revenue Recognition and Related Matters.”
The AcSB decided to issue the Consultation Paper with an extended comment-period deadline of December 15, 2020, to allow stakeholders more time to respond in light of the COVID-19 pandemic. The Consultation Paper was issued on May 19, 2020.
The AcSB also discussed the outreach activities planned for obtaining feedback on the Consultation Paper and directed staff to revisit the timing of these outreach events. The Board decided that all outreach activities will be done virtually because of the COVID-19 pandemic.
Relevance of Financial Reporting
Proposed National Instrument (NI) 52-112 Non-GAAP and Other Financial Measures Disclosure
The AcSB discussed the draft response letter to the Canadian Securities Administrator’s Second Notice and Request for Comment – “Proposed NI 52-112 Non-GAAP and Other Financial Measures Disclosure.” The Board discussed the key messages to be included in its response letter and directed staff to update the draft response letter based on its comments. The Board will discuss the revised draft response letter before the June 29, 2020 deadline.
Board Advisory Committees
The AcSB received feedback on the discussions at recent meetings of its Academic Advisory Committee and IFRS® Discussion Group.