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AcSB Decision Summary – October 7, 2020

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 will respond to change and reprioritize when necessary, ensuring we can address implementation challenges and provide the information users may need in these unique circumstances.

The AcSB values input and feedback from stakeholders and can be reached anytime through our online form.

IFRS® Standards

COVID-19 Disclosure Review

This topic was deferred to the next AcSB meeting to permit time for the Board to deliberate comments on its Exposure Draft, “Leases.”

Insurance Contracts

The AcSB received an update on matters relating to IFRS 17 Insurance Contracts, including Canadian and international developments.

Accounting Standards for Private Enterprises


The AcSB deliberated stakeholders’ feedback on the Exposure Draft, “Leases.” Respondents generally supported the underlying principles in the Exposure Draft. The Board decided, subject to written ballot, to:

  • clarify that any rent concession that results in reduced lease payments must relate to payments that were originally due on or before December 31, 2021;
  • clarify that the condition to use the relief would still be met for deferrals of lease payments originally due before December 31, 2021, but are repaid after December 31, 2021; and
  • add a requirement to disclose the fact and the reasons for not applying the relief to all leases that meet the conditions of the practical expedient.

The AcSB recognizes the importance of this topic and is currently in the process of balloting. The Board plans to issue the final amendments in the first week of November 2020. The amendments apply to annual financial statements ending on or after December 31, 2020, with earlier application permitted, including in financial statements not yet authorized for issue.

Accounting Standards for Not-for-Profit Organizations


The AcSB discussed the remaining substantive stakeholder comments relating to disclosures, effective date and transition on the Exposure Draft, 
“Combinations – Initial Measurements and Related Disclosures.” The Board tentatively decided to:

  • separate the disclosure requirements for mergers occurring during a fiscal year and mergers that occur after year-end;
  • require disclosure of the method used to account for a combination; and
  • retain the effective date of fiscal years beginning on or after January 1, 2022.

The AcSB also discussed:

  • whether the difference between the consideration transferred and net assets acquired should be accounted for in net assets instead of in the statement of operations; and
  • if the transition provisions should permit an entity to restate a combination that occurred in a prior fiscal period.

The Board will seek the Not-for-profit Advisory Committee’s advice on these issues before making a final decision.

The AcSB continues to move this project forward as expeditiously as possible given the current environment. It plans to issue the final standard in March 2021. The Board expects to finalize its deliberations on this topic at its next meeting on October 27, 2020, before commencing the balloting process.

Due Process

Board Advisory Committees

The AcSB received feedback on the discussions at the September 23, 2020, meeting of its IFRS® Discussion Group.

Due Process Compliance

The AcSB approved a report to the Accounting Oversight Council on its compliance with due process. The report includes due process considerations related to the Board’s decision to issue its Exposure Draft, “Leases,” with a 14-day comment period.