Decision Summary – September 20-21, 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.

Connecting with our stakeholders is important to us. We held our meeting in Montreal, in conjunction with roundtables on our Agriculture Exposure Draft and stakeholder-feedback sessions on the Draft Framework for Reporting Performance Measures, both of which were in English and French.

IFRS® Standards

Financial Instruments with Characteristics of Equity

The Board received an education session on the International Accounting Standards Board's (IASB’s) Discussion Paper, “Financial Instruments with Characteristics of Equity.” The Board invites stakeholders to the roundtable discussions to be held the week of October 15. To attend, stakeholders should complete the registration form.

Insurance Contracts

The Board received an update on international developments and Canadian implementation concerns with IFRS 17. The implementation concerns relate to reinsurance, mutual entities, contractual service margin amortization and balance sheet presentation requirements. The Board will continue to actively monitor global developments and has requested an update at each meeting.

Standards for Private Enterprises and Not-for-Profit Organizations


The Board continued its discussion on the scope of transactions subject to the guidance to be provided on the initial measurement of a combination. The Board directed the staff to research the nature of the transactions that could be affected by the proposed guidance.

The Board also discussed any “day-two” implications that could arise from the initial measurement of a combination. The Board confirmed that the scope of this project would be limited to the initial measurement of a combination and its related disclosures.

Standards for Not-for-Profit Organizations

Contributions – Revenue Recognition and Related Matters

The Board agreed that input should be sought from stakeholders on the following topics for the consultation paper:

  • restricted contributions;
  • endowment contributions;
  • pledges;
  • bequests;
  • contributed materials and services;
  • $500,000 capital assets size exemption; and
  • presentation.

Data on Private Enterprises in Canada

The Board considered updated data on private enterprises in Canada, and discussed additional data needed to assist the Board in understanding who uses accounting standards for private enterprises.

Not-for-Profit Advisory Committee

The Board received feedback from the Not-for-Profit Advisory Committee’s meeting on September 10, 2018. The topics covered included combinations, contributions, financial instruments – hedge accounting, and revenue.

Standards for Private Enterprises

Private Enterprise Advisory Committee

The Board received feedback from the Private Enterprise Advisory Committee’s meeting on September 11, 2018. The topics covered included combinations, financial instruments – hedge accounting, related party transactions, revenue, use of Part V of the CPA Canada Handbook and the Draft Framework for Reporting Performance Measures.

Enhancing the Relevance of Financial Reporting

Framework for Reporting Performance Measures

The Board continued to consider feedback received on the Draft Framework for Reporting Performance Measures from consultations in Canada and internationally. The Board discussed some proposed revisions to the draft Framework that would result in enhancing the transparency, consistency and quality of performance measures reported by for-profit and not-for-profit entities. Additional feedback from consultations completed in September as well as surveys and responses received by the October 1, 2018, comment deadline will be considered this fall.

The Board plans to issue a revised draft Framework in December 2018 to make this voluntary guidance available for entities when developing and reporting year-end performance measures. Based on feedback received, many stakeholders think that this best-practice guidance can help management, directors, users and others improve their practices or identify items to discuss as part of enhancing the reporting of financial and operational performance measures.

Due Process

The Quebec CPA Order

The Board received a presentation from Geneviève Mottard, CEO of the Quebec CPA Order, on its role in protecting the public, in supporting its members and enhancing their visibility. The discussion led to a better understanding of the Order’s priorities and the profile of its members. Ms. Mottard and the Board noted how both organizations work together in involving their members in the standard-setting activities and supporting them in applying standards.

French Translation

The Board considered how the processes of CPA Canada's Language Services support the translation of its standards and other materials. The Board highlighted its objectives of using plain language in communication-type materials and issuing quality materials in both French and English on a timely basis.