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 interested and affected parties and can be reached anytime through our online form.
IFRS® Accounting Standards
Rate-regulated Activities
The AcSB received an update on international activities, including the International Accounting Standards Board’s (IASB) planned implementation activities relating to IFRS 20 Regulatory Assets and Regulatory Liabilities, which the IASB issued in May 2026. The AcSB balloted IFRS 20 and plans to incorporate it into Part I of the CPA Canada Handbook – Accounting in December 2026.
The following non-authoritative guidance will be made available in the Handbook in Q1 2027:
- The IASB’s Basis for Conclusions and Illustrative Examples that accompany IFRS 20, to support implementation of the Standard in Canada.
- The IASB’s Basis for Conclusions and Implementation Guidance that accompany IFRS 1 First-time Adoption of International Financial Reporting Standards, to support entities that may transition from another accounting framework to IFRS Accounting Standards because of the issuance of IFRS 20.
Post-implementation Review of IFRS 9 – Hedge Accounting
The AcSB discussed its plan to respond to the IASB’s Request for Information (RFI), “Post-implementation Review of IFRS 9 and IFRS 7 Hedge Accounting Requirements.” The IASB issued the RFI on September 28, 2026, with comments due on January 26, 2027. The AcSB approved a focused outreach plan to inform its response. The plan includes targeted outreach with entities and users that have relevant experience with the IFRS 9 and IFRS 7 hedge accounting requirements, together with feedback obtained through prior outreach activities and consultations with its advisory committees.
Canadian Securities Administrators (CSA) Document for Comment
The AcSB discussed the CSA Consultation Paper 51-406 Modernizing the Regulation of Public Companies and decided to respond to the document for comment.
Risk Mitigation Accounting
The AcSB received a project update on the IASB’s Exposure Draft, “Risk Mitigation Accounting.” The IASB issued the Exposure Draft on December 3, 2025, and extended the comment period to November 30, 2026. The Exposure Draft proposes a new risk mitigation accounting model and enhanced disclosure requirements to more faithfully reflect how entities manage repricing risk in the financial statements, and to provide financial statement users with more useful information. The AcSB will continue its consultation with its Risk Mitigation Accounting Working Group to inform its response letter to the IASB.
Standards for Private Enterprises
Detailed Review of ASPE
The AcSB discussed a draft non-authoritative resource on impairment. The resource is intended to clarify the sequential steps in the end-to-end impairment process and highlight the consideration of other relevant standards. The Board plans to discuss the draft resource with its Private Enterprise Advisory Committee and its Medium and Small Practitioners Advisory Committee in October 2026.
The AcSB also discussed a draft project summary on its Consultation Paper, “Detailed Review of Accounting Standards for Private Enterprises.” The project summary outlines key messages heard on the issues and proposals set out in the Consultation Paper, the Board’s response to feedback, the categorization of each issue, and the next steps in the project.
The AcSB expects to publish the project summary in the first quarter of 2027.
Guidance Framework – Acquisition of Pharmacy and Related Intangible Assets
The AcSB discussed and considered input from its Medium and Small Practitioners Advisory Committee and Private Enterprise Advisory Committee on an application question regarding the accounting treatment of prescription files acquired in a business combination of a pharmacy in accordance with Part II of the CPA Canada Handbook – Accounting Standards for Private Enterprises.
The question was whether the acquired prescription files meet the separability criterion under Section 1582, Business Combinations, and therefore qualify for recognition as an identifiable intangible asset. The transfer of prescription files is governed by legal and regulatory requirements, which may vary across jurisdictions. The application question referenced paragraph 1582.A26, which provides that a customer list acquired in a business combination may not meet the separability criterion when confidentiality requirements or other agreements prohibit the sale, lease, or exchange of customer information.
The AcSB assessed whether the criteria in its Guidance Framework were met to determine if additional guidance or standard setting is needed to address the issue. Committee members observed that, in the scenario presented, prescription files can be transferred when the applicable legal and regulatory requirements are met. Members generally viewed those requirements as regulating, rather than prohibiting the transfer of prescription files. Based on the feedback from the committees, the Board noted that diversity in practice is not observed when the guidance in Section 1582 is applied to this transaction. Accordingly, the Board concluded that the issue did not meet the criteria and that no further action is needed at this time.
Narrow-scope Amendment – Derecognition of Financial Liabilities
The AcSB approved the issuance of the exposure draft and related communications and outreach activities for its Derecognition of Financial Liabilities project. The Board plans to issue the exposure draft in November 2026, with comments due on January 22, 2027.
Related Party Transactions Research
The AcSB discussed issues identified through its research project on related party transactions, including feedback from its advisory committees and review of approaches in other jurisdictions.
The AcSB directed staff to conduct targeted outreach with users, preparers, and practitioners to identify additional issues and better understand the nature, prevalence, and underlying causes of the challenges arising from the current guidance.
The results of the outreach will inform the AcSB’s consideration of potential improvements to the related party transaction guidance and the future direction of the project.
Standards for Not-for-Profit Organizations
Contributions
The AcSB reviewed a pre-ballot draft of its exposure draft for the Contributions - Revenue Recognition and Related Matters project. The Board provided feedback to be incorporated into the final draft, which it plans to ballot offline in October 2026. The Board also discussed and approved a communications and outreach plan for the exposure draft.
The AcSB agreed that due process had been followed in developing the exposure draft and gave permission to begin the final balloting process. The Board expects to release the exposure draft in mid-November 2026, with an approximately 140-day comment period.
Standards for Private Enterprises and Not-for-Profit Organizations
Financial Statement Concepts
The AcSB discussed a revised exposure draft for its Financial Statement Concepts project. The exposure draft proposes a new conceptual framework for Part II of the CPA Canada Handbook – Accounting Standards for Private Enterprises and Part III of the CPA Canada Handbook – Accounting Standards for Not-for-Profit Organizations. The Board incorporated feedback from the May 2026 AcSB meeting into the draft.
The Board plans to ballot the final draft at its November 2026 meeting and expects to issue the exposure draft in 2027.
For more information on the Financial Statement Concepts project, read “What You Need to Know about Financial Statement Concepts.”
Standards for Private Enterprises, Not-for-Profit Organizations, and Pension Plans
2026-2027 Package of Minor Amendments
The AcSB approved the issuance of the exposure draft for the 2026-2027 Package of Minor Amendments.
The Board decided to retain the following topics in the Package of Minor Amendments exposure draft:
- Accounting policy disclosure requirements – The AcSB supported retaining the proposed amendment in Section 1505, Disclosure of Accounting Policies, to require entities to disclose “material” accounting policy information rather than “significant” accounting policies.
- Definition of accounting estimates – The AcSB supported retaining the proposed amendment to Section 1506, Accounting Changes, to clarify the definition of accounting estimates and help distinguish changes in accounting estimates from changes in accounting policies and error corrections.
- Debt modifications – The Board supported retaining the proposed amendment to clarify that, when applying the “10 per cent” test in Section 3856, Financial Instruments, only fees exchanged between the borrower and lender are included in determining whether the terms of a new or modified financial liability are substantially different from the original financial liability.
The AcSB decided to remove one issue from the Package of Minor Amendments related to the consolidation of subsidiaries with non-coterminous year-ends in Section 1601, Consolidated Financial Statements. The Board agreed that this issue is outside the scope of a minor amendment and will consider whether a separate narrow-scope project is warranted in the context of its Part II priorities.
The AcSB will issue the Package of Minor Amendments exposure draft in November 2026, with comments due on January 22, 2027.
Standards for Pension Plans
Non-traditional Pension Plans
The AcSB discussed its research project on Non-traditional Pension Plans, including its preliminary research activities and feedback received from its Pension Plan Advisory Committee.
The Board will continue research on this topic with a focus on determining whether Section 4600, Pension Plans:
- requires clarification on how existing principles apply to non-traditional pension plans; and
- can be improved through enhanced disclosure requirements to provide users of financial statements with more information regarding non-traditional pension plans.
The Board will continue its research activities with the Pension Plan Advisory Committee and expects to receive a project update in Q2 2027.
Governance
AcSB’s Advisory Committees’ and Groups’ Terms of Reference and Statements of Operating Procedures
The AcSB continued its review of the Terms of Reference and Statements of Operating Procedures for its advisory committees and groups, which it performs at least once every three years. The Board approved revised versions of their Terms of Reference and ratified the committees’ and groups’ Statements of Operating Procedures, subject to the respective committees and groups adopting them at their next meetings.
The AcSB also considered input from its Academic Advisory Committee on alternative ways to better engage the academic community. The Board decided to shift how it engages with academics, including increasing its participation in academic conferences and events, conducting direct outreach to academics, and supporting research relevant to Canadian standard setting. As part of this shift, the Board decided to dissolve its Academic Advisory Committee.
AcSB’s Terms of Reference, Statement of Operating Procedures, and Due Process Manual
The AcSB commenced the review of its Terms of Reference, Statement of Operating Procedures, and Standard-Setting Due Process Manual, which it performs at least once every three years. A key focus of the current review is increasing collaboration with the other Canadian standard-setting boards overseen by the Reporting and Assurance Standards Oversight Council, while ensuring that these governance documents remain fit for purpose.
The AcSB will continue discussions on its Terms of Reference, Statement of Operating Procedures, and Standard-Setting Due Process Manual at its January 2027 meeting.
IFRS Foundation
The AcSB discussed the Exposure Draft, “Proposed Targeted Amendments to the IFRS Foundation Constitution.” The AcSB agreed to respond to the document for comment by the November 16, 2026, deadline.
Due Process
AcSB’s Advisory Committees and Working Groups
User Advisory Committee
The AcSB received an update on the July 16, 2026, User Advisory Committee meeting. At this meeting, the Committee discussed the results of the annual self-assessment survey of its members and the CSA’s Consultation Paper relating to burden reduction initiatives.
The Committee provided input on differences in users’ information needs for business combinations versus asset acquisitions, and whether accounting differences are warranted. Members also discussed how useful reported accounting information on earn-out arrangements is for decision-making and identified the challenges users face when interpreting and analyzing these arrangements.
In addition, the Committee provided input on the usefulness of information about risk management and hedge accounting. Members also discussed how technology and artificial intelligence (AI) are changing users’ consumption of financial information, as well as how users are applying AI. The discussion included opportunities and concerns related to comparability, accessibility, reliability, and disclosure expectations. Finally, committee members gave their feedback regarding the AcSB’s Draft Strategic Plan.
Medium and Small Practitioners Advisory Committee
The AcSB received an update on the July 22, 2026, Medium and Small Practitioners Advisory Committee meeting. At this meeting, the Committee discussed the accounting treatment of government grants for fixed asset purchases accounted for in accordance with Section 3800, Government Assistance.
Committee members provided input on challenges in practice in accounting for related party transactions. The Committee then discussed two Guidance Framework topics.
The first topic involved an application question regarding whether patient prescription files meet the separability criterion to be accounted for as an identifiable intangible asset in the acquisition of a pharmacy. The second topic involved the recognition, presentation, and disclosure of externally managed endowments and matching arrangements, where the funds must be maintained in perpetuity.
Private Enterprise Advisory Committee
The AcSB received an update on the July 23, 2026, Private Enterprise Advisory Committee meeting. At this meeting, the Committee provided input on the accounting treatment of government grants for fixed asset purchases accounted for in accordance with Section 3800, Government Assistance, and challenges in practice regarding related party transactions.
Academic Advisory Committee
The AcSB received an update on the August 20, 2026, Academic Advisory Committee meeting. At this meeting, the Committee provided input on the AcSB’s Draft Strategic Plan. Due to the decision by the AcSB to dissolve the committee, members also discussed other ways that the Board could engage with academics going forward.
Risk Mitigation Accounting Working Group
The AcSB received an update on the September 16, 2026, Risk Mitigation Accounting Working Group meeting. At this meeting, the Group discussed field testing progress, key findings, and implementation challenges. The Group also discussed key areas identified in the exposure draft proposals.
IFRS® Accounting Standards Discussion Group
The AcSB received an update on the September 17, 2026, IFRS® Accounting Standards Discussion Group meeting. At this meeting, the Group discussed when a communication qualifies as “public communication” for the purpose of identifying a management-defined performance measure under IFRS 18 Presentation and Disclosure in Financial Statements. The Group also discussed when a measure that includes hypothetical income and expenses can meet the definition of a management-defined performance measure under IFRS 18. Finally, the Group considered the implications of the IFRS 18 transition guidance that permits an entity to change its election upon initial application of the Standard. The Group also discussed recent amendments to the election to measure investments in associates or joint ventures at fair value through profit or loss.