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AcSB Decision Summary – September 9, 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

Primary Financial Statements

The AcSB discussed its draft response letter to the International Accounting Standards Board’s Exposure Draft, “General Presentation and Disclosures,” and provided staff with comments to incorporate into the final letter. The Board will submit its response letter by the September 30, 2020, deadline.

Accounting Standards for Private Enterprises and Not-for-Profit Organizations

Cloud Computing

The AcSB received feedback from its Private Enterprise Advisory Committee and Not-for-Profit Advisory Committee on the issues relating to cloud computing arrangements. Based on the feedback, the Board tentatively decided that the two main issues to consider are:

  • the customer’s accounting for fees paid in a cloud computing arrangement; and
  • accounting for the related implementation costs.

The AcSB noted that these arrangements are prevalent for both private enterprises and not-for-profit organizations. The Board discussed various options to address these two issues, such as producing educational materials or undertaking standard-setting activities. The Board directed staff to gather more information on the various cloud computing arrangements occurring in practice to better inform its decision on the appropriate way forward.

Accounting Standards for Private Enterprises

Annual Improvements

The AcSB discussed the Private Enterprise Advisory Committee’s feedback on the issues addressed in the 2021 annual improvements cycle and provided comments on the draft exposure draft.

The AcSB decided to remove one issue from the annual improvement cycle related to the measurement of investments in a related party transaction accounted for in accordance with Section 1591, Subsidiaries, Section 3051, Investments, or Section 3056, Interests in Joint Arrangements. The Board decided this issue is outside the scope of an annual improvement and will consider whether a separate project is warranted in the context of its Part II priorities. 

The AcSB also decided to propose that the amendments be effective for fiscal years beginning on or after January 1, 2022, with early application permitted. The Board plans to issue the Exposure Draft, “2021 Annual Improvements,” in Q4 2020.

Accounting Standards for Not-for-Profit Organizations


The AcSB continued deliberating stakeholders’ responses on the Exposure Draft, “Combinations – Initial Measurements and Related Disclosures.” The Board also considered the Not-for-Profit Advisory Committee’s feedback and tentatively decided to:

  • direct not-for-profit organizations (NFPOs) to Section 1582, Business Combinations, and Section 4410, Contributions – Revenue Recognition, when a for-profit enterprise is contributed to an NFPO;
  • require all combinations of NFPOs under common control to be accounted for as mergers;
  • add an illustrative example and clarify the other illustrative examples to better distinguish a merger from an acquisition; and
  • clarify that a reduction in client communities of some but not all of the NFPOs that are combining is indicative of an acquisition

In situations where a combination is to be accounted for as an acquisition, the Board tentatively decided to:

  • allow judgment for determining the fair value of deferred balances on acquisition while the AcSB continues its Contributions project; and
  • clarify that the cost of collections acquired is the fair value of the collections at the acquisition date.

The AcSB also reiterated the importance of this project in the current environment and will continue its deliberations on this topic in October 2020.

Implementation of Accounting Standards for Not-for-Profit Organizations

The AcSB received feedback from its Not-for-Profit Advisory Committee on implementation questions raised during the COVID-19 pandemic relating to:

  • lease accounting;
  • impairment;
  • going concern; and
  • subsequent event disclosure requirements.

The Committee made recommendations about whether any standard setting or additional implementation support is needed for these issues.

In July 2020, the AcSB decided to issue an exposure draft to amend Section 3065, Leases, to provide relief on accounting for COVID-19-related lease modifications. The exposure draft is expected to be issued in September 2020. The Board discussed the Committee’s feedback on the other issues and decided no further standard setting is needed at this time.

The AcSB decided to continue to provide implementation support and will highlight the financial reporting considerations related to these issues at the upcoming domestic accounting standards update webinar on November 10, 2020 (English) and November 16, 2020 (French). The Board also decided to discuss the topic of impairment further with the Committee in Q1 2021 to assess whether any further implementation support is needed.