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
Risk Mitigation Accounting
The AcSB received an education session on the IASB’s Exposure Draft, “Risk Mitigation Accounting.” The IASB’s Exposure Draft was issued on December 3, 2025, and comments are due on July 31, 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 plans to consult with its Risk Mitigation Accounting Working Group to inform its response letter to the IASB.
Standards for Private Enterprises
Guidance Framework – Cloud Computing
The AcSB discussed and considered input from its Canadian Private Enterprise User Advisory Committee on an application question raised regarding the disclosure requirements associated with Accounting Guideline AcG 20, Customer’s Accounting for Cloud Computing Arrangements in Part II of the CPA Canada Handbook – Accounting Standards for Private Enterprise.
In the scenario discussed, a submitter raised questions about how paragraphs 35(b) and 36(b)(i) of AcG 20 should apply to disclosing cloud computing costs recognized as an expense in a period. Specifically, they asked whether the Board intended this disclosure to cover all costs or only those related to implementation.
The AcSB did not reach a decision and will discuss this issue further at a future meeting.
Guidance Framework – Agriculture
The AcSB discussed questions that interested and affected parties have raised when responding to the Exposure Draft, “Amendments to Section 3041, Agriculture.” The Board analyzed these questions to determine if they meet its Guidance Framework criteria (that is, prevalence of the question, diversity in practice, and impact on users’ decisions) and considered input from its Agriculture Advisory Group in determining next steps. The questions raised generally fall into two categories:
- Broader application questions relating to productive biological assets:
i. Determining when there is a change to the carrying amount of productive biological assets managed on a collective basis.
ii. Introducing net realizable value as an option to measure productive biological assets.
iii. Introducing additional disclosure requirements for productive biological assets such as a continuity schedule.
- Other specific application questions:
i. Clarifying the meaning of short productive lives.
ii. Clarifying the scope exclusion for animals raised or purchased for competitive sport.
iii. Clarifying the scope exclusion for forestry.
iv. Accounting for costs incurred during the gestational period of an animal.
v. Accounting for agricultural inventories consumed in agricultural production.
vi. Allowing the use of fair market value to measure betterments to productive biological assets when such value approximates cost.
Broader application questions relating to productive biological assets
The AcSB directed staff to develop a non-authoritative resource to help explain the principle in Section 3041 regarding how to determine when there is a change to the carrying amount of productive biological assets managed on a collective basis. Agriculture Advisory Group members indicated that this question meets the Guidance Framework criteria and that developing non-authoritative guidance would support consistent application.
The AcSB also considered questions asking to introduce net realizable value as an option to measure productive biological assets and adding disclosure requirements. These questions do not raise issues that meet the Guidance Framework criteria. Considering feedback from the Agriculture Advisory Group, the Board decided no further action is needed at this time to address these questions raised.
Other specific application questions
Through their feedback, the Agriculture Advisory Group indicated that the application question about the meaning of “short productive lives” meets the Guidance Framework criteria. For example, some agricultural producers categorize laying hens as productive biological assets and others categorize them as agricultural inventories.
The AcSB noted that paragraphs 43-44 of Agriculture, Section 3041—Background Information and Basis for Conclusions explain certain production animals or plants (such as poultry and tomato vines) have short operating cycles. Therefore, biological assets held for use in a productive capacity but with short productive lives are included in the agricultural inventories category. An agricultural producer applying the definitions of productive biological assets and agricultural inventories would need to consider the use of its assets, including whether the assets are managed individually or on a collective basis.
Considering feedback from the Agriculture Advisory Group, the Board concluded that the explanation in the Basis for Conclusions continues to provide appropriate non-authoritative guidance to help an agricultural producer apply judgment.
For the remaining application questions, the AcSB noted that these questions do not raise issues that meet the Guidance Framework criteria. Considering feedback from the Agriculture Advisory Group, and the importance of preserving judgment in applying Section 3041 given diverse situations could be found across agricultural industries, the Board decided no further action is needed at this time to address these questions raised.
Next steps
At a future meeting, the AcSB will consider the Agriculture Advisory Group’s feedback on the non-authoritative resource regarding how to determine when there is a change to the carrying amount of productive biological assets that are managed on a collective basis.
Due Process
AcSB’s Advisory Committees and Working Groups
Pension Plan Advisory Committee
The AcSB received an update on the January 27, 2026, Pension Plan Advisory Committee meeting. At this meeting, the Committee discussed the Guidance Framework: Part IV of the CPA Canada Handbook – Accounting Standards for Pension Plans/IFRS 18 Presentation and Disclosure in Financial Statements, and feedback from the Board’s Work Plan Survey on Part IV of the Handbook. The Committee also provided input on the Board’s strategic direction for Part IV of the Handbook and other priorities for the upcoming plan year.