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AcSB Decision Summary – January 19-20, 2022

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

Post-implementation Review of IFRS 9

The AcSB discussed its draft response letter to the International Accounting Standards Board’s (IASB) Request for Information, "Post-implementation Review: IFRS 9 Financial Instruments, Classification and Measurement,” and provided staff with comments to incorporate into the final letter. The Board will submit its response letter by the January 28, 2022, deadline.

Subsidiaries without Public Accountability

The AcSB discussed the status of its response letter to the IASB’s Exposure Draft, “Subsidiaries without Public Accountability: Disclosures.” The Board also provided staff with comments to incorporate into the final letter. The Board encourages stakeholders to share their views on the Exposure Draft by submitting their response letters to the IASB by January 31, 2022, with a copy to the AcSB.

Standards for Not-for-Profit Organizations


The AcSB finished discussing stakeholders’ feedback on the Consultation Paper, “Contributions – Revenue Recognition and Related Matters.” The Board considered feedback from stakeholders and from its Not-for-Profit Advisory Committee on the topic of special types of contributions, including capital asset contributions, endowments, contributed materials and services, and bequests.

The Consultation Paper included the following topics:

  • pledges;
  • capital asset recognition exemption;
  • recognition of revenue from contributions;
  • fund accounting;
  • presentation of net assets;
  • disclosure of restricted cash; and
  • special types of contributions.

The AcSB also discussed next steps for the project. Based on the feedback, the Board decided to move forward with a project that explores the approach proposed in the Consultation Paper that recognizes revenue from contributions based on the type of contribution and its characteristics. The Board will discuss a project proposal for developing an exposure draft at its meeting in March 2022.

Standards for Private Enterprises and Not-for-Profit Organizations

Cloud Computing Arrangements

The AcSB continued discussing the proposed Accounting Guideline. The Board discussed some wording clarifications to its proposals, including the following:

  1. For expenditures on implementation activities that are capitalized using the proposed accounting policy choice when the cloud computing arrangement is a software service, clarify the period over which such expenditures shall be expensed. The Board discussed various factors an enterprise should consider when determining this period.
  2. Clarify that when an enterprise applies the simplification approach, it is permitted to expense all intangible elements in a cloud computing arrangement, irrespective of the enterprise’s existing accounting policy for expenditures on internally generated intangible assets.

The AcSB also discussed the illustrative examples in the proposed Accounting Guideline. The Board decided to use one fact pattern illustrating the application of the Accounting Guideline when an enterprise:

  1. chooses to apply the simplification approach to expense as incurred all intangible elements in a cloud computing arrangement; and
  2. chooses not to apply the simplification approach and, instead, chooses to capitalize qualifying expenditures on implementation activities when the arrangement is a software service.

The AcSB will review a revised draft of the proposed Accounting Guideline and other information in an exposure draft based on its comments. The Board plans to issue an exposure draft in the first quarter of 2022, with a 90-day comment period.

Relevance of Financial Reporting

Disclosure of Climate-related Matters

The AcSB discussed a revised draft of its response letter to the Canadian Security Administrator’s (CSA) proposed National Instrument 51-107, Disclosure of Climate-related Matters.

The AcSB reaffirmed the key points to include in its response letter to the CSA and provided staff with comments to incorporate into the final letter. The Board will submit its response letter by the February 16, 2022, deadline.

Independent Standard-Setting Review

The AcSB discussed the Independent Review Committee on Standard Setting in Canada’s Consultation Paper. The Committee’s purpose is to conduct a review of the governance and structure for establishing Canadian accounting and assurance standards and to identify what might be needed for the future, including sustainability standards. The Consultation Paper focuses on the overall objective of considering what changes might be appropriate to ensure that the national standard-setting system is independent, robust, world-class and responsive to stakeholders’ needs. The Board encourages stakeholders to share their views on the Consultation Paper directly with the Committee by March 31, 2022.

Due Process

AcSB’s Advisory Committee

IFRS® Discussion Group

At its meeting on December 15, 2021, the IFRS Discussion Group discussed the IASB’s Post-implementation Review of IFRS 9, the IASB’s Exposure Draft, “Non-Current Liabilities with Covenants,” amendments to International Accounting Standard 16 Property, Plant and Equipment related to proceeds before intended use, accounting for a renewable energy credit associated with a virtual power purchase agreement, and the IFRS® Interpretation Committees’ Tentative Agenda Decision, “Cash Received via Electronic Transfer as Settlement for a Financial Asset (IFRS 9).” No further action was recommended by the Group to the AcSB on these topics.

AcSB 2022-2023 Annual Plan

The AcSB continued discussing its draft annual plan for the year beginning on April 1, 2022. The discussion included the reassessment of the Board’s key risks.

The AcSB will present its draft annual plan to the Accounting Standards Oversight Council (AcSOC) and AcSOC’s Performance Review Committee in February. The Board will approve its annual plan in March 2022, after considering the Council’s and Committee’s input.

Performance Report

The AcSB discussed its draft interim performance report for the period ending December 31, 2021. This discussion was in preparation for a February meeting with AcSOC’s Performance Review Committee. The Board expects to approve the final performance report in April 2022, after considering and the Committee’s input, and updating the report for the Board’s activities up to March 31, 2022.

Communications Strategy

The AcSB discussed the draft communications strategy for the Standards Group, focusing on the Board. No decisions were made. The Board will continue its discussion on its communication strategy at its March meeting.

Draft Strategic Plan

The AcSB discussed a revised draft of its 2022-2027 Strategic Plan and feedback received on the draft from AcSOC. The Board will discuss the next draft at its meeting in February 2022. The Council and its Performance Review Committee will also discuss the next draft at their meetings in February 2022.

The AcSB expects to issue the final 2022-2027 Strategic Plan on March 31, 2022.

Strategic Plan Research

The AcSB continued its discussion on research regarding its proposed strategies related to the preface and scalability, as set out in the 2022-2027 Draft Strategic Plan. This included a discussion of the project plan and research objectives. The Board received an update on the research conducted since its meeting in October 2021 and provided the staff with direction on additional research. The Board will continue its discussion on this research at its meeting in March 2022.

Due Process Compliance

The AcSB approved a report to AcSOC on its compliance with due process.