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 the International Accounting Standard Board’s (IASB) Rate-regulated Activities project. At a future meeting, the AcSB will receive an education session on the prospective IFRS Accounting Standard Regulatory Assets and Regulatory Liabilities, which the IASB expects to issue in the second half of 2025.
Post-implementation Review of IFRS 16 Leases
The AcSB discussed its plan to respond to the IASB’s Request for Information (RFI), “Post-implementation Review of IFRS 16 Leases.” The IASB’s RFI was issued on June 17, 2025, and comments are due to the IASB on October 15, 2025. The AcSB plans to use feedback gathered from its advisory committees to inform its response. Read more on the Board’s project page.
Dynamic Risk Management
The AcSB received an education session on, and discussed its plan to respond to, the IASB’s forthcoming exposure draft for its Dynamic Risk Management project, expected in Q4 2025. The Board approved outreach and communications plans, which include the formation of a Dynamic Risk Management Working Group to provide input on key focus areas for the response letter to the IASB. The AcSB’s plan also includes targeted outreach with representatives from industries that are expected to be impacted by these proposals.
IASB Fourth Agenda Consultation
The AcSB discussed the objectives, scope, and preliminary findings of research examining potential conflicts between achieving the objective of IFRS 3 Business Combinations at the acquisition date and the usefulness of financial information in the post-combination period. The Board agreed to further develop this research to explore potential solutions that may inform its response to the IASB’s Fourth Agenda Consultation.
Standards for Private Enterprises
Detailed Review of ASPE
The AcSB reviewed a revised draft of its consultation paper for the Detailed Review of Accounting Standards for Private Enterprises project. The Board incorporated feedback from the May AcSB meeting in this draft, as well as a final batch of topics discussed with its Advisory Committees.
The Board plans to review a near-final draft along with a proposed outreach plan at its July 2025 meeting. The Board expects to release the consultation paper in September 2025.
Standards for Not-for-Profit Organizations
Reporting Controlled and Related Entities
The AcSB discussed options to improve the definition of control and related guidance in Section 4450, Reporting Controlled and Related Entities by Not-for-Profit Organizations to be explored in a consultation paper. The Board’s consideration of the options to improve the control model include:
- the approach to the control model in other jurisdictions;
- how feedback received on the challenges associated with the control model in Section 4450 would be addressed by each option;
- the potential opportunities and roadblocks associated with each option; and,
- how the options achieve the purpose of the project to improve financial statement transparency.
At its September 2025 meeting, the Board will discuss additional topics for its consultation paper, including the definitions of significant influence and economic interest, and accounting for joint ventures. The Board plans to issue a consultation paper in the first half of 2026.
Standards for Private Enterprises and Not-for-Profit Organizations
Relief from Recognition of Intangible Assets and Amortization of Goodwill
The AcSB discussed a draft of its exposure draft related to the Subsequent Measurement of Goodwill and Acquired Intangible Assets project. The proposals will offer entities relief from separate recognition of intangible assets acquired in a business combination and will allow them to amortize goodwill.
The AcSB also discussed the accounting for operating leases acquired in a business combination with terms that are favourable or unfavourable. The Board tentatively decided to propose an amendment to clarify that an intangible asset relating to a favourable contract should only be recognized separately from goodwill when an entity does not elect the relief. The Board tentatively decided that a liability related to an unfavourable component of a lease acquired in a business combination is beyond the scope of this project. This type of liability should continue to be recognized according to current practice, even if an entity elects the relief from recognition of intangible assets.
The AcSB also discussed the proposed effective date and tentatively decided that the exposure draft proposals apply for annual periods beginning on or after January 1, 2029, with earlier application permitted.
The AcSB agreed that due process has been followed in developing the exposure draft and gave permission to start the final balloting process. The Board plans to issue the exposure draft in the fourth quarter of 2025 with a 110-day comment period.
Relevance of Financial Reporting
FASB Agenda Consultation
The AcSB reviewed its response letter to the U.S. Financial Accounting Standards Board’s (FASB) Agenda Consultation. The letter emphasizes the need to enhance the usefulness of financial information for users and to reduce differences in global financial reporting outcomes. Key areas of focus include:
- Enhancements to the statement of cash flows
- Addressing inconsistencies between Accounting Standards Codification® (ASC) 805 Business Combinations and other standards
- Improving disclosures
- Amending the recognition of gains and losses on defined benefit plans
Board members approved the issuance of the response letter, pending changes discussed during the meeting.
Annual Sustainability Education Session
The AcSB received an education session on sustainability topics focused on recent regulatory changes in Canada, Europe, and the United States. The Board will continue to monitor sustainability issues facing Canadian entities.
Governance
AcSB’s Strategic Plan
The AcSB received education sessions on the following topics:
These sessions were intended to inform the AcSB on the activities of other standard setters and how standards are evolving. No decisions were made.
Due Process
AcSB’s Advisory Committees and Working Groups
IFRS® Accounting Standards Discussion Group
The AcSB received an update on the May 14, 2025, IFRS® Accounting Standards Discussion Group meeting. At this meeting, the Group discussed financial reporting considerations related to tariffs and IFRS 18 Disclosures About Management-defined Performance Measures (MPMs) and more.
Canadian Private Enterprise User Advisory Committee
The AcSB received an update on the May 22, 2025, Canadian Private Enterprise User Advisory Committee meeting. At this meeting, the Committee discussed inventory-related disclosures and retractable or mandatorily redeemable shares.
Medium and Small Practitioners Advisory Committee
The AcSB received an update on the May 28, 2025, Medium and Small Practitioners Advisory Committee meeting. At this meeting, the Committee discussed the Detailed Review of ASPE, retractable or mandatorily redeemable shares, financial statement concepts, and more.
Pension Plan Advisory Committee
The AcSB received an update on the June 3, 2025, Pension Plan Advisory Committee meeting. At this meeting, the Committee discussed the Part IV Work Plan Survey, an application question regarding derecognition of financial liabilities, the International Ethics Standard Board for Accountants Consultation Paper, and more.
AcSB’s Due Process Manual
The AcSB continued its discussion on proposed changes to its Standard-setting Due Process Manual (“the Manual”), first presented at its April 2025 meeting. The changes clarify certain processes to better support the Board in responding to interested and affected party needs on a timely basis. The Board provided feedback on proposed changes in the Manual related to the following processes:
- post-implementation review;
- re-exposure;
- strategic and annual planning; and
- project prioritization.
The AcSB reviewed an initial draft of the Manual. The Board will approve the final draft of the Manual at its September 2025 meeting. Following its meeting, the Board will seek approval of the proposed changes from the Reporting and Assurance Oversight Council.