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.
Standards for Private Enterprises and Not-for-Profit Organizations
Cloud Computing
The AcSB discussed a summary of the accounting issues identified relating to the customer’s accounting for fees paid in a cloud computing arrangement and the accounting for the related implementation costs.
On the customer’s accounting for fees paid in a cloud computing arrangement, the AcSB discussed undertaking standard-setting activity to develop an Accounting Guideline to help entities navigate the application of existing guidance, including factors to consider in determining whether the arrangement includes a software intangible asset.
On the accounting for related implementation costs, the Board discussed the feedback from its Private Enterprise Advisory Committee and Not-for-Profit Advisory Committee on possible approaches to account for such costs when the cloud computing arrangement is a service contract.
At its meeting in June 2021, the AcSB will continue to deliberate implementation costs and the development of an Accounting Guideline.
Standards for Not-for-Profit Organizations
Contributions
The AcSB began discussing stakeholders’ feedback on the Consultation Paper, “Contributions – Revenue Recognition and Related Matters.” The Board considered feedback from comment letters, roundtables, and the Not-for-Profit Advisory Committee on the topic of asset recognition, which includes pledges and the capital asset recognition exemption.
The AcSB will continue to discuss the feedback on the Consultation Paper over a series of meetings. The Board plans to discuss the topics of recognition of revenue from contributions and special types of contributions at its meeting in May 2021.
Implementation of Accounting Standards for Not-for-Profit Organizations and Private Enterprises
The AcSB received feedback from its Not-for-Profit Advisory Committee and Private Enterprise Advisory Committee on implementation questions raised due to the COVID-19 pandemic relating to impairment, accounting for government-relief programs, and going concern. This feedback included the Committees’ recommendations about whether any additional implementation support is needed.
The AcSB decided to continue to provide implementation support and to raise awareness regarding going concern considerations.
Standards for Pension Plans
The AcSB discussed the feedback and recommendations from its Pension Plan Working Group on current pension accounting issues in Part IV of the CPA Canada Handbook – Accounting.
The AcSB considered whether to undertake a standard-setting project and what the scope would be. The Board directed staff to undertake additional research on the nature and size of defined benefit pension plans. The Board decided to seek additional input from the Pension Plan Working Group on potential solutions to address the issues raised in Part IV.
The AcSB will consider the research and advice from the Pension Plan Working Group at its meeting in June 2021.
Due Process
AcSB’s Advisory Committees
The AcSB received feedback on the discussions at recent meetings of its Academic Advisory Committee, IFRS® Discussion Group, Not-for-Profit Advisory Committee, and User Advisory Committee.
Academic Advisory Committee
Topics discussed at the March 5, 2021, meeting included rate-regulated activities; post-implementation reviews for IFRS 10, IFRS 11, and IFRS 12; going concern; and environmental, sustainability and governance.
IFRS Discussion Group
Topics discussed at the March 10, 2021, meeting included post-implementation reviews for IFRS 10, IFRS 11, and IFRS 12; rate-regulated activities; and business combinations under common control.
Not-for-Profit Advisory Committee
Topics discussed at the February 25, 2021, meeting included the 2021-2022 AcSB Annual Plan, cloud computing arrangements, contributions, and interbank offered rate reform.
User Advisory Committee
Topics discussed at the March 11, 2021, meeting included post-implementation reviews for IFRS 9, IFRS 10, IFRS 11, and IFRS 12; and crypto-asset activities.
AcSB’s 2021-2022 Annual Plan
The AcSB continued discussing its 2021-2022 Annual Plan for the operating year starting April 1, 2021 and considered feedback from the Accounting Standards Oversight Council (AcSOC). The Board decided that the plan be flexible to manage and adapt to changing stakeholder needs in this fluid environment, such as responding to COVID-19-related reporting matters. Also, given that financial reporting and sustainability reporting are interconnected, the Board will continue to focus on enhancing the relevance of financial and non-financial information to meet users’ evolving needs. The Board also decided to devote time to strategic research initiatives given that its Strategic Plan is being developed.
The AcSB approved its 2021-2022 Annual Plan and plans to issue it on April 1, 2021.
AcSB’s Strategic Plan
The AcSB reviewed a revised draft of its next Strategic Plan and continued discussing its core strategies, vision and mission statements, and the plan’s duration. The Board also discussed the proposed communications and outreach plans. The Board will discuss a draft of the Strategic Plan with AcSOC on April 14, 2021, then review a revised draft at its meeting on April 21, 2021.
The AcSB expects to issue its Draft Strategic Plan for comment in May 2021.