Skip to main content


AcSB Decision Summary – March 8-9, 2023

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.


Crypto-asset Activities

The AcSB received an update on its crypto-asset research activities, including:

  • the Board’s thought-leadership series;
  • the formation of the Board’s Crypto Asset Working Group; and
  • the forthcoming international meetings where this topic will be discussed.

The AcSB continued its discussion on next steps to take on the accounting for a specific crypto-asset arrangement that is arising in Canada. The Board considered whether the fact pattern applicable to these types of crypto-asset arrangements meets the criteria for consideration by the IFRS® Interpretations Committee (IFRIC) and decided not to proceed with an IFRIC submission. Despite this decision, the Board remains committed to further exploring accounting for these types of arrangements. 

Standards for Not-for-Profit Organizations

Reporting Controlled and Related Entities

The AcSB received an update on initial research discussions held with the Not-for-Profit Advisory Committee on Section 4450, Reporting Controlled and Related Entities by Not-for-Profit Organizations.

The AcSB discussed its rationale for making changes to Section 4450. The Board also decided that their research activities will not include changes to the choice between consolidating and disclosing controlled entities for not-for-profit organizations, as described in paragraph 4450.14. Rather, the initial purpose of the research is to improve the transparency of financial statements for users regarding the relationship entities have with related and controlled entities.

The AcSB asked staff to further research definitions of control, significant influence, and economic interest, and to consider potential improvements to the disclosure requirements of related and controlled entities. These research topics will be discussed with the Not-for-Profit Advisory Committee at its next meeting.

Standards for Private Enterprises 

Related Party Combinations

The AcSB discussed stakeholder feedback from its outreach activities on its Exposure Draft, “Improvements to Accounting for Common Control Combinations." The Board discussed potential amendments to address feedback directly related to proposals in the Exposure Draft and feedback outside the scope of the current project. The Board will determine if additional future projects are needed based on this input.

In response to stakeholder comments directly related to the Exposure Draft, the AcSB tentatively decided to:

  • retain the proposal to clarify that all of Section 1582, Business Combinations applies to combinations accounted for in accordance with Related Party Transactions, paragraph 3840.44(a);
  • amend the definition of “business combination” in Section 1582 to include transactions accounted for in accordance with paragraph 3840.44(a);
  • allow the choice of retrospective restatement to be applied on a transaction-by-transaction basis;
  • retain the proposal to clarify that financial instruments acquired in a common control combination are accounted for in accordance with paragraph 3840.44; and
  • amend Financial Instruments, Paragraph 3856.11 to require subsequent measurement of financial instruments assumed in a transaction accounted for at the carrying amount in accordance with paragraph 3840.44(b), based on the initial measurement in the financial statements of the transferred business.

The AcSB will seek the advice of its Private Enterprise Advisory Committee at its May 2023 meeting and continue deliberations.

Standards for Private Enterprises and Not-for-Profit Organizations


The AcSB discussed feedback received from its Private Enterprise Advisory Committee and Not-for-Profit Advisory Committee on how to address stakeholders’ concerns with recent amendments to Section 3400, Revenue related to accounting for upfront non-refundable fees or payments. Stakeholders have indicated that the amendments sometimes result in information that is not decision-useful, particularly for entities collecting non-refundable initiation or life membership fees. In November 2022, the Board deferred the effective date of these amendments until January 1, 2025, with earlier application permitted.

The AcSB tentatively decided to issue an exposure draft to indefinitely defer the effective date of these amendments, with early application permitted, until the project on Evaluating the Preface is complete. The Board also tentatively decided to propose a new disclosure requirement in this exposure draft for entities recognizing non-refundable initiation and life membership fees in revenue up front. The Board will discuss these proposed solutions with its Private Enterprise Advisory Committee and Not-for-Profit Advisory Committees at their meetings in May.


The AcSB approved a non-authoritative resource that aims to help stakeholders apply the disclosure requirements for the net realizable value model in Section 3041, Agriculture. The Board based its development of this resource on stakeholder inquiries received in recent months on disclosure requirements in paragraphs 3041.88(c) and (d).

In approving this publication, the AcSB considered feedback provided from its Private Enterprise Advisory Committee and Agriculture Advisory Group on the application of the net realizable value model for agricultural inventories. The Board acknowledges the concerns expressed regarding the usefulness of the disclosures in paragraphs 3041.88(c) and (d). In accordance with the Board’s Due Process Manual, the Board has two years after the effective date of a new standard to determine whether a post-implementation review is needed. If a post-implementation review is conducted on Section 3041, the Board will consider the concerns raised at that time.

Standards for Pension Plans

Pension Plans

The AcSB discussed feedback from its Pension Plan Working Group on the next phase of issues to be addressed in Section 4600, Pension Plans. This discussion focused on ways to improve investment disclosures and the presentation and disclosure of investment management fees.

Pension plans currently disclose fair value information on their investments in accordance with the requirements in the Appendix to Section 4600. That Appendix contains superseded guidance from Part I of the CPA Canada Handbook – Accounting. As investment vehicles evolve, the AcSB wants to ensure that users of pension plan financial statements continue to get good information on those investments. The Board tentatively decided that pension plans should provide additional disclosures based on guidance in IFRS 13 Fair Value Measurement, as these disclosures could help improve transparency. In addition, as pension plans commonly hold interests in investment funds, the Board is considering whether it may be useful for pension plans to provide additional disclosures on the nature and extent of those interests, as well as the associated risks. The Board will seek more feedback on these matters from its Pension Plan Working Group in April 2023.

The AcSB also discussed disclosures for buy-in annuity contracts. In December 2022, Section 4600 was amended to introduce new measurement and disclosure guidance specific to buy-in annuity contracts. Those amendments are effective for fiscal years beginning on or after January 1, 2024, with earlier application permitted. Following the amendments, buy-in annuity contracts would no longer be measured at fair value, but rather at a value equal to the related benefit obligation adjusted for amounts receivable under the annuity contract that are not collectible. For investments that are financial instruments, paragraph 4600.32 requires pension plans to provide the disclosures required by IFRS 7 Financial Instruments: Disclosures as well as the fair value disclosures required by the Appendix to Section 4600. The Board thinks that, once the amendments take effect, paragraph 4600.32 disclosures may become less useful for buy-in annuity contracts. The Board will seek feedback from its Pension Plan Working Group in April 2023 and consider whether to amend the disclosure requirement in paragraph 4600.32 to scope out buy-in annuity contracts.

In addition, the AcSB considered feedback from its Pension Plan Working Group on risk disclosures for derivatives and decided that standard-setting action is not required.

The AcSB discussed initial research activities related to presentation and disclosure of investment management fees. The Board provided staff with feedback on next steps to research improvements to the investment management fee disclosure requirements in Section 4600. Staff will discuss research activities with the Pension Plan Working Group at its April 2023 meeting.

Relevance of Financial Reporting

Scaling the Standards

The AcSB discussed a final draft of its “Consultation Paper I – Exploring Scalability in Canada.” Subject to minor amendments, the Board approved the Consultation Paper and plans to issue it at the end of March 2023.

Sustainability Reporting

The AcSB received an update on developments in sustainability reporting, including activities of:

  • the International Sustainability Standards Board;
  • the Office of the Superintendent of Financial Institutions;
  • the Canadian Securities Administrators;
  • the U.S. Securities and Exchange Commission; and
  • other standard-setters in jurisdictions like the United Kingdom, Europe, Japan, and New Zealand.

The AcSB also received an update on the status of establishment of the Canadian Sustainability Standards Board. The Board will continue to monitor developments at both the domestic and international levels.

Due Process

AcSB’s Advisory Committees and Working Groups

User Advisory Committee

At its meeting on March 2, 2023, the User Advisory Committee discussed:

AcSB’s Annual Plan

The AcSB continued discussing its 2023-2024 Annual Plan for the operating year beginning April 1, 2023 and considered feedback from the Accounting Standard Oversight Council (AcSOC) and AcSOC’s Performance Review Committee. The Board decided on its priorities for next year, which include continued international influence and progress on domestic projects to enhance the relevance of accounting standards for each category of reporting entity in Canada. The Board also decided that the plan should be flexible, given ongoing sustainability reporting developments and the need to respond to emerging financial reporting matters.

The AcSB approved its 2023-2024 Annual Plan and plans to issue it on March 31, 2023.

AcSB’s Performance Report

The AcSB discussed a draft of its performance report for the 2022-2023 operating year. The Board expects to approve its performance report in April 2023 for presentation to AcSOC’s Performance Review Committee. The Committee will receive this report in May 2023 to assess the Board’s performance for the 2022-2023 operating year.

The AcSB also discussed a draft of its annual report for the 2022-2023 operating year and plans to issue the report in May 2023.