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
Proposed Amendments to the IFRS® Foundation Due Process Handbook
The AcSB discussed its draft response to the IFRS Foundation’s Exposure Draft, “Proposed Amendments to the IFRS Foundation Due Process Handbook.” The Exposure Draft was issued on December 19, 2024, with comments due March 28, 2025. In developing its response, the Board consulted members of its IFRS® Accounting Discussion Group and IFRS® Interpretations Committee (IFRIC) Support Group. The Board decided to provide several recommendations in its response letter, most notably to:
- improve the timeliness and effectiveness of the post-implementation review process; and
- clarify and enhance the due process associated with amending and withdrawing IFRIC Interpretations.
The AcSB approved its response for submission to the Trustees of the IFRS Foundation, subject to drafting changes.
Standards for Private Enterprises
Detailed Review of Accounting Standards for Private Enterprises (ASPE)
The AcSB continued its discussions on its detailed review of ASPE project. The Board discussed feedback received during the January 2025 meetings of the Private Enterprise Advisory Committee and Medium and Small Practitioners Advisory Committee, and the October 2024 meeting of the Not-for-Profit Advisory Committee. These discussions focused on key application issues related to Part II of the CPA Canada Handbook – ASPE, including revenue recognition, disposal of long-lived assets and discontinued operations, and related party transactions.
The AcSB also reviewed an initial draft of its consultation paper for the Detailed Review of Accounting Standards for Private Enterprises project, incorporating input from Board discussions and feedback from its Committees.
The remaining topics to be included in the consultation paper will be discussed at the Private Enterprise Advisory Committee and Medium and Small Practitioners Advisory Committee meetings in May 2025. The Board will review a revised draft of the consultation paper at its May 2025 meeting. The consultation paper is expected to be released in the second half of 2025.
Related Party Combinations
The AcSB deliberated feedback on its Exposure Draft, “Accounting for Common Control Combinations.” In response to the feedback, the Board tentatively decided to:
- revise the terminology used in the lead-in sentence of Related Party Transactions, paragraph 3840.44, to remove the reference to a “business combination”;
- clarify the options in paragraphs 3840.44(b)(i) and (ii) to indicate whether comparative information is required or not;
- add a new requirement to disclose the option chosen for each transaction accounted for in accordance with paragraph 3840.44(b); and
- finalize the effective date and transition provisions as set out in the Exposure Draft.
The AcSB also discussed comments raised on topics deemed to be out of scope for this narrow-scope amendment project. These comments have been compiled and may be considered for future standard-setting projects.
The AcSB will discuss a revised draft of the final amendments at its May 2025 meeting. The Board plans to issue the final amendments in Q3 2025.
Climate ASPE Awareness Series and Connectivity
AcSB staff presented their closing report, “What you Need to Know about Effects of Climate-related Risks and Opportunities on ASPE Financial Statements: Awareness Document.” The final publication in the ASPE Climate Awareness Series will be released in April 2025.
The AcSB received an update on the Canadian Sustainability Standards Board’s activities from the current fiscal year. The AcSB also discussed an example highlighting the potential connectivity between financial statements and sustainability disclosures.
Standards for Not-for-Profit Organizations
Contributions
The AcSB discussed feedback from its Not-for-Profit Advisory Committee on the plan for field-testing the preliminary proposals being considered as part of the project on Contributions – Revenue Recognition and Related Matters. The Board will use the field tests to:
- evaluate whether the preliminary proposals can be applied consistently in practice;
- identify any areas where further guidance or clarification is needed; and
- assess the effects of the proposals, including whether they provide useful information to financial statement users.
The AcSB approved a field-testing plan that will include:
- applying proposed guidance to case studies;
- recasting financial statements and transactions under the proposed guidance; and
- conducting targeted outreach to seek feedback on narrow aspects of the proposed guidance.
The field tests are scheduled to be completed between June and August 2025. Information on how interested parties can participate in the field test will be posted to the Contributions project page.
Reporting Controlled and Related Entities
The AcSB discussed feedback from its Not-for-Profit Advisory Committee on potential new approaches for determining relationships between related entities under Section 4450, Reporting Controlled and Related Entities by Not-for-Profit Organizations. The Board also received updates on additional potential improvements to Section 4450 discussed with the Committee, including:
- revisiting the existing definitions of control, significant influence, and economic interests in not-for-profit organizations;
- expanding specific disclosure requirements; and
- exploring opportunities to align the requirements in Parts II and III of the Handbook.
The AcSB discussed scenarios where expanded disclosure requirements would be useful and scenarios where the cost may exceed the benefit to financial statement users.
The AcSB decided to begin the development of a consultation paper for this project. The Board will discuss a preliminary draft of the consultation paper at its July 2025 meeting. The Board plans to issue a consultation paper in the second half of 2025.
Standards for Private Enterprises and Not-for-Profit Organizations
Relief from Recognition of Intangible Assets and Amortization of Goodwill
The AcSB continued discussing proposals for inclusion in a future exposure draft on its Subsequent Measurement of Goodwill and Acquired Intangible Assets project. The proposals will offer relief from recognizing intangible assets acquired in a business combination, as well as an accounting policy choice to amortize goodwill in Part II of the Handbook.
The AcSB discussed the project’s interaction with Section 1500, First-time Adoption in Part II of the Handbook and Section 1501, First-time Adoption by Not-for-Profit Organizations in Part III. The Board tentatively decided to propose a consequential amendment to paragraphs 1500.11 and 1501.12, requiring retrospective application of the accounting policy choices to use the relief and to amortize goodwill upon first-time adoption of ASPE.
The AcSB also discussed a sweep issue related to the retrospective application of goodwill amortization when there was an impairment of goodwill in a prior period and whether guidance was needed. The Board noted that an entity should have all the necessary information readily available to apply the policy retrospectively. Therefore, the Board tentatively decided not to provide more guidance in this scenario.
The AcSB will discuss a draft of its exposure draft at its June 2025 meeting. The Board plans to issue an exposure draft in Q4 2025.
Financial Statement Concepts
The AcSB discussed feedback from its Medium and Small Practitioners Advisory Committee, Not-for-Profit Advisory Committee, and Private Enterprise Advisory Committee on whether the elements of financial statements in the International Accounting Standards Board’s (IASB) Conceptual Framework for Financial Reporting would be fit for purpose for Canadian private enterprises and not-for-profit organizations (NFPOs), including the definitions
- of an asset;
- a liability; and
- income and expense.
The AcSB agreed with the Committees’ feedback that selective terminology and guidance from these definitions would be fit for purpose for Canadian private enterprises and NFPOs.
The AcSB also discussed the Committees’ feedback on whether there are any fatal flaws with the Board’s tentative decision to develop a single set of concepts for Parts II and III of the Handbook. The Committees did not identify any fatal flaws. The Board will continue to revisit this tentative decision as it discusses additional concepts topics at future meetings.
For more information on the background and benefits of the Financial Statement Concepts project, read “What You Need to Know about Financial Statement Concepts.”
Guidance Framework – Application Question
The AcSB continued discussing how recent amendments to IFRS 9 Financial Instruments affect Section 3856 Financial Instruments in Part II of the Handbook, regarding the derecognition of financial liabilities.
Although the IASB issued an amendment, there have been no changes to ASPE in this area. Therefore, the AcSB does not expect changes in how these transactions are being accounted for in Canada by entities applying Section 3856.
After considering input from its Private Enterprise Advisory Committee and Medium and Small Practitioners Advisory Committee, the AcSB concluded that further guidance would be helpful to clarify the requirements in ASPE.
The AcSB tentatively decided to provide guidance by issuing a narrow-scope amendment to Section 3856 through an annual improvement. The topic will be added to the list of potential projects to be addressed in the future and may be bundled with other unrelated minor amendments that meet the criteria for annual improvement.
Governance
AcSB’s Annual Plan
The AcSB continued discussing its 2025-2026 Annual Plan for the operating year beginning April 1, 2025, and considered feedback from the Reporting and Assurance Standards Oversight Council. The Board discussed its risk assessment and decided on its priorities for next year, including continued international influence and progress on domestic projects to enhance the relevance of financial and non-financial reporting information. The Board decided that the plan should be flexible, given the need to respond to emerging financial reporting matters, and address application issues through the Guidance Framework.
The AcSB approved its 2025-2026 Annual Plan and plans to issue it by March 31, 2025.
AcSB’s Annual Report
The AcSB discussed and approved its 2024-2025 Annual Report for the operating year and plans to issue it in June 2025.
Due Process
AcSB’s Advisory Committees and Working Groups
AcSB Committee Processes
The AcSB’s Committees and Groups act in an advisory capacity, and do not hold decision-making authority. The Board discussed its approach to preparing meeting notes for its domestic Committees that are publicly available on its website: Medium and Small Practitioners Advisory Committee, Not-for-Profit Advisory Committee, Pension Plan Advisory Committee, and Private Enterprise Advisory Committee.
Acknowledging the domestic Committees’ advisory role, the AcSB decided to discontinue providing Committee meeting notes on its website. Decision summaries will provide interested and affected parties with relevant information about how the Board considered the domestic Committees’ advice.
Not-for-Profit Advisory Committee
The AcSB received an update on the February 19, 2025, Not-for-Profit Advisory Committee meeting. At this meeting, the Committee discussed Contributions, Financial Statement Concepts, Reporting Controlled and Related Entities, the Board’s Annual Plan and more.
Canadian Private Enterprise User Advisory Committee
The AcSB received an update on the orientation meeting held on February 24, 2025, with the newly formed Canadian Private Enterprise User Advisory Committee. At this meeting, the Committee received orientation materials and discussed how financial information is consumed from a user perspective.
User Advisory Committee
The AcSB received an update on the February 27, 2025, User Advisory Committee meeting. At this meeting, Committee members discussed their views on the upcoming Financial Accounting Standards Board and IASB Agenda Consultations, Financial Instruments with Characteristics of Equity, Operating Segments, and the interaction between IFRS 18 Presentation and Disclosures in Financial Statements and the Canadian Security Administrator’s National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure.