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
Disclosure Initiative – Subsidiaries without Public Accountability
The AcSB received an overview of the International Accounting Standard Board’s (IASB) Exposure Draft, “Subsidiaries without Public Accountability: Disclosures.”
The AcSB discussed whether to respond to the Exposure Draft and decided to issue a response letter on the scope of the proposals as the proposals could benefit a broader group of Canadian stakeholders based on feedback on the AcSB’s 2022-2027 Draft Strategic Plan. 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. If respondents would like the Board to consider their comments when drafting its letter to the IASB, they should submit their response letters to the AcSB before January 17, 2022.
Disclosure Initiative – Targeted Standards-level Review
The AcSB discussed its draft response letter to the IASB’s Exposure Draft, “Disclosure Requirements in IFRS Standards—A Pilot Approach,” and 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 12, 2022, with a copy to the AcSB. If respondents would like the Board to consider their comments before finalizing its letter to the IASB, they should submit their response letters to the AcSB before December 15, 2021.
Management Commentary
The AcSB discussed its draft response letter to the IASB’s Exposure Draft, “Management Commentary,” and 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 November 23, 2021, with a copy to the AcSB.
IFRS Interpretation Committee’s (IFRIC)Tentative Agenda Decision
Cash Received via Electronic Transfer as Settlement for a Financial Asset
The AcSB discussed its draft response letter to the IFRIC® Tentative Agenda Decision on “Cash Received via Electronic Transfer as Settlement for a Financial Asset,” and provided staff with comments to incorporate into the final letter. The Board will submit its response letter by the November 25, 2021, deadline.
Standards for Private Enterprises and Not-for-Profit Organizations
Interest Rate Benchmark (IBOR) Reform
The AcSB deliberated stakeholders’ feedback on the Exposure Draft, “Financial Instruments.” Overall, respondents supported the proposals in the Exposure Draft. The Board re-affirmed the proposals that require:
- discontinued hedging relationships to be reinstated when that hedging relationship is discontinued solely due to IBOR reform, and the entity would not have been permitted to discontinue that hedging relationship if these amendments had been applied; and
- enterprises to disclose the nature and the carrying amount of the financial instruments that are subject to IBOR reform.
The AcSB recognizes the urgency of the amendments and is currently in the process of balloting. The Board plans to issue the final amendments into the CPA Canada Handbook on February 1, 2022. The amendments will apply to annual financial statements ending on or after February 1, 2022, with earlier application permitted, including in financial statements not yet authorized for issue.
Standards for Pension Plans
The AcSB discussed the proposals to include in the Exposure Draft to amend Section 4600, Pension Plans. The Board considered feedback from its Pension Plan Working Group and directed staff to make clarifications to the proposals. The Board reaffirmed the proposals will address the following topics:
- determining whether a statement of changes in pension obligations for defined contribution plans is required;
- determining the split or amalgamation date for pension plans;
- accounting for guaranteed annuity contracts (commonly known as “buy-in and buy-out” contracts);
- presentation of combination pension plans; and
- disclosing risks for investments in master trusts.
The AcSB expects to issue the Exposure Draft no later than March 1, 2022, with an anticipated comment period deadline of June 15, 2022.
Due Process
AcSB’s Advisory Committees and Pension Plan Working Group
The AcSB received feedback on the discussions at recent meetings of its Not-for-Profit Advisory Committee, Private Enterprise Advisory Committee, and Pension Plan Working Group.
Not-for-Profit Advisory Committee
Topics discussed at the October 19, 2021, and November 9, 2021, meetings included contributions, amendments to other frameworks, implementation of Accounting Standards for Not-for-Profit Organizations, and cloud computing arrangements.
Private Enterprise Advisory Committee
Topics discussed at the October 27, 2021, meeting included application issues that have arisen in practice relating to interests in joint arrangements and retractable or mandatorily redeemable shares issued in a tax planning arrangement. At its December 2021 meeting, the Board will be discussing the application matters related to retractable or mandatorily redeemable shares issued in a tax planning arrangement and educational tools to assist stakeholders in the implementation of this amendment.
Pension Plan Working Group
Topics discussed at the October 27, 2021, meeting included issues raised with Section 4600, Pension Plans, and proposals to include in the Exposure Draft.
Draft Strategic Plan
The AcSB continued discussing stakeholder feedback from outreach activities and comment letters on its 2022-2027 Draft Strategic Plan. The Board also discussed whether due process was met, including whether sufficient stakeholder feedback was received. The Board concluded due process was met and that no further outreach activities were required.
The AcSB will review an updated draft of the plan at its meeting in December 2021 and expects to issue the final 2022-2027 Strategic Plan on April 1, 2022.
Due Process Manual
The AcSB discussed a revised draft of its Due Process Manual, including changes to clarify certain processes and better support the Board in responding to stakeholder needs on a timely basis. Specifically, the changes relate to:
- the due process for Accounting Guidelines;
- the process for when a Board member dissents on issuing a consultation paper, an Exposure Draft, a new standard or an amendment; and
- the length of the comment period for Exposure Drafts.
The AcSB provided staff with comments to incorporate into the revised Due Process Manual. The Board intends to publish the revised Due Process Manual after engaging with the Accounting Standards Oversight Council on the changes.
Translation
The AcSB continued to discuss the process for translating non-authoritative materials and the types of documents that are helpful and/or required for stakeholders to implement accounting standards. The Board acknowledges the need for more non-authoritative materials to be available to stakeholders and will continue the discussion at a future meeting.