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 – Targeted Standards-Level Review
The AcSB discussed the key points to include in its response letter to the International Accounting Standards Board’s (IASB) Exposure Draft, “Disclosure Requirements in IFRS Standards – A Pilot Approach.” As part of the discussion, the Board considered stakeholder feedback obtained through its outreach on this project, including a targeted user event. The Board will discuss a draft of its response letter at its meeting in November 2021.
The AcSB encourages stakeholders to share their views on the Exposure Draft by submitting comment letters to the IASB by January 12, 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 November 30, 2021.
Management Commentary
The AcSB discussed a plan to respond to the IASB’s Exposure Draft, “Management Commentary.” The Board also discussed key points to include in its response letter. The Board will discuss a draft of the response letter at its meeting in November 2021. The Board encourages stakeholders to share their views on the Exposure Draft by submitting comment letters to the IASB by November 23, 2021, with a copy to the AcSB.
Post-implementation Review – IFRS 9
The AcSB received an education session on the IASB’s Request for Information, “Post-implementation Review of IFRS 9 – Classification and Measurement.” The Board also discussed a plan to respond to the Request for Information.
The AcSB encourages stakeholders to monitor its website for opportunities to share feedback on the Request for Information. Response letters to the IASB are due on January 28, 2022, with a copy to the AcSB.
IFRIC Tentative Agenda Decision (TAD)
Cash Received via Electronic Transfer as Settlement for a Financial Asset
The AcSB discussed the IFRS® Interpretation Committee’s Tentative Agenda Decision on cash received via electronic transfer as a settlement for a financial asset (IFRS 9). Normally the staff responds to tentative agenda decisions. However, the Board decided to respond to this one because the proposals are expected to have a pervasive impact on Canadian stakeholders. Responses to the Interpretation Committee’s tentative agenda decision are due on November 25, 2021.
Standards for Private Enterprises and Not-for-Profit Organizations
Cloud Computing Arrangements
The AcSB continued its discussions on developing proposals to address the issues regarding the customer’s accounting for fees paid in a cloud computing arrangement and the related implementation costs.
The AcSB tentatively decided at its September 2021 meeting to develop guidance that would allow entities to capitalize directly attributable implementation costs in a situation when the cloud computing arrangement is a software service. At this meeting, the Board discussed how an entity should present such costs in the financial statements. The Board considered various balance sheet presentation options and tentatively decided that an entity should present such costs as prepaid expenses.
In addition, the AcSB considered a revised simplification approach aimed at permitting entities to expense the amounts in a cloud computing arrangement without having to perform a complex analysis of the arrangement. The Board directed staff to seek input from its Private Enterprise Advisory Committee and Not-for-Profit Advisory Committee on the approach developed to date to determine if the approach achieves the intended simplification objective.
The AcSB will discuss the Advisory Committees’ feedback on the proposals developed to date at its December 2021 meeting.
Due Process
AcSB’s Advisory Committee
IFRS® Discussion Group
Topics discussed at the September 22, 2021, meeting included costs necessary to sell inventories, accounting for crypto assets held on behalf of others and issuer’s accounting for green bonds.
Annual Plan
The AcSB received a quarterly update on the activities relating to its 2021-2022 Annual Plan. No changes were identified at this time. The Board will carry on with its planned activities and monitor for changes in the environment to ensure its activities continue to address stakeholders’ needs.
Draft Strategic Plan
The AcSB began discussing stakeholders’ feedback received to date from completed outreach activities on its 2022-2027 Draft Strategic Plan. The Draft Strategic Plan was open for comment until October 15, 2021.
The AcSB will continue discussing the feedback received from comment letters and from remaining planned outreach and the sufficiency of overall stakeholder feedback at its meeting in November 2021.
Strategic Plan Research
The AcSB began discussing the nature and extent of research regarding the Board’s proposed strategies related to the preface and scalability, as set out in the 2022-2027 Draft Strategic Plan. The Board plans to continue this discussion at its meeting in January 2022.