The AcSB is undertaking narrow‑scope standard setting to address concerns related to the derecognition of financial liabilities guidance under Section 3856 Financial Instruments in Part II of the CPA Canada Handbook – Accounting Standards for Private Enterprises (ASPE).
Recent amendments made by the International Accounting Standards Board (IASB) to IFRS 9 Financial Instruments clarified that a financial liability is generally extinguished on the settlement date rather than on the trade date, with a limited exception for certain electronic payment systems. Although these amendments do not apply to entities applying ASPE, concerns have been raised that some entities may look to the amended IFRS Accounting Standards guidance because the derecognition principles in Section 3856 align with IFRS 9.
The AcSB aims to support consistent application of the derecognition requirements, address identified concerns and limit the risk of unintended consequences.