Highlights
The Accounting Standards Board (AcSB) proposes, subject to comments received following exposure, to incorporate amendments to International Accounting Standard (IAS) 28 Investments in Associates and Joint Ventures in Part I of the CPA Canada Handbook – Accounting.
This AcSB Exposure Draft reflects proposals made by the International Accounting Standards Board (IASB) that the AcSB intends to adopt, subject to deliberating comments received, as Canadian generally accepted accounting principles.
Comments are requested from individuals and organizations in Canada who agree with the Exposure Draft proposals as well as from those who do not. Comments are most helpful if they relate to a specific paragraph or group of paragraphs. Any comments that express disagreement with the proposals should clearly explain the problem and include a suggested alternative, supported by specific reasoning.
Comments received on the AcSB Exposure Draft will be available on the website shortly after the comment deadline unless confidentiality is requested. The request for confidentiality must be stated explicitly within the response.
IASB® Exposure Draft
The IASB recently issued the Exposure Draft, “Amendments to the Fair Value Option for Investments in Associates and Joint Ventures,” which is available on the IASB website at www.ifrs.org.
The IASB’s Exposure Draft proposes narrow-scope amendments aimed at broadening the scope of investments in an associate or joint venture that can be measured using the fair value option.
The proposed amendments would clarify that “entities that invest in assets as a main business activity” are in scope of paragraphs 18-19 of IAS 28.
The IASB’s Exposure Draft includes a Basis for Conclusions that may provide information to interested and affected parties.
Comments Requested
The AcSB encourages interested and affected parties in Canada to respond to the IASB on its Exposure Draft. Specific questions on which the IASB would like input are provided in the Invitation to Comment in its Exposure Draft. The AcSB requests that comment letters be sent directly to the IASB with a copy to the AcSB.
The AcSB would like input from Canadian respondents on the following additional question regarding the proposed amendment:
The IASB has developed the proposed amendments in accordance with its due process for
application around the world. Assuming the Exposure Draft proposals are finalized and
approved by the IASB in accordance with its due process, do you think that the proposals are
appropriate for application in Canada? If not, please specify which aspects of the proposals,
and what circumstances, make the accounting requirements proposed in the Exposure Draft inappropriate.
Send responses to this additional question directly to the AcSB.