The Accounting Standards Board (AcSB) has issued its Exposure Draft that corresponds to the International Accounting Standards Board’s (IASB) Exposure Draft on this topic.
The proposed amendments will:
- remove from IFRS 3 a reference to the previous version of the IASB’s Conceptual Framework;
- add to IFRS 3 an exception to its recognition principle; and
- make the IFRS 3 requirements for contingent assets more explicit.
The AcSB’s due process includes ensuring that Canadian entities’ financial reporting needs are considered by the IASB, and issuing the AcSB’s own exposure draft on each IASB proposal. Subject to the responses to the AcSB’s Exposure Draft on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRS Standards for publicly accountable enterprises.