Highlights
The Accounting Standards Board (AcSB) proposes, subject to comments received following exposure, to incorporate into Part I of the CPA Canada Handbook – Accounting, amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures.
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 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 made available on our 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 Classification and Measurement of Financial Instruments,” which is available on the IASB’s website at https://www.ifrs.org.
The IASB’s Exposure Draft responds to feedback received as part of the Post-Implementation Review of IFRS 9 – Classification and Measurement.
The Exposure Draft proposes amendments to the following requirements:
- assessing the contractual cash flow characteristics of financial assets, including those with environmental, social and governance (ESG)-linked features; and
- settling financial liabilities using an electronic payment system.
The Exposure Draft also proposes amendments or additions to the disclosure requirements for:
- investments in equity instruments designated at fair value through other comprehensive income; and
- financial instruments with contractual terms that could change the timing or amount of contractual cash flows based on the occurrence (or non-occurrence) of a contingent event.
Comments Requested
The AcSB encourages Canadian stakeholders 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 also like input from Canadian respondents on the following additional question regarding the proposed amendments:
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.