The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend International Financial Reporting Standard (IFRS) 8 Operating Segments and IAS 34 Interim Financial Reporting.
The IASB’s Post-implementation Review of IFRS 8 confirmed that the standard generally functions well but identified some areas for potential improvement:
- identification of the chief operating decision maker;
- aggregation of operating segments into reportable segments;
- understandability of the segment reconciliation;
- increasing the number of reported line items; and
- preservation of trend data on a change in composition of reportable segments.
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 IFRSs for publicly accountable enterprises.