The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) annual improvements 2023 cycle, to produce a collection of unrelated minor amendments to IFRS® Accounting Standards.
There is currently potential confusion in the application guidance accompanying IFRS 7 Financial Instruments: Disclosures because paragraph IG20C fails to state that the example does not illustrate all the requirements in paragraph 35M of IFRS 7. The objective of this project is to clarify that the implementation guidance accompanying IFRS 7 does not illustrate all the requirements in IFRS 7 and to simplify the wording of paragraph IG20B.
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 Accounting Standards for publicly accountable enterprises.