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 lack of clarity in the application of the requirements in IFRS 9 Financial Instruments to account for an extinguishment of a lessee’s lease liability. The lack of clarity arises because paragraph 2.1(b)(ii) of IFRS 9 includes a cross-reference to paragraph 3.3.1, but not to paragraph 3.3.3 of IFRS 9. The objective of this project is to amend IFRS 9 to remove this inconsistency by adding a cross-reference to paragraph 3.3.3.
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.