The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) Annual Improvements to IFRS® Accounting Standards – Volume 11 project, to produce a collection of unrelated minor amendments to IFRS® Accounting Standards.
There is currently potential confusion arising from a reference in Appendix A to IFRS 9 Financial Instruments to the definition of ‘transaction price’ in IFRS 15 Revenue from Contracts with Customers. The term ‘transaction price’ is used in certain paragraphs of IFRS 9 with a meaning that is not necessarily consistent with the definition of that term in IFRS 15. The objective of this project is to amend IFRS 9 to remove this inconsistency by deleting the reference to ‘transaction price’ and the associated references to IFRS 15.
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.