The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to build on the existing Conceptual Framework by updating, improving and filling in gaps, rather than fundamentally reconsidering all aspects of the Conceptual Framework.
In developing the Conceptual Framework, the IASB will focus on:
- elements of the financial statements (including the boundary between liabilities and equity);
- recognition and derecognition;
- presentation and disclosure (including the question of what should be presented in other comprehensive income); and
- the reporting entity.
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 drafts on the IASB’s proposals. In addition, the AcSB Chair is a member of the IASB’s Accounting Standards Advisory Forum and is advising the IASB on this project. Subject to the responses to the AcSB’s exposure drafts on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the revised Conceptual Framework will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRSs for publicly accountable enterprises.