The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to develop narrow scope amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures.
Specifically, the project aims to clarify the requirements for assessing a financial asset’s contractual cash flow characteristics, and address matters related to the derecognition of financial liabilities and the disclosure requirements for certain equity investments.
The AcSB’s due process includes ensuring that Canadian entities’ financial reporting needs are considered by the IASB and issuing the its own exposure draft on each IASB proposal. Subject to responses to the AcSB’s exposure draft on the appropriateness of the IASB’s proposals for application in Canada, the AcSB expects to incorporate the amendments into Canadian generally accepted accounting principles in accordance with the its strategy of adopting IFRS® Accounting Standards for publicly accountable enterprises.