The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend IAS 1 Presentation of Financial Statements.
The objective of this project is to develop guidance and examples to help entities apply materiality judgments to accounting policy disclosure. The IASB is developing amendments to require entities to disclose their material accounting policies rather than their significant accounting policies. The IASB is also developing guidance and examples to explain and demonstrate the application of the ‘four-step materiality process’ described in IFRS Practice Statement 2 Making Materiality Judgements (Materiality Practice Statement) to accounting policy disclosures.
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 IFRSs for publicly accountable enterprises.