Second half of 2018 – IASB to issue a second discussion paper.
The objective of this project is to develop an approach that:
- better reflects entities’ dynamic risk management activities in their financial statements; and
- enhances the usefulness of the financial information to help users of financial statements to better understand such activities.
Operational feasibility is also one of the considerations being evaluated when exploring an accounting approach for dynamic risk management.
The model focuses on interest rate risk, particularly as managed by banks however, the approach is intended to be applicable to the dynamic management of risks arising from both financial and non-financial items.
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.