The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to improve IAS 37 Provisions, Contingent Liabilities and Contingent Assets in the following three aspects:
- aligning the definition of a liability and requirements for identifying liabilities in IAS 37 with the Conceptual Framework for Financial Reporting;
- clarifying which costs to include in the measurement of a provision; and
- specifying whether the rate at which an entity discounts a provision should reflect the entity’s own credit risk.
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 generally accepted accounting principles in accordance with the AcSB’s strategy of adopting IFRS Standards for publicly accountable enterprises.