The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) annual improvements 2018-2020 cycle, to produce a collection of unrelated minor amendments to IFRS® Standards.
A subsidiary, that adopts IFRS Standards subsequent to its parent, measures its cumulative translation differences either at zero or on a retrospective basis at that date. The exemption currently in paragraph D16(a) of IFRS 1 First-time Adoption of International Financial Reporting Standards, does not apply to cumulative translation differences.
The objective of this improvement is to amend IFRS 1, to provide a subsidiary, that adopts IFRS Standards subsequent to its parent, with additional relief relating to its cumulative translation differences.
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. After considering the responses to the AcSB’s exposure draft and the relevance of the IASB’s proposals to the Canadian market, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRS Standards for publicly accountable enterprises.