IFRS® Standards

Subsidiary as a First-time Adopter (Amendments to IFRS 1)

Summary

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.

Staff Contact(s)

Jayshal Rajendra Daya, CPA, CA

Principal, Accounting Standards Board

Project Status

  • Information gathering

    Completed prior to December 2017

  • Approving project

    In December 2017, the IASB tentatively decided to propose the amendment to IFRS 1 as part of the next Annual Improvements Cycle.

  • Consulting stakeholders

    IASB Exposure Draft issued in May 2019

    AcSB Exposure Draft issued in May 2019

    The AcSB consulted with our IFRS® Discussion Group in June 2019

  • Deliberating feedback

    The IASB and the AcSB are deliberating comments on their Exposure Drafts

  • Final pronouncement

Read the AcSB’s response letter to the IASB’s Exposure Draft, “Annual Improvements to IFRS® Standards 2018-2020.”

Read the AcSB’s response letter to the IASB’s Exposure Draft, “Annual Improvements to IFRS® Standards 2018-2020.”

Meeting & event summaries


News


June 7, 2019

Document for Comment

AcSB Exposure Draft – Annual Improvements to IFRS® Standards 2018-2020

The AcSB has issued its Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Stakeholders are encouraged to submit their comments by August 20, 2019.

May 31, 2019

News

IASB Exposure Draft – Annual Improvements to IFRS® Standards 2018-2020

The IASB has issued an Exposure Draft proposing amendments to IFRS Standards as part of its Annual Improvements process. Canadian stakeholders are encouraged to submit their comments to the IASB by August 20, 2019.

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.