IFRS® Standards

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


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
  • Deliberating feedback
  • Final pronouncement

April 25, 2019 AcSB Decision Summary – April 9, 2019

The AcSB discussed the draft response letter to the International Accounting Standard Board’s (IASB) Exposure Draft “Onerous Contracts – Cost of Fulfilling a Contract .” The Board directed the staff to make amendments based on its comments. The Board’s final response letter will be sent to the IASB by the April 15, 2019, deadline.

April 18, 2019 AASB Decision Summary – April 8, 2019 Conference Call

The AASB discussed draft guidance to assist practitioners performing service and organization controls engagements who are required to report under both Canadian and U.S. standards. The guidance addresses differences between each jurisdiction’s overarching attestation standards.

April 18, 2019 AASB Decision Summary – April 8, 2019 Conference Call

The AASB discussed key issues stakeholders raised related to the Exposure Draft, “Compilation Engagements,” including:

  • engagement acceptance and continuance; and
  • work effort and documentation.

The Board will continue to discuss these issues at a future meeting.


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.