IFRS® Standards

Taxation in Fair Value Measurements (Amendments to IAS 41)


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.

Currently, IAS 41 Agriculture requires an entity to exclude taxation cash flows from its discounted cash flow model, in determining the fair value of its biological assets.

The objective of this improvement is to ensure a consistent valuation approach, by permitting an entity to use post-tax cash flows and a post-tax rate to discount those cash flows. This improvement would amend IAS 41, to remove the requirement to exclude taxation cash flows when calculating the fair value of its biological assets.

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 January 2018.

  • Approving project

    In January 2018, the IASB tentatively decided to propose the amendment to IAS 41 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The AASB discussed draft guidance to assist practitioners performing service and organization controls engagements who are required to report under both Canadian and U.S. standards.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.