Meeting Minutes
The Reporting and Assurance Standards Oversight Council (the Oversight Council) met in person on June 18-19, 2025. The following minutes relate to the public session, held on June 18.
Call to Order
After an in-camera session for Oversight Council members, the Oversight Council Chair, Richard Talbot, called the meeting to order at 9:18 a.m. (EST). The Chair delivered opening remarks and shared a land acknowledgment.
Approval of the Consent Agenda
The consent agenda was presented for information, including:
- minutes from April 3, 2025 (approved offline);
- Oversight Council follow-up items; and
- financial snapshot of the 2025 fiscal year.
Public Sector Accounting Board (PSAB) Chair’s Update and Performance Report
Clyde MacLellan, PSAB Chair, and Michael Puskaric, Director of Public Sector Accounting Standards, presented an update on the Board’s activities between April and early June 2025. Mr. MacLellan reported that Phase I of the Employee Benefits project was on track for completion by fiscal year-end. There have been no modifications to the Board’s risk profile since April, nor have there been any reportable deviations from due process.
Mr. MacLellan presented the PSAB’s performance report to the Oversight Council. The Oversight Council raised questions about partially complete or incomplete activities. Mr. MacLellan clarified that some items were marked incomplete due to informal responses (e.g., to the Canadian Sustainability Standards Board’s (CSSB) 2025-2028 Strategic Plan) or because priorities shifted to more urgent matters, such as aligning the Statement of Recommended Practices (SORP) 1, Financial Statement Discussion & Analysis, with the new Conceptual Framework for Financial Reporting in the Public Sector, effective April 1, 2026.
The Oversight Council discussed improvement opportunities identified in PSAB’s member and volunteer surveys, including:
- lengthy meeting materials;
- Board member engagement and participation; and
- language barriers for francophone volunteers.
Mr. MacLellan acknowledged these concerns and outlined efforts to streamline materials, highlight essential content, and explore artificial intelligence (AI) tools for translation and summarization. The PSAB Chair addressed the engagement challenges with remote and Indigenous communities, and how the Indigenous Advisory Group help.
With regards to the Indigenous Advisory Group, Mr. MacLellan confirmed that term limits and succession planning were under consideration. The Group’s composition was evolving toward greater Indigenous representation, and efforts were underway to detail key issues affecting Indigenous communities.
The Oversight Council emphasized the importance of understanding how standards are applied and requested that implementation feedback be built into future reporting. Mr. MacLellan noted that PSAB monitors application through audit reports and public accounts and receives feedback from the First Nations Financial Management Board.
It was moved by Jocelyn Patenaude, seconded by Don Newell;
Be it resolved:
That the Reporting and Assurance Standards Oversight Council confirms that the Public Sector Accounting Board met expectations for 2024-2025 and that the performance report adequately reflects the Board’s performance outcomes.
Carried.
Auditing and Assurance Standards Board (AASB) Chair’s Update and Performance Report
Bob Bosshard, AASB Chair, and Karen DeGiobbi, Director of Auditing and Assurance Standards, presented an update on the Board’s activities between April and early June 2025, including its engagement activities and participation in a jurisdictional standard-setters meeting in New York. There were no reportable departures from due process.
The Oversight Council discussed the AASB’s initiative focused on supporting audits of less complex entities (LCEs) following the Board’s decision not to adopt the International Standard on Auditing for LCEs due to a lack of fit for the Canadian context. The Audits of LCEs Working Group was launched in February 2025 to explore scalable solutions. The Group’s mandate spans three years, with periodic monitoring and evolving membership.
The Oversight Council requested periodic updates on the Group’s progress and discussed broader opportunities for synergy across the Boards, particularly in using technology and AI. The Oversight Council explored the scalability of standards and the role of the Group in influencing broader standard-setting work. Mr. Bosshard clarified that while the Group focuses on LCE solutions, the AASB remains committed to proportionality across all standards. Mr. Bosshard also shared plans to experiment with AI internally to analyze international papers and improve internal workflows.
After reviewing the performance report, the Oversight Council commented on the change in risk level related to the AASB’s influence on international standard setting. The residual risk was assessed as high due to the uncertainty around Canada’s representation and the responsiveness of international bodies. The Oversight Council discussed the importance of building relationships with technical staff and monitoring feedback uptake.
The Oversight Council also inquired about engagement levels on certain exposure drafts and discussed timing and outreach strategies. Mr. Bosshard clarified that based on the timing of the performance report, some project consultations fell outside of the reporting period, giving an incomplete picture of how the outreach plans were executed.
It was moved by Terry Goodtrack, seconded by Erica Teklits;
Be it resolved:
That the Reporting and Assurance Standards Oversight Council confirms that the Auditing and Assurance Standards Board met expectations for 2024-2025 and that the performance report adequately reflects the Board’s performance outcomes.
Carried.
Accounting Standards Board (AcSB) Chair’s Update and Performance Report
Armand Capisciolto, AcSB Chair, and Katharine Christopoulos, Director of Accounting Standards, provided an update on the Board’s activities between April and early June 2025, including updates to its due process manual and the launch of the Canadian Private Enterprise User Advisory Committee. The AcSB Chair highlighted International Accounting Standards Board’s agenda consultation as a key strategic input, with potential implications for the AcSB’s work plan. There were no reportable departures in due process.
The Oversight Council discussed the scalability of Accounting Standards for Private Enterprises (ASPE) and the AcSB’s Consultation Paper, “Detailed Review of ASPE,” aimed at improving accessibility without compromising quality. Mr. Capisciolto emphasized the importance of this Consultation Paper as it prioritized topics that will drive future work.
Mr. Capisciolto identified a pervasive risk related to staff capacity. He reported the loss of two staff members, including an associate director and that, as a result, the 2024-2025 Annual Plan would not be fully met. The AcSB expects a revised plan in September, with updates to the Oversight Council in November.
The Oversight Council emphasized the need to understand resource requirements beyond current capacity and supported the AcSB’s efforts to reassess priorities.
It was moved by Jocelyn Patenaude, seconded by Katie Dunphy;
Be it resolved:
That the Reporting and Assurance Standards Oversight Council confirms that the Accounting Standards Board met expectations for 2024-2025 and that the performance report adequately reflects the Board’s performance outcomes.
Carried.
CSSB Chair’s Update
Mr. Talbot welcomed Wendy Berman, CSSB Chair, to her first Oversight Council meeting. Ms. Berman and Lisa French, Vice-President of Sustainability Standards, presented an update on the Board’s activities between April and early June 2025. There were no reportable departures in due process. The CSSB Chair reported that the Board’s 2025-2028 Strategic Plan would be published in November 2025. Consultation efforts yielded 194 participants, with notable engagement from Indigenous (17%) and francophone (16%) communities.
The Oversight Council discussed geopolitical impacts on adoption, including the Canadian Securities Administrators’ pause on climate disclosures and concerns about greenwashing and liability under the Competition Act. Despite these challenges, investor demand for sustainability disclosures remains strong.
Ms. Berman outlined the CSSB’s ongoing efforts to:
- support Canadian Sustainability Disclosure Standards adoption by Canadian entities by articulating the value proposition;
- explore and strengthen governance and committee structures;
- monitor global developments (e.g., the Internationals Sustainability Standards Board’s advances in biodiversity and human capital projects); and
- align Canadian Sustainability Disclosure Standard 2, Climate-related Disclosures, with amendments to IFRS S2 Climate-related Disclosures and enhancements to the SASB Standards.
The Oversight Council asked whether companies remain committed to sustainability disclosures or are reconsidering their approach in light of recent regulatory developments. Ms. Berman noted that she is hearing anecdotally that some Canadian companies are scaling back their efforts to build capacity for sustainability disclosures, including resource reductions within corporate sustainability teams and diversion of resources to other business activities, especially among small- and medium-sized enterprises (SMEs). Regulatory direction is a key driver for maintaining internal support and capacity building.
The Oversight Council acknowledged the need to allocate additional resources toward developing tools tailored to Canadian SMEs, recognizing their limited capacity for rigorous disclosure practices.
Ms. Berman shared feedback from the Office of the Superintendent of Financial Institutions (OSFI), highlighting a positive response to the quality of climate-related data received on transition and physical risks. The recent renaming of OSFI’s climate unit to the Catastrophic Risk Unit reflects a heightened awareness of associated financial risks.
The Oversight Council raised a question on measuring the effectiveness of sustainability disclosure standards from both preparer and user perspectives. Ms. Berman replied that the CSSB has plans to increase engagement with Canadian companies, ensuring representation across various regions, industries, and business sizes.
The Oversight Council expressed concern about the unintended consequences of anti-greenwashing legislation (i.e., Bill C-59), such as reduced transparency stemming from litigation fears. Ms. Berman acknowledged this concern, while also noting that compliance with the CSSBs standards would arguably demonstrate sufficient due diligence against a greenwashing claim and that broad adoption of these standards would be a best practice that Canadian companies could rely on to demonstrate their disclosures had adequate and proper substantiation.
The Oversight Council discussed the CSSB’s resourcing. Ms. Berman outlined the Board’s strategy to communicate its value proposition and leverage advisory committees and regulatory partners for maximum effectiveness.
The CSSB’s ongoing efforts to engage with Indigenous Peoples were highlighted. The Board has plans to establish an Indigenous-led research project and an Indigenous engagement plan. It was moved by Katie Dunphy, seconded by Barb Sundquist;
Be it resolved:
That the Reporting and Assurance Standards Oversight Council confirms that the Canadian Sustainability Standards Board met expectations for 2024-2025 and that the performance report adequately reflects the Board’s performance outcomes.
Carried.
Adjournment
The public session concluded at 1:00 p.m. Having no further business, the meeting adjourned at 4:00 p.m.