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On November 18, 2021, the AcSB responded to the IASB’s Exposure Draft, issued in May 2021. The AcSB’s letter expresses support for the IASB’s project to update the existing Management Commentary Practice Statement. Specifically, the AcSB commented on aspects of the proposals, including the users of management commentary, materiality, and the statement of compliance. Read our letter to find out more!

The IASB has proposed amendments to IAS 1 Presentation of Financial Statements to improve the information companies provide about long-term debt with covenants. The proposals aim to improve the information a company provides about non-current liabilities with covenants by enabling investors to assess whether such liabilities could become repayable within 12 months. Canadian stakeholders are encouraged to submit their comments to the IASB by March 21, 2022.

The IASB has issued an Exposure Draft to amend IAS 7 and IFRS 7. The proposed amendments include new disclosure requirements aimed at enabling users of financial statements to assess the effects of the entity’s supplier finance arrangements on its liabilities and cash flows. Canadian stakeholders are encouraged to submit their comments to the IASB by March 28, 2022.

The Board discussed the PSA Discussion Group, the Government Not-for-Profit Strategy, Post-Implementation Review Assessments, the Monitoring Project Plan, and more. Read the Decision Summary for full details.

Since the launch of our Framework for Reporting Performance Measures in December 2018, the world has witnessed significant change. With increased activity and momentum around sustainability reporting - as well as a new National Instrument on other financial measure disclosures from the CSA - disclosure of performance measures  is more relevant today than ever. To help you prepare for year-end reporting while navigating these changes, we revised our Framework for Reporting Performance Measures.

Section 3065, Leases was amended on December 1, 2021, to extend the optional relief by one year for both lessees and lessors on accounting for rent concessions received or granted as a result of the COVID-19 pandemic. This amendment is effective for fiscal years ending on or after December 31, 2021. Earlier application is permitted, including in financial statements not yet authorized for issue. Read more for further details on the amendment.

The Board discussed Cash Received via Electronic Transfer as Settlement for a Financial Asset, Disclosure Initiative – Subsidiaries without Public Accountability, Disclosure Initiative – Targeted Standards-level Review, the Draft Strategic Plan, the Due Process Manual, IBOR Reform, Management Commentary, Pension Plans, and more. Read the Decision Summary for full details, including how stakeholders can provide feedback on these initiatives.

On November 17, 2021, the UK Endorsement Board (UKEB) and the Accounting Standards Board (AcSB) of Canada held their first-ever bilateral meeting. The virtual meeting provided an opportunity for the Boards to exchange views on some International Accounting Standards Board (IASB) projects.

Topics discussed included the recognition of embedded derivatives as part of implementing Section PS 3450, as well as the emerging issue involving accounting for natural capital.

With developments on sustainability standards continuing to unfold internationally, the Independent Review Committee on Standard Setting in Canada continues its work to ensure that Canadian standard setting is fit for the future. Get an update on discussions and the key matters identified, including public interest considerations and responsibilities to Indigenous peoples in the development of standards and recommendations on establishing a Canadian Sustainability Standards Board. The Committee will issue a Consultation Paper for the for public to comment on, in December. Read about the Committees’ progress to date and next steps.