Top Stories

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.

The need for a Canadian Sustainability Standards Board is clearer than ever, says Edward J. Waitzer, Chair of the Independent Review Committee on Standard Setting in Canada. Learn more.

The AASB is excited to share that Eric Turner, Director, AASB has been reappointed to the International Auditing and Assurance Standards Board (IAASB).

Eric’s new three-year term will commence on January 1, 2022.

The International Auditing and Assurance Standards Board develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. Read more.

The formation of the new International Sustainability Standards Board (ISSB) was announced on Finance Day at COP26 in Glasgow, along with two other significant developments.

The IFRS Foundation also announced its commitment to consolidating the Climate Disclosure Standards Board and the Value Reporting Foundation with the new ISSB and will publish prototype climate and general disclosure requirements developed by the Technical Readiness Working Group (TRWG) – a group formed by the Trustees to undertake preparatory work for the ISSB.

The ISSB’s standards will enable companies to provide comprehensive sustainability information for the global financial markets. It will also have a global and multi-location presence with offices in Frankfurt and Montreal, responsible for key functions supporting the new Board, and enable deeper co-operation with regional stakeholders.

The Board discussed Cloud Computing, Disclosure Initiative – Targeted Standards-Level Review, Management Commentary, Post-implementation Review of IFRS 9, the Draft Strategic Plan, and more. Read the Decision Summary for full details, including how stakeholders can provide feedback on these initiatives.

At its September 22, 2021 meeting, the Group discussed financial reporting hot topics such as the IFRS^® Interpretations Committee’s agenda decision on the costs necessary to sell inventories, accounting for crypto assets held on behalf of others, and an issuer’s accounting for green bonds. Read the meeting report for details.

On September 24, 2021, the AcSB responded to the IASB’s Request for Information, "Third Agenda Consultation", issued in March 2021. The AcSB’s letter comments on the IASB’s overall strategic direction and identifies and describes the financial reporting topics it thinks the IASB should prioritize over the next five years, including climate-related risks, cryptocurrencies, the statement of cash flows, and intangible assets. Read our letter to find out more! 

In a new joint report on the audit expectation gap, the Association of Chartered Certified Accountants (ACCA), Chartered Accountants Australia and New Zealand (CA ANZ), Chartered Professional Accountants of Canada (CPA Canada), and the Canadian Auditing and Assurance Standards Board (AASB) provide recommendations for regulators, standard setters, and auditors on tackling fraud and addressing going concern issues. Learn more.