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Mission
Objectives
Responsibilities
Accountability
Composition and Term
Selection Process
Consultation and Communication
Decision Making
Reporting
Meetings
Bilingualism
Funding
Mission
| 1. |
The mission of the Accounting Standards Board ("AcSB") shall be to contribute to
enhanced decision-making by continuously improving the quality of financial and other information about
organizational performance reported by Canadian entities including profit oriented enterprises and
not-for-profit organizations. The AcSB shall serve the public interest by developing and establishing
standards and guidance governing financial accounting and reporting domestically and by contributing to the
development of internationally accepted standards. |
Objectives
| 2. |
The AcSB shall have the following objectives: |
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a. |
To develop standards that improve the quality of information reported by Canadian
entities with due consideration for the costs and the benefits to preparers and users and which recognize
changing priorities in the environment. |
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b. |
To eliminate or minimize GAAP differences within North America and internationally, as
appropriate to facilitate access by Canadian entities to US and global markets. |
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c. |
To participate in the development of a single set of high quality internationally accepted accounting
standards together with other standard setters.
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d. |
To support our standard setting activities by actively assisting implementation and
providing timely guidance on emerging issues. |
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e. |
To continuously improve the process of standard setting.
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| 3. |
In meeting its objectives, the Board shall: |
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a. |
Be committed to serve the public interest |
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b. |
Respect and encourage input from all its stakeholders |
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c. |
Bring objectivity to the
consideration of issues |
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d. |
Respect the ability of its stakeholders to exercise professional judgment. |
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e. |
Be committed to timeliness in
its responses to stakeholder needs. |
Responsibilities
| 4. |
The AcSB shall have the following responsibilities: |
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a. |
To issue and publish accounting pronouncements on its own authority, if satisfied as
to need, usefulness and practicality, following a review of accounting theory and practice and a process of
consultation with affected parties and debate (due process). |
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b. |
To develop and submit to the Accounting Standards Oversight Council ("AcSOC") an
annual plan that specifies AcSB's strategic direction, priorities and agenda, including a report on how
projects were selected and priorities set. |
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c. |
To implement the most effective working process for all projects and commission task
forces, advisory groups, consultative groups or study groups, as appropriate, to aid in the development of
accounting standards, guidelines or other material. Appointments to all task forces, advisory groups etc.
affiliated with the AcSB, should be made by the Chair of that task force or advisory group and approved by
the Chair of the AcSB and the Director of Accounting Standards. |
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d. |
To advise AcSOC as to the adequacy of human and financial resources to accomplish the
AcSB's objectives. |
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e. |
To recommend accounting research in Canada, particularly on issues that may be of
relevance to the Canadian business environment. |
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f. |
To communicate with and seek input from stakeholders on a timely basis. |
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g. |
To appoint, subject to the ratification of the AcSOC, members of an Emerging Issues
Committee ("EIC"), whose mission shall be to provide a forum for the timely review of emerging accounting
issues that are likely to receive divergent or unsatisfactory treatment in the absence of some
guidance. |
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h. |
To approve changes to the EIC's Terms of Reference. |
Accountability
| 5. |
The AcSB shall be accountable to the AcSOC to demonstrate that it has fulfilled its
mandate effectively, efficiently and economically. |
Composition and
Term
| 6. |
Membership of the AcSB shall be as follows:
Voting Members |
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a. |
A full-time, paid Chair with a term of office of five years, renewable twice for terms
of two years; and |
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b. |
Eight other volunteer members each with a term of three years, which is renewable for
one term. |
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a. |
The Vice-President, Standards of the CICA; |
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b. |
The Accounting Standards Director; and |
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c. |
The International Accounting Standards Board member.
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| 7. |
The terms of the AcSB's voting members shall be arranged with staggered expiry dates
so there will be an orderly rotation of membership each year.
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| 8. |
The role of the Chair shall include:
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a. |
Presiding over the AcSB meetings, including AcSB panels, and communicating with
members between meetings, as necessary, concerning the AcSB's activities; |
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b. |
Serving as a non-voting member of the AcSOC and a non-voting member of its Nominating
Committee; |
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c. |
Serving as one of Canada's representatives at meetings relating to international
accounting standard-setting; |
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d. |
Acting as Canada's leading spokesperson and contact on private sector accounting
matters for both the media and the public; |
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e. |
Representing the AcSB in meetings of other parties involved or interested in the
AcSB's activities; and |
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f. |
Making presentations nationally and internationally on accounting matters. |
Selection Process
| 9. |
Members of the AcSB shall be selected to ensure that it has an appropriate balance of
competencies and experiences to meet its objectives. The Chair of the AcSB, in conjunction with the
Accounting Standards Director of the CICA, and the Vice-President, Standards of the CICA, shall provide input
regarding individuals for potential membership on the AcSB to the Nominating Committee of the AcSOC. The
Nominating Committee may, but need not necessarily, adopt such recommendations. After receiving such input,
the Nominating Committee shall present the proposed members of the AcSB to the AcSOC for approval. In the
case of the full-time, paid Chair of the AcSB, this procedure contemplates a search and interview process,
which process shall form part of the budget of the AcSOC. |
Assistance/Advice/Operations
| 10. |
The AcSB shall be supported by the Accounting Standards Director and such other staff
as required. |
Consultation and
Communication
| 11. |
The AcSB actively shall solicit input on proposed accounting standards or guidance by
issuing draft documents inviting public comment. Outreach programs, such as focus groups and field testing,
shall be used to approach preparers, auditors and users of financial information directly for their
input.
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| 12. |
The AcSB shall disseminate information about international standard-setting
activities, together with invitations to the public, to provide input on those activities.
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| 13. |
The AcSB shall publish a basis for conclusions for each standard and exposure draft
developed, if appropriate.
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| 14. |
The AcSB shall provide examples and implementation guidance, if appropriate, to assist
preparers, auditors and other constituents in understanding and applying complex standards
consistently.
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| 15. |
The AcSB shall publish newsletters, maintain an internet website and provide other
such information to assist preparers, auditors and other users of financial information. |
Decision Making
| 16. |
Each year, the AcSB shall present its priorities and agenda to the AcSOC for comments
and shall consider the views and comments of the AcSOC in determining its priorities and agenda. If, for any
reason, the AcSB does not wish to incorporate specific views and comments of the AcSOC into its priorities
and agenda, the AcSB shall advise the AcSOC as to its reasons and provide the AcSOC with an opportunity to
respond. The AcSB shall convey to the AcSOC its preliminary agenda planning decisions, including
preliminary approval of project proposals and preliminary decisions to discontinue a project, and
subsequently shall consider the AcSOC's views thereon before reaching final decisions.
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| 17. |
A project to develop a new Accounting Recommendation or Accounting Guideline, or to
modify an existing one, may be assigned to a panel of AcSB members. This determination shall be made by the
AcSB as part of the review and approval of the project proposal. In assigning a project to a panel, the AcSB
shall approve the key principles to be followed by the panel as well as the panel's composition.
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| 18. |
Decisions of the AcSB to release an exposure draft, approve an Accounting
Recommendation or Accounting Guideline, or to assign a project to a panel of the AcSB shall require a vote of
two-thirds of all AcSB voting members. Decisions of a panel of the AcSB to release an exposure draft or to
approve an Accounting Recommendation or Accounting Guideline shall require the affirmative vote of five AcSB
members of the panel. (AcSB members may attend meetings of a panel of which they are not a member, but can
not vote.)
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| 19. |
Each voting member shall have one vote. AcSB members are expected to vote according to
their own beliefs and not as representatives voting according to the views of the firm, organization or
constituency with which they are associated. |
Reporting
| 20. |
The AcSB shall report annually on its activities.
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| 21. |
The AcSB shall review its Terms of Reference to ensure that they continue to meet the
needs of the AcSB and the public, and submit the results of this review to the AcSOC at least once every
three years.
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| 22. |
The AcSB shall submit such reports as may be required by the AcSOC. |
Meetings
| 23. |
Meetings of the AcSB shall normally be held at least six times a year. Additional
meetings may be convened to achieve the AcSB's objectives.
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| 24. |
Any voting member of the AcSB who either: |
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a. |
Fails to attend more than two meetings of the AcSB in succession (including meetings
of panels of which they are a member) for whatever cause; or |
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b. |
Fails to attend, in any twelve-month period, at least 50% of all meetings of the AcSB
(including meetings of panels of which they are a member) |
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shall automatically cease to be a member of the AcSB at the end of the meeting at which he or she was in
default. A member shall be deemed to be absent from a meeting of the AcSB unless he or she is in attendance
for substantially all of it.
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| 25. |
The AcSB's "year" shall end on March 31. |
Bilingualism
| 26. |
The AcSB shall follow the CICA's bilingualism
policy.
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Funding
| 27. |
The AcSB's activities shall be funded by the CICA. |
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