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Accounting Standards Board
Decision Summary
March 2, 2005
This summary of Accounting Standards Board (AcSB) decisions has been
prepared for information purposes only. Decisions reported are tentative and reflect only the current status
of discussion on projects, which may change after further deliberations by the AcSB. Decisions to publish
Handbook material are final only after a formal ballot process.
For more detailed information on AcSB projects, please refer to the project summaries under Projects, which will be updated within
the month following an AcSB meeting. |
Canadian/US GAAP Differences
The AcSB considered a summary report of a survey of Canadian/US GAAP differences in a
sample of 2003 annual reports. The AcSB discussed whether, and if so how to inform interested
stakeholders of the results of the survey.
Contingently Convertible Debt Instruments (Co-Cos)
The AcSB agreed that it would be useful if the Emerging Issues Committee were to
provide guidance on the treatment of these instruments (of the type described in EITF No. 04-8, The Effect of Contingently Convertible Instruments on Diluted Earnings per
Share), in the calculation of diluted earnings per share.
Financial Instruments
The AcSB considered the consequences of international developments for future work on
financial instruments. The AcSB agreed to commence work to improve disclosures about financial
instruments, in light of forthcoming changes to International Financial Reporting Standards (IFRS), and to
consider whether to enhance the Canadian guidance on other-than-temporary impairment when international
developments become clearer (probably in the second quarter of 2005). The AcSB will continue to monitor
other international activities related to financial instruments, as well as continue the work of its
Financial Instruments Working Group and its project on Fair Value Measurement.
Income Taxes
The AcSB considered a report on the short-term convergence project between the International Accounting
Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) on income taxes. The AcSB
requested that its staff develop a proposal for a project to amend Section 3465, Income Taxes, to take into account amendments made in the course of the IASB/FASB
project. The project proposal will include a consideration of the FASB’s deliberations relating to uncertain
tax positions.
Inventories
The AcSB continued its discussion of the key principles and issues related to inventories. The AcSB
directed its staff to undertake further research into how companies currently measure their inventories
before developing an exposure draft. Completion of an exposure draft is expected to be delayed.
Non-Monetary Transactions
The AcSB continued its deliberations of proposed amendments to Section 3830, Non-monetary Transactions.
Strategic Planning
The AcSB considered the views of the Accounting Standards Oversight Council on its draft strategic plan
and approved the plan for public comment, subject to final drafting and a written ballot. The plan is
expected to be posted on the AcSB website by early April, for comment by July 31, 2005.
To assist interested stakeholders in assessing one aspect of the draft strategic plan, the AcSB agreed
that a staff summary of significant Canadian GAAP/IFRS differences should be published at the same time as
the plan. A more comprehensive analysis of Canadian GAAP/IFRS differences will be published while the
strategic plan is open for comment.
International Activities
The AcSB received reports on recent activities of the IASB and the FASB (see www.iasb.org.uk and www.fasb.org,
respectively). The AcSB noted the following:
- The IASB is developing a questionnaire to gather more information about the needs of
non-publicly accountable entities, and anticipates holding roundtable discussions on this topic in September
2005.
- The American Institute of Certified Public Accountants has published the results of a survey of private
business financial reporting in the United States.
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