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Accounting Standards Board
Decision Summary
April 6, 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. |
Financial Instruments
The AcSB considered a report on the Canadian and IASB roundtable discussions of the
International Accounting Standards Board's (IASB) proposal
to provide additional guidance on the application of the fair value measurement option in IAS 39,
Financial Instruments: Recognition and Measurement. The AcSB requested staff to prepare a written response to the IASB for the AcSB to
consider. This response would express the AcSB’s concerns about the proposal to add criteria limiting
the circumstances in which the option may be applied.
Non-Monetary Transactions
The AcSB approved, subject to written ballot, revisions to Section 3830, Non-Monetary Transactions, and related amendments to other Sections. The new
requirements, which are substantially the same as the Exposure Draft, are effective for transactions
initiated in fiscal periods beginning on or after January 1, 2006. Earlier adoption is permitted only
as of the beginning of a fiscal period beginning on or after July 1, 2005.
Stock-Based Compensation and Other Stock-Based Payments
The AcSB deferred a decision on whether to amend Section 3870, Stock-Based
Compensation and Other Stock-Based Payments, to harmonize it with US Financial Accounting Standards
Board (FASB) Statement of Accounting Standards No. 123R, Share-Based Payment
(FAS 123R), for the measurement of cash-settled stock appreciation rights (SARs). This amendment would
converge Section 3870 with IFRS 2, Share-Based Payment, on this issue. The
AcSB requested staff to ascertain the prevalence of SARs among Canadian companies that are also SEC
registrants.
International Activities
The AcSB received reports on recent meetings of the IASB and FASB (see www.iasb.org.uk and www.fasb.org,
respectively). In particular, the AcSB noted that:
- the IASB has recently issued for comment, by July 29, 2005, a draft Memorandum of Understanding, on “The
Role of National Standard Setters and Regional Accounting Standard-Setting Bodies and Their Further
Relationships with the IASB” and
- the SEC staff issued Staff Accounting Bulletin No. 107, providing guidance on FAS 123R.
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