Accounting Standards Board
Decision Summary
June 8, 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. |
Accounting Changes
The AcSB decided to defer finalization of this project until the International Accounting Standards Board (IASB) considers possible changes to IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors, to conform more closely to the Financial Accounting Standards Board (FASB) standard recently issued on this subject.
Differential Reporting Advisory Committee
The AcSB approved for exposure amendments to the differential reporting options in:
- Section 3062, Goodwill and Other Intangible Assets, to permit qualifying enterprises to apply the existing differential reporting option subsequent to the adoption of Section 3062; and
- Accounting Guideline AcG-15, Consolidation of Variable Interest Entities, to state that an entity applying the differential option in Section 1590, Subsidiaries, does not apply AcG-15.
The AcSB decided not to approve a differential reporting option proposed by its Differential Reporting Advisiory Committee in respect of Section 3461, Employee Future Benefits. |
Disclosure Framework
The AcSB continued its development of a framework for determining the type of information to be included in financial statement note disclosures.
Earnings per Share
The AcSB decided to proceed to complete this project and to make available on its website a typescript of the revised standard and a Basis for Conclusions document. This typescript is intended to be the final standard unless the FASB identifies any new modifications during re-exposure of their corresponding standard. The typescript is expected to be available in the third quarter of 2005. The effective date for this standard is expected to permit entities to apply the Canadian standard at the same time as the equivalent FASB standard.
Income Taxes
The AcSB discussed recent decisions reached by the FASB in their project on Accounting for Uncertain Income Tax Positions. The AcSB noted that the FASB proposals could have a very significant impact on current practice and instructed staff to monitor closely the FASB activities and any related IASB deliberations on this project, and to review progress in September. At that time, the AcSB plans to consider the need for any amendments to Section 3465, Income Taxes.
Income Trusts
The AcSB received an oral report from its User Advisory Council which urged the AcSB to review the current financial reporting practices of income trusts. The AcSB will consult the Accounting Standards Oversight Council at its June 16-17, 2005 meeting and will consider the issues further at a future meeting.
Strategic Planning
The AcSB continued discussion of matters arising from the proposed strategies in its Draft Strategic Plan. These discussions will continue at future meetings.
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 Trustees of the IASC Foundation have published for comment two consultation documents: “Due Process of IASB: Draft Handbook of Consultative Arrangements,” and “IFRIC — Review of Operations: Consultative Document.” The deadline for public comment on both documents is July 31, 2005.
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