Disclosure Framework

The AcSB continued its development of a framework for determining the type of information to be included in financial statement note disclosures.

Fair Value Measurement

The AcSB reviewed the latest decisions reached by the US Financial Accounting Standards Board (FASB), together with proposals developed in the AcSB’s research project on Measurement Bases for Financial Accounting — Measurement on Initial Recognition.   The AcSB also noted that the International Accounting Standards Board (IASB) will consider later in September an agenda proposal to develop fair value guidance.  Accordingly, the AcSB agreed to monitor the IASB developments and participate in international discussions before formulating guidance on fair value measurements for Canadian constituents. 

Financial Instruments

The AcSB decided to develop a new standard to replace the disclosure requirements of Section 3861, Financial Instruments — Disclosure and Presentation, based on IFRS 7, Financial Instruments: Disclosures, recently published by the IASB.  The new standard would be available for voluntary adoption at the same time as Sections 3855, Financial Instruments — Recognition and Measurement, 3865, Hedges, and 1530, Comprehensive Income.

Discussions on other-than-temporary impairment were deferred to a future meeting.

Liabilities Other than Financial Liabilities

The AcSB decided not to proceed at this time with a proposal to undertake a project to address the accounting and disclosures for liabilities other than financial liabilities, including contingencies.

Inventories

The AcSB considered the responses received to the Inventory Information Questionnaire researching current practices for measuring inventories, and agreed to continue with its plan to develop a new standard based on IAS 2, Inventories, to supersede Section 3030, Inventories.

Strategic Planning

The AcSB began redeliberating the proposals in its March 2005 Invitation to Comment, “Accounting Standards in Canada: Future Directions — Draft Strategic Plan,” in light of the considerable amount of written and oral input received from a wide range of interested parties.

The AcSB has tentatively decided to continue to pursue the following:

The proposed strategy of adopting International Financial Reporting Standards in place of a separate Canadian GAAP for publicly accountable enterprises (subject to the legal rights certain enterprises have to choose to adopt US GAAP).  The timing and process for a transition will be discussed further, and work will proceed on a detailed implementation plan. The proposed strategy of a separate basis of financial reporting for non-publicly accountable enterprises.  Work will begin as soon as possible on the investigation proposed in the Draft Strategic Plan into the financial reporting needs of this sector.  The proposal to exempt some enterprises from all GAAP standards and various other aspects of the strategy will be discussed further in future meetings. The AcSB will continue its discussions of the key strategic issues in its November and December meetings, including taking account of the advice of the Accounting Standards Oversight Council (AcSOC).  The AcSOC meeting of October 27-28 will include a discussion of the AcSB’s planning.  The strategic planning process is expected to be completed in early 2006.

International Activities

The AcSB considered 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 and the FASB will hold public roundtable discussions with constituents to discuss their June 30, 2005 Exposure Drafts on business combinations and related issues.