Business Combinations

The AcSB discussed various issues related to the Business Combinations project, in light of concerns expressed by certain respondents to the International Accounting Standards Board (IASB) and US Financial Accounting Standards Board (FASB) Exposure Drafts on a number of significant issues.

Differential Reporting

The AcSB discussed comments received in response to its August 2005 Exposure Draft, "Differential Reporting Amendments to Section 3062 and AcG-15." 

The AcSB approved, subject to written ballot, amendments to Section 3062, Goodwill and Other Intangible Assets, and AcG-15, Consolidation of Variable Interest Entities.  The new requirements are substantially the same as those proposed in the Exposure Draft, and will be effective for fiscal years ending on or after December 31, 2005.

The AcSB also discussed the differential reporting option in Section 3055, Interests in Joint Ventures, and whether clarification should be made in respect of the differential reporting option in that Section and AcG-15.  The AcSB will continue to discuss this issue at its November meeting.

Financial Instruments

The AcSB affirmed its previous decision that, for the purpose of a transfer of a financial asset classified as available for sale in a related party transaction that is measured at carrying amount, carrying amount is net of any balance in accumulated other comprehensive income related to that asset. 

Discussion of other-than-temporary impairment was deferred to a future meeting.

Subsequent Events

The AcSB commenced discussion of the comments received in response to the March 2005 Re-exposure Draft of proposed revisions to Section 3820, Subsequent Events.  Discussions on this topic will continue at a future meeting.