Differential Reporting — Amendments to Section 3062 and AcG-15

The AcSB decided that an enterprise that chooses, under the differential reporting options, not to consolidate its subsidiaries, is exempt from the provisions of AcG-15, Consolidation of Variable Interest Entities. The entity would continue to comply with all other sources of GAAP.

Fair Value Measurement

The AcSB discussed apparent differences between the US Financial Accounting Standards Board's (FASB) proposed final Fair Value Measurement standard and the tentative conclusions reached in the AcSB’s work on Measurement Bases for Financial Reporting — Measurement on Initial Recognition, in order to provide input to the International Accounting Standards Board (IASB) deliberations on adopting a standard based on the FASB’s proposed final standard. No decisions were made.

Strategic Planning

The AcSB continued its discussion of issues arising from its March 2005 Invitation to Comment, “Accounting Standards in Canada: Future Directions — Draft Strategic Plan,” in light of the input received.  In particular, the AcSB:

considered the views expressed by the members of the Accounting Standards Oversight Council in their October 27-28, 2005 meeting; and agreed to a proposal to undertake the investigation proposed in the Draft Strategic Plan into the financial reporting needs of non-publicly accountable enterprises. The AcSB expects to continue its substantive discussions of the key strategic issues at a future meeting.

Subsequent Events

The AcSB continued its discussion of the proposals in the March 2005 Re-exposure Draft of revisions to Section 3820, Subsequent Events, in light of comments received. 

Reporting Financial Performance

The AcSB reviewed the tentative decisions of the IASB and FASB relating to Segment A of their joint project on financial performance reporting, and agreed that:

all components of comprehensive income should be presented in a single statement of financial performance that displays a subtotal for net income and a total for comprehensive income; entities with no comprehensive income other than net income in a period should still report comprehensive income; entities should disclose the tax effects associated with each component of other comprehensive income; financial information should be presented in the form of a complete set of general purpose financial statements (comprising the statements of financial position, earnings and comprehensive income, changes in equity and cash flows, as well as notes to the financial statements), and that each financial statement within this complete set should be displayed with equal prominence; and entities should present, at a minimum, a statement of financial position for the current year end and two prior year ends, and statements of: — earnings and comprehensive income; — changes in equity; and — cash flows for the current and prior year. The AcSB directed the staff to communicate these views to the IASB and FASB, and to update the AcSB on expected IASB and FASB decisions regarding the issuance of a Segment A Exposure Draft.