Abstracts Approved
EIC-160, Stripping Costs Incurred in the Production Phase of a Mining Operation
Draft Abstract D56 (now EIC-160) was posted on the CICA website October 17, 2005 for public comment by November 15, 2005.
The Committee reviewed the comments received and, as a result, changed the Basis of Application to apply to stripping costs incurred in fiscal years beginning on or after July 1, 2006 and to note that earlier adoption is encouraged. None of the changes affect the consensuses.
The Committee approved D56 as a final Abstract. It is expected that EIC-160 will be posted on the CICA website at the beginning of March 2006. D56 will remain on the website until EIC-160 is posted.
EIC-161, Discontinued Operations
Draft Abstract D43 (now EIC-161) was posted on the CICA website December 14, 2005 for public comment by January 23, 2006. EIC-161 will replace EIC-45, "Discontinued Operations," once it is issued.
The Committee reviewed D43 and changed the Basis of Application as follows: “Previously reported operating results related to dDisposal transactions initiated within an enterprise’s fiscal year that includes the date of the Abstract may be reclassified to reflect the consensuses.”
The Committee clarified certain aspects of the Illustrative Examples. None of the changes affect the consensuses.
The Committee approved D43 as a final Abstract. It is expected that EIC-161 will be posted on the CICA website by the beginning of April 2006. D43 will remain on the website until EIC-161 is posted.
The Committee agreed to withdraw EIC-45 once EIC-161 is issued.
Abstracts to be Withdrawn or Amended
The Committee began its review of certain EIC Abstracts that are impacted by the new financial instruments standards. No decisions were reached.
These discussions will continue at future meetings.
Potential Abstracts
Stock-Based Compensation
The Committee discussed the issue of how to account for the compensation cost attributable to a share-based payment award to an employee who is eligible to retire at the grant date or becomes eligible to retire during the vesting period when the share-based payment award plan contains provisions that allow a retired employee to continue vesting in the award.
The Committee noted that there exists diversity in practice as to how to account for these costs. The Committee tentatively agreed that all of the compensation costs attributable to such an award granted to a retirement-eligible employee should be recognized on the grant date because the employee may retire from the company at any point and retain the award. The Committee requested that staff develop a Draft Abstract on this basis for further discussion at its March 30 meeting.
Offsetting Receivables from and Payables to Customers by Brokers
The Committee discussed certain issues that were raised following its conclusions on this topic that were included in the September 29, 2005 EIC Decision Summary. Those conclusions were that payables and receivables from unsettled regular-way transactions are subject to the guidance in CICA 3855 and 3861.
Subsequent to the February 16, 2006 EIC meeting, the AcSB discussed the issue and noted that the offsetting requirements in Section 3861 apply.
Issues Considered and Added to the EIC Agenda
Future Income Tax Classification of Partnership Income
The Committee discussed a paper setting out the issues around future income tax classification related to partnership income and agreed to add this issue to its agenda.
