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Accounting Standards Board
Decision Summaries
These summaries of Accounting Standards Board (AcSB) decisions have 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, including the decisions summarized below, please refer to the
project summaries under
Projects
, which will be updated within the month following an AcSB meeting. |
March 13, 2007 Meeting
Not-for-Profit Organizations
The AcSB concluded its discussions of proposed improvements to its standards for
not-for-profit organizations. These proposals were developed with the assistance of the Not-for-Profit
Organizations Advisory Committee. The AcSB has approved an Exposure Draft of proposed amendments to the 4400
series of Handbook Sections, subject to final drafting and a written ballot.
April 11, 2007 Meeting
International Activities
The AcSB received reports on recent meetings of the International Accounting Standards Board
(IASB) and US Financial Accounting Standards Board (FASB) (see www.iasb.org.uk and www.fasb.org,
respectively).
The AcSB was informed that the IASB has issued its revised standard IAS 23, Borrowing Costs, which eliminates the option of expensing financing costs that are
directly attributable to the acquisition, construction or production of a qualifying asset. The AcSB does not
plan to adopt corresponding changes to Canadian GAAP prior to the changeover to IFRS for publicly accountable
enterprises.
Frank D’Andrea of Hydro One Networks has been appointed to the IASB’s Employee Benefits
Working Group.
Publicly Accountable Enterprises Strategy
- The AcSB discussed a plan for the progress review envisaged in its “Strategic Plan” and
“Implementation Plan for Incorporating IFRSs into Canadian GAAP.” The AcSB confirmed that the progress review
is not meant to reconsider its IFRS convergence strategy. The review will consider new information that may
not have been available when the strategy was first adopted and assess the continued appropriateness of the
timing originally proposed for the changeover. The plan provides for the issuance in the next few months of a
request for constituents to comment as part of the review process. Constituents will be asked to comment
on:
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- the completeness of the information gathered to assess the continued appropriateness of the originally
proposed plan and the timing for changeover; and
- the AcSB’s ongoing evaluation of that information.
Going Concern
The AcSB approved, subject to written ballot, the adoption of the requirements for assessing
and disclosing an entity’s ability to continue as a going concern from International Financial Reporting
Standard IAS 1, Financial Statement Presentation. The new requirements are
effective for interim and annual financial statements relating to fiscal years beginning on or after January
1, 2008.
Materiality
The AcSB considered a project to develop guidance on materiality that would be harmonized
with the FASB’s proposed guidance on this topic and the US Securities and Exchange Commission’s Staff
Accounting Bulletin No. 108, but decided not to initiate such a project.
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