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This summary of Accounting Standards Board (AcSB) decisions has 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. |
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 and www.fasb.org, respectively). The AcSB was informed that the IASB had issued amendments to IFRS 1, First-time Adoption of International Standards, and IAS 27, Consolidated and Separate Financial Statements, to allow first-time adopters to use a deemed cost of either fair value or the carrying amount under previous accounting practice to measure the initial cost of investments in subsidiaries, jointly controlled entities and associates, in the separate financial statements. The IASB has also issued amendments to various IFRSs as a result of its first annual improvements project. The AcSB noted that the International Accounting Standards Committee Foundation Trustees propose to expand the size of the IASB by two members, to 16, with a revised geographic representation, and to create a Monitoring Group to oversee the activities of the Trustees. Roundtable discussions on the proposals will be held on June 19, 2008, with written comments being requested by September 15. Conceptual Framework The IASB and FASB have issued an Exposure Draft of “An Improved Conceptual Framework for Financial Reporting: Chapter 1: The Objective of Financial Reporting and Chapter 2: Qualitative Characteristics and Constraints of Decision-useful Financial Reporting Information,” and a Discussion Paper on related preliminary views for “the reporting entity.” The AcSB agreed on plans for responding to each of these documents, including consultation with a group of conceptual framework advisors. The AcSB also encourages stakeholders to respond directly to these documents, which are available for comment at www.iasb.org (see Open to Comment). - IASB Exposure Draft – Objective and Qualitative Characteristics
For adoption into Canadian GAAP, the AcSB requested staff to develop a Canadian Exposure Draft that will propose: - for publicly accountable enterprises, replacing the respective parts of the IASB Framework for the Preparation and Presentation of Financial Statements with the IASB’s proposed Chapter 1 and 2, in full, and without modification; and
- for private enterprises and not-for-profit organizations, amending Section 1000, Financial Statement Concepts, and consider providing additional guidance.
The Canadian Exposure Draft will request comments on whether these improved framework concepts will lead to inappropriate results if they are applied in Canada, and with regard to their applicability to private enterprises and not-for-profit organizations. The Exposure Draft will be issued by the end of July 2008 with a three-month comment period. IASB Discussion Paper – The Reporting Entity
The AcSB will consider the adoption of the concepts in this Discussion Paper into Canadian GAAP once the IASB has issued an Exposure Draft on these proposals. Income Taxes The AcSB considered the process to be used for incorporating planned revisions to IAS 12, Income Taxes, into Canadian GAAP. The IASB and FASB are expected to issue simultaneous proposals for converging their respective standards on income taxes, except for the treatment of uncertain tax positions. The AcSB noted that, given the current time frame for the project, it is unlikely IAS 12 will be incorporated into Canadian GAAP prior to the adoption of IFRSs by publicly accountable enterprises. The AcSB concluded that it will publish the proposals in Canada as soon as possible after the IASB publishes them. The IASB Exposure Draft is expected later this year. |
