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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.uk and www.fasb.org, respectively). - The AcSB noted that:
- The proposed issue date for amendments resulting from the IASB’s project on earnings per share has been deferred to the second half of 2010. The AcSB had previously agreed to adopt the proposed amendments with the same effective date as the IASB. The AcSB revised this decision in light of the delay and agreed to adopt any amendments the IASB makes to IAS 33, Earnings per Share, on changeover to IFRSs on January 1, 2011.
- The IASB had issued a collection of amendments to various IFRSs resulting from the latest annual improvements project.
AcSB Planning The AcSB decided to proceed with the establishment of a Discussion Group to provide a forum for public discussion of issues arising with respect to the application of IFRSs. The AcSB expects to recruit members of the group during the summer and to hold a first meeting in the fall of 2009. A notice will be placed on the AcSB’s website inviting expressions of interest. Conceptual Framework The AcSB reviewed the comments received by the IASB, including from Canadians, on the Exposure Draft, “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” (Chapters 1 and 2). The AcSB also considered the tentative decisions the IASB made in considering those comments. As well, the AcSB reviewed the comments received on its corresponding Exposure Draft, “Conceptual Framework — Objective and Qualitative Characteristics.” The AcSB agreed to adopt the final version of Chapters 1 and 2, to be included in the IASB’s “Framework for the Preparation and Presentation of Financial Statements” when IFRSs are incorporated into Canadian GAAP later this year. Chapters 1 and 2 will be applicable to publicly accountable enterprises and other entities that choose to apply IFRSs and will be effective upon changeover or at the same time as in IFRSs, whichever is later. To help publicly accountable enterprises focus on preparing for their changeover to IFRSs in 2011, and as the financial reporting strategies for private enterprises and not-for-profit organizations are not yet finalized, the AcSB decided not to amend existing Section 1000, Financial Statement Concepts. The AcSB agreed that its objective is to have all entities using a common conceptual framework, but the adoption of Chapters 1 and 2 should be dealt with separately for private enterprises and not-for-profit organizations according to the separate strategies for each of these sectors. Derecognition The AcSB continued its discussion of the IASB Exposure Draft, “Derecognition,” which deals with proposed amendments to IAS 39, Financial Instruments: Recognition and Measurement, and IFRS 7, Financial Instruments: Disclosures. The AcSB directed the staff to consult with other stakeholders on the implications of both the proposed approach and the alternative view outlined in the Exposure Draft. The staff was also directed to prepare a comment letter. Economic Environment The AcSB considered matters arising in developing an exposure draft of proposals to converge with international standards on impairment of debt instruments. The AcSB will issue an exposure draft by May 30, 2009 with a 30-day comment period. The AcSB plans to review the responses to that exposure draft in July 2009 and finalize amendments in time for adoption for years ending on or after October 31, 2009. The AcSB decided to monitor closely the IASB’s development of a replacement for IAS 39. The IASB expects to issue an exposure draft in the fourth quarter of 2009. Income Tax The AcSB continued its discussion of the IASB Exposure Draft, “Income Tax.” The staff was directed to prepare a comment letter. Pension Plans The AcSB continued its discussion of financial reporting by pension plans following the 2011 changeover to IFRSs for publicly accountable enterprises. The staff was directed to prepare an exposure draft of proposed amendments to Section 4100, Pension Plans. Revenue Recognition The AcSB continued its discussion of the joint IASB/FASB Discussion Paper, “Revenue Recognition.” The staff was directed to prepare a comment letter. |