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 IASB Proposals
The AcSB discussed the International Accounting Standards Board’s (IASB’s) recent Exposure Drafts, “Improvements to IFRSs,” and “Rate-regulated Activities.” The AcSB decided that: - it should issue an exposure draft reflecting the proposals in the IASB Exposure Draft, “Improvements to IFRSs”;
- staff should develop a response to the Exposure Draft on “Improvements to IFRSs”;
- it should host a public roundtable on rate-regulated activities on October 27 or 28 in order to learn the views of stakeholders on the IASB’s proposals in this area; and
- the AcSB will respond to the Exposure Draft on “Rate-regulated Activities.”
International Accounting Standards Committee Foundation Proposals
The AcSB discussed the proposals in the International Accounting Standards Committee Foundation (IASCF) Trustees’ Discussion Document, “Part 2 of the Constitution Review, Proposals for Enhanced Public Accountability.” The AcSB proposes to submit a joint response together with the Accounting Standards Oversight Council. Accounting Standards for Private Enterprises The AcSB completed its review of the responses to the Exposure Draft, “Generally Accepted Accounting Principles for Private Enterprises,” and approved the final standards subject to drafting changes and a written ballot. The standards for private enterprises will be effective for fiscal years beginning on or after January 1, 2011, with early adoption permitted. The AcSB intends to issue the standards late in the fourth quarter of 2009 so that they may be used for 2009 calendar year-end reporting. The AcSB approved the following significant changes to the Exposure Draft proposals: - Financial Instruments
| — | A fair value option has been added permitting an enterprise to elect fair value measurement for any instrument. This election will be made on initial recognition and is irrevocable. | | — | Enterprises should capitalize transaction costs for financial instruments measured at amortized cost. |
- Employee Future Benefits
| — | The scope of the simplified approach for defined benefit plans has been widened to include all defined benefit plans. Enterprises adopting the simplified approach must use this approach for all defined benefit plans. |
- EIC Abstracts
| — | Principles in several EIC Abstracts relating to financial instruments, revenue, income taxes and related party transactions have been incorporated into the standards. |
- Disclosures
| — | Requirements to disclose management compensation and amounts of government remittances in arrears have been deleted. Some changes have been made to other disclosure requirements. |
The AcSB also clarified or modified other exposure draft proposals in the light of comments received. Not-for-Profit Organizations The AcSB began deliberations on the comments received on the Invitation to Comment, “Financial Reporting by Not-for-Profit Organizations,” issued jointly by the AcSB and the Public Sector Accounting Board (PSAB). The AcSB confirmed that existing standards for not-for-profit organizations will remain in effect until the completion of due process for changing those standards. When the AcSB has formulated specific proposals on the future direction for setting standards for the not-for-profit sector, in co-operation with the PSAB, it will issue an Exposure Draft to provide stakeholders with the opportunity to provide input on the proposals, including the timing of any changeover from existing standards. |