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. |
Emerging Issues Committee
The AcSB noted the important contribution of the Emerging Issues Committee (EIC) to the development of Canadian GAAP since it was created in 1988. However, with the adoption of IFRSs and accounting standards for private enterprises scheduled for 2011, and the creation of the IFRS Discussion Group and the Private Enterprises Advisory Committee to help identify issues, the AcSB decided that there was no ongoing role for the EIC. Accordingly, the AcSB decided to advise the Accounting Standards Oversight Council (AcSOC) of its intention to wind up the EIC effective March 31, 2010.
IASB Proposals
Liabilities – Improving IAS 37
The AcSB discussed the IASB’s recent Exposure Draft, “Measurement of Liabilities in IAS 37,” and the pending working draft of the new standard to replace IAS 37. As the IASB’s 2005 proposals to improve IAS 37 were not exposed for adoption in Canada, the AcSB decided that it should issue one exposure draft proposing to adopt the new standard replacing IAS 37, including the “Measurement of Liabilities in IAS 37” proposals, into Part I of the CICA Handbook – Accounting (Handbook).
The AcSB noted that the new standard replacing IAS 37 would significantly affect how some liabilities, such as obligations to settle legal disputes, are accounted for by Canadian entities. Accordingly, the AcSB decided that:
- the staff should prepare a document comparing the new standard to existing Canadian GAAP;
- the staff should develop a response to the IASB’s Exposure Draft;
- it should host a public roundtable on the IASB’s measurement proposals in order to learn the views of stakeholders on those proposals;
- the staff should also hold discussions with various AcSB committees, professional organizations and other stakeholders on the IASB’s measurement proposals in order to develop an informed response; and
- it will discuss the IASB’s proposals further at a future meeting.
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The AcSB also noted that these changes might have an impact on communications amongst auditors, lawyers and their clients.
Conceptual Framework – Reporting Entity
The AcSB discussed the IASB’s pending “Exposure Draft of an improved Conceptual Framework for Financial Reporting: Chapter 2: The Reporting Entity.” The AcSB decided to issue an exposure draft reflecting the IASB’s proposals. To develop an informed response to the IASB, the AcSB agreed that staff should discuss the proposals with the AcSB’s Conceptual Framework Discussion Group.
IFRS Discussion Group
The AcSB received a report on the November 25, 2009 meeting of the newly established IFRS Discussion Group and reviewed a draft of the meeting summary. The AcSB did not object to the Group’s proposed disposition of the issues it discussed and approved the publication of the meeting summary.
Not-for-Profit Organizations
The AcSB agreed to issue, subject to final drafting and approval, an exposure draft seeking comment on its proposal to incorporate accounting standards for not-for-profit organizations into Part III of the Handbook. Part III of the Handbook would apply to not-for-profit organizations that have chosen to apply that Part rather than the International Financial Reporting Standards in Part I.
The AcSB proposes that Part III of the Handbook would comprise, in addition to existing Sections 4400-4470, Sections derived from the following standards for private enterprises in Part II: Section 1000, Financial Statement Concepts; Section 1100, Generally Accepted Accounting Principles; Section 1400, General Standards of Financial Statement Presentation; Section 1500, First-time Adoption; and Section 3031, Inventories. The Sections derived from these standards would contain material included in the standards in Part V that was eliminated in developing the standards in Part II because it was not relevant to private enterprises. These Sections would contain material specifically adapted to not-for-profit organizations. A not-for-profit organization applying the standards in Part III would also apply the standards in Part II to the extent that those standards are of general applicability, or pertain to the organization’s circumstances and there is no relevant standard in Part III.
The AcSB reconfirmed that existing standards for not-for-profit organizations in Part V of the Handbook will remain in effect until the mandatory effective date for adopting the standards in Part III.
Pension Plans
The AcSB decided to expand the scope of the proposed new pension plan standards to include an entity that is separate from a pension plan and whose sole purpose is to hold and invest assets received from one or more pension plans, but does not itself have a pension obligation.
The AcSB agreed to proceed to the written ballot phase of the project with the expectation of issuing the final standards in Part IV of the Handbook in April 2010.
Planning and Strategy
The AcSB discussed a draft plan for its operating year commencing April 1, 2010 and agreed to submit it for review by the AcSOC. The AcSB also discussed an initial draft of its 2009-2010 performance report to the AcSOC.
Private Enterprise Financial Reporting
The AcSB discussed the process to be used in maintaining the accounting standards for private enterprises, and directed the staff to develop terms of reference for the Private Enterprises Advisory Committee, for review at a future meeting.
Extractive Industries
The AcSB deferred until its next meeting a discussion of plans for responding to the IASB’s forthcoming Discussion Paper on Extractive Activities.