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 - Consolidation – Investment company exemption
The AcSB discussed the implications of the IASB’s tentative decision in February 2010 that an investment company should be exempted from the requirement to consolidate investments in entities it controls. The IASB decided that, instead, those investments should be reported at fair value. The AcSB reviewed the IASB’s plan to: - discuss and approve the requirements for the exemption at its April 2010 joint meeting with the FASB;
- expose the proposed investment company exemption for public comment; and
- issue the new standard on consolidated financial statements in the fourth quarter of 2010.
The AcSB considered the concerns and views raised by various stakeholders, including regulators and those from the investment and insurance industries, about the implications of the IASB’s project plan for Canada’s transition to IFRSs. The AcSB discussed various possible actions that it might take. The AcSB asked the staff to analyze further the implications of the actions considered, discuss Canadian concerns with the IASB staff and report back at the April 9 meeting on those discussions. Liabilities – Improving IAS 37
The AcSB evaluated the recognition and measurement requirements in the IASB’s working draft of a new standard on liabilities, which includes the proposals in the IASB’s Exposure Draft, “Measurement of Liabilities in IAS 37.” The AcSB questioned the practicality of applying the proposals to legal disputes, and the clarity and consistency of some of the proposed measurement principles. The AcSB decided to submit a comment letter to the IASB and directed the AcSB staff to prepare a draft for review. To hear the views of stakeholders on these proposals, the AcSB is holding a roundtable on Friday, April 30, 2010. To register to participate, click here. The AcSB also noted that comments on the IASB and AcSB Exposure Drafts are now due on May 19, 2010. - Financial Statement Presentation
The AcSB discussed the IASB’s forthcoming exposure draft on the presentation and classification of items of other comprehensive income. The exposure draft will propose amending IAS 1 Presentation of Financial Statements to provide for a single statement of comprehensive income. It is expected to be issued in early April 2010 with a 120-day comment period. The AcSB decided that: - it should issue an exposure draft reflecting the proposals, following their release by the IASB; and
- the staff should discuss the proposals with the AcSB’s User Advisory Council and host a public roundtable in order to learn the views of stakeholders prior to developing a response to the IASB.
- Discontinued Operations
The AcSB discussed the IASB’s forthcoming exposure draft on discontinued operations. The exposure draft will propose amending IFRS 5 Non-current Assets Held for Sale and Discontinued Operations to change the definition of a discontinued operation and require new disclosures about asset disposals. It is expected to be issued in early April 2010 with a 60-day comment period. The AcSB decided that: - it should issue an exposure draft reflecting the proposals, following their release by the IASB; and
- the staff should discuss the proposals with members of the AcSB’s User Advisory Council prior to developing a response to the IASB.
IFRS Discussion Group
The AcSB discussed a report on the meeting of the IFRS Discussion Group held on March 4, 2010. The AcSB was advised about several matters that had been referred to the IASB staff as a result of those discussions. For further information, including a recording of the meeting, click here. Monitoring the IFRS Interpretations Committee
The AcSB approved a process for the staff to monitor the activities of the IASB’s IFRS Interpretations Committee (formerly the International Financial Reporting Interpretations Committee), including responding to the Committee’s tentative decisions not to add some issues to its agenda. As part of that process, the AcSB directed the staff to promote awareness of those tentative decisions on issues that may be prevalent in Canada. Members of the AcSB’s IFRS Discussion Group and other stakeholders will be advised of such tentative agenda decisions in case they may want to submit comments within the 30-day comment period. The Committee posts on the IASB website explanations of why issues have not been added to its agenda as well as other information, such as observer notes that explain and analyze the issues. As this analysis can provide insight on those issues, the AcSB directed its staff to help Canadian stakeholders become more aware of the information available concerning issues on which the Committee has declined to provide an interpretation. Accounting Standards for Private Enterprises The AcSB reviewed the draft terms of reference for its Private Enterprise Advisory Committee. The AcSB noted that the membership of this Committee has been finalized. Member Self-assessment Survey The AcSB discussed the results of a self-assessment survey of members for 2009-2010. Planning and Strategy The AcSB discussed and approved its annual operating plan for 2010-2011 and discussed the development of a new strategic plan. The AcSB agreed to a process for developing a new strategic plan that includes consultations with key stakeholder groups and publication of a draft in mid-2010 for public comment. |
