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 reports included an update on recent IASB and FASB decisions concerning the issuance of an Exposure Draft on issues included in Segment A of their joint project on Financial Performance Reporting. Like the FASB, the AcSB decided to delay the issuance of an Exposure Draft until preliminary views have also been reached on the Segment B issues.

The AcSB also noted the recent reappointment of the IASB Chairman, Sir David Tweedie, for a second five-year term and the appointment of new IASC Foundation Trustees.

Strategic Planning (See also related media release.)

The AcSB completed its redeliberation of the proposals in its March 2005 Invitation to Comment, “Accounting Standards in Canada: Future Directions — Draft Strategic Plan.” The AcSB confirmed the basic directions proposed, but also agreed to some modifications to the plan to clarify certain matters and address concerns raised by respondents to the Invitation to Comment and members of the Accounting Standards Oversight Council.  The AcSB will publish a final version of the Strategic Plan following redrafting of the proposals.

The AcSB discussed the development of more detailed implementation plans for carrying out its strategies. The AcSB discussed elements of a plan for achieving convergence of Canadian GAAP for publicly accountable enterprises with International Financial Reporting Standards, which is expected to be published in June 2006. The AcSB also discussed some initial findings of research into private business reporting needs. That research, expected to be completed later in 2006, will provide a basis for the next steps in carrying out the strategy for non-publicly accountable enterprises.

Conceptual Framework

The AcSB discussed the tentative decisions reached by the IASB and FASB on the Objectives of Financial Reporting and Qualitative Characteristics of Financial Information as part of their joint Conceptual Framework project, and provided comments for consideration by the IASB/FASB project team.

Uncertain Tax Positions

The AcSB reviewed progress made by the FASB in its project on Accounting for Uncertain Tax Positions and the recent IASB deliberations on this topic. The AcSB decided not to proceed with a project to adopt the FASB’s expected interpretation on uncertain tax positions.  The AcSB expects to develop an Exposure Draft in mid-2006 to adopt the globally converged standard on income taxes resulting from the proposals in the joint IASB/FASB short-term convergence project on this topic.  The new standard is expected to include consideration of accounting for uncertain tax positions.

Financial Instruments — Other-than-Temporary Impairment

The AcSB reviewed the recently released FASB staff position FAS 115-1 and FAS 124 1, “The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments.”  The AcSB concluded that the staff position would not significantly improve the guidance that already exists in Canadian GAAP regarding the determination of when an other-than-temporary impairment has occurred.  Accordingly, the AcSB decided not to propose any change to Canadian GAAP in this regard.