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). In particular, the AcSB noted the issue by the FASB and IASB, on February 27, 2006, of “A Roadmap for Convergence between IFRSs and US GAAP – 2006-2008.”

Strategic Planning – Publicly Accountable Enterprises

The AcSB continued discussion of a plan for implementing the convergence of International Financial Reporting Standards into Canadian GAAP for publicly accountable entities. The AcSB expects to publish additional information about the implementation of its Strategic Plan for publicly accountable enterprises by June 30, 2006.

Income Trusts

The AcSB considered input from the Accounting Standards Oversight Council and User Advisory Council, and discussed current financial reporting practices of income trusts. The AcSB Chair intends to convene a meeting of interested parties to discuss further financial reporting issues of this sector.

Financial Instruments – Non-Publicly Accountable Enterprises

Pending completion of research into the needs of users of financial reporting by non-publicly accountable enterprises, the AcSB decided to defer for those entities the mandatory effective date of Sections 3855, Financial Instruments – Recognition and Measurement, 3856, Hedges, 1530, Comprehensive Income, and related consequential amendments. For those entities the standards will become effective for financial statements related to fiscal years beginning on or after October 1, 2007.

Employee Future Benefits

The AcSB discussed the FASB project to require recognition in the balance sheet of the plan sponsor of the under- or over-funded status of a defined benefit post-retirement plan. The AcSB noted that, while this proposal results in increased transparency compared to current US and Canadian GAAP, it is not fully consistent with International Financial Reporting Standards.  The staff was requested to determine whether the IASB intends to make any modifications to IAS 19, Employee Benefits, in this respect.

Offsetting Receivables From and Payables to Customers by Broker Dealers

The AcSB discussed an issue regarding offsetting of receivables and payables in the brokerage industry, and noted that the offsetting requirements in Section 3861, Financial Instruments — Disclosure and Presentation, apply.

Not-for-Profit Organizations

The AcSB discussed input received from its Not-for-Profit Organizations Advisory Committee concerning amendments to the 4400 series of Handbook Sections.  Discussions on this topic will continue at a future meeting.