About the Emerging Issues Committee (EIC)

Purpose

The AcSB established the EIC in 1988 to serve the interests of the public by providing a forum for the timely review of emerging accounting issues that are likely to receive divergent or unsatisfactory treatment in practice in the absence of some guidance. Issues addressed by the EIC and its views as to the appropriate accounting treatment for such issues are made publicly available to meet the needs of users, preparers and auditors of financial information. 

Process

The primary responsibility for identification of issues to be considered by the EIC is that of the individual members, the chair and the observer. The EIC considers all items being considered by the US Emerging Issues Task Force (EITF) and the International Financial Reporting Interpretations Committee (IFRIC) to determine whether to add a similar issue to its agenda. In addition, other persons or organizations may submit issues for consideration by the EIC.
 
In deciding whether to add an item to its agenda, the EIC considers the following factors:

• the potential for divergent or unsatisfactory accounting;
• the need for prompt guidance
• the significance of the issue, including the number of transactions affected and the impact on individual transactions and financial statement amounts
• whether there is a reasonable likelihood of reaching a consensus based on existing primary and other sources of GAAP; and
• whether the issue is within the EIC’s mandate, i.e., does not require a change to another primary source of GAAP.

A quorum for meetings of the EIC is ten voting members. Each EIC voting member has one vote. Members vote in accordance with their own independent views, not as representatives of the firm, organization or constituency with which they are associated. The views and votes of individual members are confidential.

The objective of the EIC in reviewing any particular issue is to reach a consensus as to the appropriate accounting practice to be followed. To achieve consensus, no more than two members may dissent. A consensus is published as an “Abstract of Issues Discussed”.

Abstracts are developed in accordance with a due process of consultation and debate. Draft Abstracts are normally posted on the EIC’s website for a period of 30 days for public comment. However, the EIC may reach a consensus to issue an Abstract without requesting public comment.

All comments received on a Draft Abstract are analyzed and discussed by the EIC prior to finalizing the Abstract.

When an Abstract, Draft Abstract or amended Abstract has been approved, it is posted on the EIC’s website. Abstracts and amended Abstracts are incorporated in the CICA Handbook – Accounting in the next Handbook release.

After each meeting, a document summarizing the EIC’s decisions is posted on the EIC’s website as the EIC Decision Summary. In addition, the EIC’s Agenda for each meeting is posted on the EIC’s website at least one week before the meeting.

Membership and Meetings

The EIC comprises:

• a senior member of the AcSB staff as non-voting chair;
• 13 voting members; and
• an observer appointed by the Canadian Securities Administrators.

The AcSB approves the appointment of the chair and the 13 members, subject to the ratification of the Accounting Standards Oversight Council. The EIC includes members with various backgrounds and experience including small and large public accounting firms, small and large enterprises and users of financial statements. The members are selected for their ability to maintain an awareness of current issues as they arise and the technical expertise to resolve them

The current members of the EIC are listed here.

The EIC meets, on average, eight times a year.  The dates of upcoming meetings are posted on the EIC website. Meetings are not open to the public.

How to Provide Input

The EIC would like to hear from, and discuss with, persons or organizations who wish to put forward potential agenda items that they believe meet the EIC’s acceptance criteria (see “Process” above). Suggestions for potential agenda items should describe the issue, state the reasons why the issue should be considered and provide information on alternative accounting views or practices noted.

To obtain more information about the EIC, communicate issues to the EIC or to be considered for membership on the EIC, contact:

Grace Lang, CA
Secretary, Emerging Issues Committee
277 Wellington Street West
Toronto, ON  M5V 3H2
Canada

e-mail grace.lang@cica.ca
phone +1 (416) 204-3478
fax +1 (416) 977-8585.