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Accounting
Standards Board
Decision Summary
October 16, 2007
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. |
Joint Arrangements
The AcSB confirmed that it intends to adopt the final IASB standard on Joint Arrangements, which will
replace the current Section 3055, Interests in Joint Ventures. Accordingly,
the AcSB will expose for comment the proposals in IASB Exposure Draft ED 9, “Joint Arrangements,” in the
fourth quarter of 2007. The AcSB proposes, subject to the views expressed by respondents, that the standard
proposed in ED 9 would become mandatory in Canada as part of the changeover to IFRSs expected in 2011.
However, earlier adoption would be permitted once the IASB issues its standard.
As part of the adoption of this IASB standard in Canada, the AcSB intends to take the guidance for joint
venture transactions in Section 3055 and add it to the standard, since the guidance is not contained within
the exposure draft itself. Conversely, the AcSB has decided not to make other conforming changes to existing
Canadian GAAP and, therefore, recognizes that Canadian GAAP and IFRSs may differ prior to changeover to
IFRSs. For example, the IASB standard includes additional requirements that align with IAS 28, Investments in Associates, that current Canadian GAAP and, in particular, Section 3051,
Investments, does not have.
The AcSB encourages Canadian constituents to respond to the IASB on ED 9 since this will become part of
Canadian GAAP on adoption of IFRSs. The AcSB requests that comment letters be sent directly to the IASB with
a copy to the AcSB. In addition, the AcSB intends to request input from Canadian constituents concerning the
timing of adoption of the proposed IASB standard and the appropriateness of the proposals for Canadian
entities. The AcSB requests that these comments be sent only to the AcSB.
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