| This summary of Accounting Standards Board (AcSB) projects has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further deliberations by the AcSB. Decisions to publish Handbook material are final only after a formal ballot process. |
Status: Amendments to derecognition disclosure requirements under development. The FASB is undertaking post-implementation review of recent changes to US GAAP. The IASB will assess the results of that post-implementation review to determine whether further improvements and convergence are necessary. Background
Activities to Date
Next Steps
Related Information
Contact Information Background The AcSB’s strategy is to adopt International Financial Reporting Standards (IFRSs) as Canadian GAAP for publicly accountable enterprises for financial statements related to fiscal years beginning on or after January 1, 2011. Consistent with its strategy, the AcSB intends to replace the derecognition requirements in IFRSs that were previously exposed in the AcSB’s April 2008 omnibus Exposure Draft, “Adopting IFRSs in Canada.” Activities to Date The IASB has issued an Exposure Draft proposing amendments to IAS 39, Financial Instruments: Recognition and Measurement, and IFRS 7, Financial Instruments: Disclosures, on derecognition of financial assets and liabilities. The AcSB has also issued an Exposure Draft proposing to incorporate the amendments to IAS 39 and IFRS 7 proposed by the IASB into Canadian GAAP as part of the IFRSs to be adopted by publicly accountable enterprises upon changeover to IFRSs. Early adoption of IFRSs, including the amended standards, will be permitted. To solicit and discuss the views of Canadians on the application of the IASB’s proposals in Canada, the AcSB staff held a roundtable on June 22, 2009. AcSB staff also consulted with other stakeholders on the proposals. On July 31, 2009, AcSB staff submitted a comment letter responding to the IASB’s Exposure Draft. The letter does not support the proposals because they are not considered an improvement over the existing provisions in IAS 39. The letter does support the “alternative view” summarized in the accompanying Basis for Conclusions, with some concerns to be resolved. The AcSB staff letter posted by the IASB is available here. In June 2010, the IASB decided its near-term priority should be improving and converging US GAAP and IFRS disclosure requirements for financial assets transferred to another entity. The IASB and the FASB also agreed to undertake additional research and analysis including a post-implementation review of recent changes to US GAAP, as a basis for determining the nature and direction of any further efforts to improve or converge IFRS and US GAAP. Next Steps The IASB plans to finalize improved disclosure requirements published in 2009 that are similar to recently amended US GAAP requirements. The final amendments will be issued in Part I of the CICA Handbook – Accounting shortly after the IASB issues its final new disclosure requirements, expected in the third quarter of 2010. The FASB will conclude its post-implementation review of the application of its amended derecognition requirements. Based on the results of that review, the IASB will determine whether further improvements and convergence are necessary. The post-implementation review and the IASB’s final assessment of the need for further changes are expected in 2012. Related Information Contact Information Questions or comments on this project should be directed to: Karlene Mulraine, CA, CPA
Principal, Accounting Standards
Telephone: +1 (416) 204-3466
Fax: +1 (416) 204-3412
Canadian Accounting Standards Board
277 Wellington Street West
Toronto ON M5V 3H2 Canada |