Financial Instruments:
Amortized Cost and Impairment – Roundtable Discussion

Are the proposed new requirements for recognizing interest income and measuring impairment in financial assets appropriate for adoption in Canada?

Share your views at a roundtable on Friday, April 30, 2010.

The International Accounting Standards Board (IASB) has published an Exposure Draft, “Financial Instruments: Amortised Cost and Impairment,” proposing new requirements for financial assets measured at amortized cost. The AcSB has also issued an Exposure Draft proposing to adopt the new standard in Canada when issued. Comments to the AcSB and the IASB are due by June 15, 2010 and June 30, 2010, respectively.

The AcSB encourages Canadian stakeholders to respond directly to the IASB on its Exposure Draft. The AcSB will be doing the same. The AcSB is holding a roundtable in order to provide participants who have reviewed and considered the application of the proposals in Canada with the opportunity to share their views before finalizing their responses. The discussions will also assist the AcSB in developing an informed comment letter to the IASB.

To evaluate the proposals, the AcSB is seeking views on:

• whether the requirement to include expectations of future credit losses in the calculation of the effective interest rate of a financial asset to be measured at amortized cost is appropriate;
• your ability to estimate future credit losses on each financial asset at each reporting date; and
• whether you think the proposed measurement and disclosure requirements will provide better information about the credit quality of financial assets measured at amortized cost.
     

The roundtable will be held from 9:30-11:30 EDT on Friday, April 30, 2010 in Toronto. Arrangements can be made for interested parties located outside of Toronto to take part.

To participate, register by contacting Florita Dinglasan at florita.dinglasan@cica.ca or Marites Alvarez at marites.alvarez@cica.ca by Friday, April 23, 2010. When registering, please identify your organization and location. In case of oversubscription, the AcSB might need to limit attendance to one individual per organization.