Accounting Standards Board Decision Summary March 22-23, 2016
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. As reported by “The Standard”.
International Financial Reporting Standards
Disclosure Initiative – Materiality
The AcSB discussed the current deliberations of the IASB and the FASB on the definition of materiality. The AcSB directed staff to continue to monitor the Boards’ deliberations and reassess the need for a legal opinion on the interpretation of materiality in regulations and by courts in Canada, if any changes to or conflicts with the IFRS and U.S. GAAP definitions are identified.
IASB Agenda Consultation
The AcSB discussed the feedback the IASB received on its Request for Views, “2015 Agenda Consultation.” As well, Board members advised the AcSB Chair on points to raise with the IASB at the April 2016 meeting of the Accounting Standards Advisory Forum (see the Forum’s Agenda Papers 1-1B). No decisions were made.
IFRS Discussion Group
The AcSB considered the limited research that it directed the staff to undertake on the issue, “IAS 21: Determining Functional Currency.” The AcSB noted that this issue was not widespread among Canadian entities and decided not to raise it internationally because it would not meet the IFRS Interpretations Committee’s agenda criteria. The AcSB noted that certain aspects of the Group’s discussion on this issue require further consideration. The AcSB directed the staff to determine next steps.
The AcSB considered the results of the Group’s December 2015 meeting to determine whether to refer the issue, “IAS 32 and 39: Changes to Convertible Debt,” to the IASB or IFRS Interpretations Committee. The AcSB observed that while this issue may highlight potential improvements to the requirements in IFRS 9 Financial Instruments, the fact pattern discussed is not resulting in significant diversity in practice. The AcSB decided not to raise this issue internationally because it would not meet the IFRS Interpretations Committee’s agenda criteria. The AcSB directed the staff to continue monitoring for other potential application issues related to modification or exchange of debt instruments.
The AcSB also considered a status update on the Group’s various topics that are being monitored.
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