At its meeting on June 19, 2018, the AcSB continued discussing feedback on its Exposure Draft. The Board: (i) confirmed an option to recognize the effect of liability classification in either a separate component of equity or retained earnings; and (ii) decided to provide additional transition relief to assist stakeholders with adopting the amendments. The Board also considered proposed drafting changes relating to determining the related party unit of account and transition guidance. The Board will consider a draft of the Basis for Conclusions at its next meeting in July 2018. The Board will issue the final amendments no later than the fourth quarter of 2018 in conjunction with the narrow-scope amendments to Section 3856, Financial Instruments.

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At its meeting on June 19, 2018, the AcSB considered the advice of its Private Enterprise Advisory Committee relating to proposals to amend Section 3465 and Section 3051/3056. Re Section 3465, the Board decided (i) to remove the example in Section 3465, which is no longer applicable given recent changes to the Income Tax Act (Canada); and  (ii) to require enterprises using the future income taxes method to present future income tax assets and liabilities as non-current and to disclose the amount of future income tax assets and liabilities.  Re Section 3051/3056, the Board decided to clarify the applicability of the cost-method guidance in Section 3051, Investments, by proposing that paragraph 3051.07A should be applied to interests in jointly controlled enterprises that are accounted for using the cost method. The Board directed staff to begin the balloting process for the proposals and plans to issue an exposure draft in September 2018 with comments due in December 2018.R

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At its meeting on June 19, 2018, the AcSB continued discussing feedback from stakeholders and the recommendations from its Private Enterprise Advisory Committee on its Exposure Draft. The Board decided the following (i) Debt instruments quoted in an active market and with observable inputs, issued or exchanged in a related party transaction, should be initially measured at fair value. The Board also decided to provide an accounting policy choice to subsequently measure these instruments at fair value or amortized cost. (ii) Debt instruments not quoted in an active market and without observable inputs, issued or exchanged in a related party transaction, should be initially and subsequently measured at cost. (iii) Guidance on the initial and subsequent measurement of indexed related party financial liabilities should be issued. (iv) Not-for-profit organizations should recognize the forgiveness of related party financial assets in the statement of operations. The Board plans to issue the final amendments no later than the fourth quarter of 2018.

Review the Executive Summary on the AcSB's Web site.