At the AcSOC meeting on October 20-21, 2016, the PSAB Chair advised that many stakeholders have commented on the measurement of derivative instruments at fair value contained in the existing financial instruments standard. In addition, stakeholders have identified application challenges, suggesting that a hedge accounting model could resolve these issues. PSAB has requested the staff to present a work plan to include a hedge accounting option in the standard.

Review the meeting summary on the AcSOC's Web site.

At the AcSOC meeting on October 20-21, 2016, the AcSB Chair commented on an Accounting Alert issued by Veritas Investment Research in September 2016 that discussed the rise of non-GAAP metrics in performance measurement. Typically these metrics present a rosier picture of a company’s performance to convince investors that the company is worth more than the GAAP figures might indicate. She said that the IASB has undertaken a disclosure initiative research project to improve guidance to assist entities to provide more relevant disclosures. The research project is also considering the issue of non-GAAP measures.

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At the AcSOC meeting on October 20-21, 2016, the AcSB Chair said that she attaches the highest risk related to accounting standards setting to rate-regulated activities. To demonstrate why an IASB project is needed, the AcSB staff researched the decision-usefulness of financial information that reflects the economics of rate- regulated activities. The IASB and many national standard setters have commented on the quality of the resulting research paper and the IASB is currently exploring a suitable accounting model. However, it is not certain that the IASB will develop a standard for these activities. The AcSB intends to identify how to extend its research findings, including working with standard setters in Brazil, Peoples Republic of China, Europe and the U.S.

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At the AcSOC meeting on October 20-21, 2016, the AcSB Chair noted that the IASB expects to issue its new insurance standard in early 2017 after completing an additional round of field testing (from July to October 2016) and a fatal flaw review of the new guidance. In reply to questions from members, Ms. Mezon said that Canadian insurers have a number of concerns with the new proposals, including how contracts will be grouped into portfolios. Also, the U.S. FASB issued a second insurance Exposure Draft in September 2016 with proposed targeted amendments to the proposals in its initial Exposure Draft. While the FASB’s proposed changes would result in U.S. GAAP being more similar to the IASB’s forthcoming new insurance standard and the Canadian asset and liability method used today, the discount rate proposals are different.  The AcSB will be discussing the U.S. proposals and the potential differences with the IFRS guidance with Canadian insurers, the FASB and IASB.

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At the AcSOC meeting on October 20-21, 2016, the PSAB Chair advised that they had received comments from several stakeholders following the issue of the Feedback Statement. The PSAB members reported that the PSAB had discussed extensively stakeholders’ concerns with the government transfers standard and that members were satisfied that appropriate due process had been undertaken.

Review the meeting summary on the AcSOC's Web site.