At the AcSOC meeting on October 26-27, 2017, the AcSB Chair reported that the IASB has completed a case study to assess whether regulatory balances can be classed as assets or liabilities, is exploring the measurement process and is developing an accounting model for this topic. The AcSB considered AcSOC’s earlier recommendation to issue separately its updated research paper on the decision-usefulness of financial information that reflects the economics of rate-regulated activities. The Board affirmed its decision to issue the paper in conjunction with the IASB’s next document for comment.

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

At the AcSOC meeting on October 26-27, 2017, the Director, Accounting Standards of the AcSB reported that the proposed exception in the recently issued Exposure Draft to treat shares issued in a tax planning arrangement as equity when certain specified conditions are met is a compromise, as these shares are conceptually financial liabilities. This would result in a change in practice that would be significant for some, but represents a compromise from the full removal of the option for an exception from liability treatment. The AcSB has formulated a comprehensive consultation plan and will consult with stakeholders across Canada.

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

At the AcSOC meeting on October 26-27, 2017, the PSAB Chair advised that the PSAB is reviewing its approach to International Public Sector Accounting Standards (IPSAS). In this regard, in response to a question, the Chair said that a number of G20 countries already follow IPSASs to varying degrees, with some notable exceptions such as Germany. The European community is progressing quickly in assessing IPSASs as the basis for public sector accounting. Given its multiplicity of sovereign governments, it might emerge as a relevant model for Canada but it is too early to tell. The International Public Sector Accounting Standards Board is conducting an initial worldwide survey of countries’ relative positioning regarding IPSASs adoption. The results will be available in 2018.

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

At the AcSOC meeting on October 26-27, 2017, the AcSB Chair reported that AcSB’s process to incorporate IFRS 17 into Canadian GAAP is underway. Both the Board and the IASB are forming transition resource  groups. The IASB group includes a representative from one of Canada’s large life insurers and AcSB member Charles Henaire, Deputy Chief Financial Officer of Great-West Lifeco, will chair the Board’s group. The AcSB’s risk attached to this project is that there will be a delay in the endorsement processes in Europe, and Canada will end up being the initial implementer of the new standard. Given that the Board has committed (through its Strategic Plan) to take the necessary action should this circumstance occur, the Board will closely monitor the situation.

In addition, Micheline Dionne, a member of the Executive Committee of the International Actuarial Association and Chair of its Insurance Accounting Task Force charged with writing the actuarial model standards on insurance, provided details of a model standard of actuarial practice (ISAP 4) being developed to accompany IFRS 17, Insurance Contracts.

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