Framework for Reporting Performance Measures – AcSOC

Date recorded:

At the Accounting Standards Oversight Council (AcSOC) meeting on October 25-26, 2018, Ms. Mezon, the AcSB Chair, noted that the AcSB is engaged in a robust consultation process regarding its Draft Framework. Public comment closed on October 1, 2018. The Board received feedback from Canadian and international stakeholders. The responses were generally favourable. Most respondents indicated that they were likely to use the guidance, and that it will improve consistency, comparability and transparency in reporting an entity’s performance.

Common themes were that:

  1. separate frameworks should be prepared for public companies, private companies, and NFPOs (the AcSB is not yet persuaded on this suggestion);
  2. a hierarchy is required for different types of performance measures; and
  3. certain aspects of the Draft Framework could be clarified. The Board will consider the feedback and intends to publish a revised Draft Framework in December 2018. Thereafter, the Board will monitor developments to ascertain if updates are required.

Ms. Mezon’s responses to questions included the following:

  1. The Draft Framework is planned to be a principle-based document that is complementary to, and not in conflict with, the proposed Canadian Securities Administrators’ (CSA) National Instrument (NI) 52-112, “Non-GAAP and Other Financial Measures Disclosures.”; and
  2. CSA Instrument NI 52-112 will be a rule. The CSA’s domain deals with non-GAAP measures disclosed by public issuers, while the Draft Framework is intended to be used by public companies, private companies, and NFPOs.

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

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