At its meeting on February 2, 2017, the PEAC discussed the results of field testing conducted to assess the viability of permitting a classification exception on the condition of retention of control of an enterprise. In particular, the Committee discussed: (i) whether the current guidance in Section 1591, Subsidiaries, is sufficiently robust to address the characteristics of redeemable preferred shares issued in a tax planning arrangement; (ii) the perspective from which control of the enterprise should be considered; and (iii) other conditions that are necessary, in addition to retention of control over the enterprise. Committee members provided feedback on the types of arrangements that would not meet the classification exception and the potential effect on practice. Committee members also provided input on the overall project timeline.

Review the meeting notes on the AcSB's Web site.

At its meeting on February 2, 2017, the PEAC agreed to recommend to the AcSB that the following proposed amendments be approved as exposed:

• Section 1505, Disclosure of Accounting Policies, would require disclosure of accounting policies “in one of the first notes” to the financial statements
• Section 1506, Accounting Changes, would require disclosure of the amount of an adjustment to an accounting policy to the prior period(s) only
• Section 1651, Foreign Currency Translation, would not require the reversal of previously recorded write-downs of inventory in the translated financial statements of an integrated foreign operation
• Section 3065, Leases, would only require disclosure of the amount of the allowance for impairment of operating lease receivables and not the carrying amount of impaired operating lease receivables

The AcSB will discuss the responses to its Exposure Draft and the Committee’s recommendations at its March 2017 meeting.

Review the meeting notes on the AcSB's Web site.

At its meeting on February 2, 2017, Private Enterprise Advisory Committee (PEAC) noted that, to carry out its plan to consult stakeholders about the relative priorities of future ASPE projects, the AcSB is focusing its consultation on the following specific topics at this time: (i) Section 1000, Financial Statement Concepts; (ii) Section 3400, Revenue; and (iii) Section 3840, Related Party Transactions. The Committee also discussed challenges with the application of Section 3840, Related Party Transactions at this meeting. In particular, Committee members discussed: (a) interaction of Section 3840 with Section 3856; (b) challenges with applying the measurement bases in Section 3840; (c) accounting for related party transactions for a non-profit entity; (d) business combinations under common control; and (e) presentation and disclosure. The Committee agreed to advise the AcSB that research should focus on the application challenges with the measurement bases in Section 3840 and business combinations under common control.

 Review the meeting notes on the AcSB's Web site.