2018 Annual Improvements – PEAC

Date recorded:

At its meeting on May 3, 2018, the PEAC discussed narrow scope amendments to Section 3465, Income Taxes, and Section 3051, Investments, as follows:

The PEAC considered staff’s proposals on the following two amendments in Section 3465, Income Taxes:

  1. delete example (f) in paragraph 3465.14, which is no longer applicable given recent changes to the Income Tax Act (Canada); and
  2. remove the requirement to segregate future tax assets and liabilities into current and non-current portions when the future tax method is applied. The Committee noted that presenting all future taxes as non-current may affect the financial information reported in some situations. For example, future tax liabilities resulting from holdbacks in the construction industry, which typically unwind in 12-18 months, would no longer appear as current liabilities. The Committee advised the Board to consider supplementing the classification of future tax proposal with additional note-disclosure requirements.

The PEAC discussed a proposal to clarify whether cost-method guidance in Section 3051, Investments, applies to jointly controlled enterprises. The issue arises because paragraph 3051.07A refers only to investments subject to significant influence while Section 3056, Interests in Joint Arrangements, directs stakeholders to Section 3051 when the cost method is used. Committee members considered whether cost-method guidance should be included in Section 3056 or whether paragraph 3051.07A should be amended to specify that it also applies to jointly controlled enterprises. The Committee advised the Board to include a reference to jointly controlled enterprises within paragraph 3051.07A to maintain consistency within the standard.

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

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.