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Location: Toronto
On February 22, 2022, the Accounting Standards Board released the meeting notes of discussions held by its Private Enterprise Advisory Committee on February 9, 2022.
The following topics were discussed:
Review the meeting notes on the AcSB's Web site.
At its meeting on February 9, 2022, the Private Enterprise Advisory Committee (PEAC) received an update on the Related Party Combinations project and discussed a proposal to widen the scope of Related Party Transactions, paragraph 3840.44, to reference all related party business combinations. Some Committee members supported the proposal and indicated that it would simplify the current accounting for related party combinations. Other Committee members noted that the proposal would result in more combination transactions being captured within paragraph 3840.44(b), and that the current requirement to restate the comparatives in the financial statements of the combined enterprise may prove more burdensome. A few Committee members indicated that, in some instances, it is more cost efficient to obtain independent fair value estimates for the acquired assets and liabilities. The Committee discussed whether relief from the requirement in paragraph 3840.44(b) to restate comparatives would address the challenges raised. The Committee also discussed whether an accounting policy choice should be explored as an option to accommodate circumstances where the carrying values of the acquired assets and liabilities are impracticable to obtain. Some members expressed concern that an accounting policy choice may lead to additional diversity in practice. The AcSB will consider the Committee’s feedback at the February 2022 Board meeting.
At its meeting on February 9, 2022, the Private Enterprise Advisory Committee (PEAC) received an update on the Related Party Combinations project and discussed a proposal to widen the scope of Related Party Transactions, paragraph 3840.44, to reference all related party business combinations. Some Committee members supported the proposal and indicated that it would simplify the current accounting for related party combinations. Other Committee members noted that the proposal would result in more combination transactions being captured within paragraph 3840.44(b), and that the current requirement to restate the comparatives in the financial statements of the combined enterprise may prove more burdensome. A few Committee members indicated that, in some instances, it is more cost efficient to obtain independent fair value estimates for the acquired assets and liabilities. The Committee discussed whether relief from the requirement in paragraph 3840.44(b) to restate comparatives would address the challenges raised. The Committee also discussed whether an accounting policy choice should be explored as an option to accommodate circumstances where the carrying values of the acquired assets and liabilities are impracticable to obtain. Some members expressed concern that an accounting policy choice may lead to additional diversity in practice. The AcSB will consider the Committee’s feedback at the February 2022 Board meeting.
Review the meeting notes on the AcSB's Web site.