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Parliament Passes Bill S-211: The New Forced Labour and Supply Chain Reporting Law

May 30, 2023

On May 3, 2023, the Canadian Parliament passed Bill S-211, An Act to enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act and to amend the Customs Tariff (Act). The Act is expected to receive royal assent shortly and will take effect on January 1, 2024, imposing significant reporting obligations on Canadian businesses and importers.

Reporting obligations will apply to any private-sector entity (defined below) that is: (i) producing, selling or distributing goods in Canada or elsewhere; (ii) importing into Canada goods produced outside Canada, or (iii) controlling an entity engaged in either of the above activities.

An "entity" is defined as a corporation or a trust, partnership or other unincorporated organization that: (i) Is listed on a stock exchange in Canada; (ii) has a place of business in Canada, does business in Canada or has assets in Canada and, based on its consolidated financial statements, has met at least two of the following three conditions in at least one of its last two financial years: (a) had at least C$20-million in assets; (b) generated at least C$40-million in revenue; (c) employed an average of at least 250 employees, or (iv) Is prescribed by regulations (although no such regulations have yet been promulgated)

Reporting obligations will also apply to all federal government institutions, ministries and departments, including Crown corporations and wholly owned subsidiaries, that are producing, purchasing or distributing goods in Canada or elsewhere.

The first report will be required to be filed on or before May 31, 2024.

Re­view the article on Blake, Cassels & Graydon LLP's website and the Act on the Parliament of Canada website.


IASB publishes second request for information on the post-implementation review of IFRS 9

May 30, 2023

On May 30, 2023, the International Accounting Standards Board (IASB) has issued a request for information (RFI) seeking comments from stakeholders to identify whether the impairment requirements in IFRS 9, Financial Instruments, provide information that is useful to users of financial statements; whether there are requirements that are difficult to implement and may prevent the consistent implementation of the standard; and whether unexpected costs have arisen in connection with applying or enforcing the standard.

The IASB has decided that while reviewing IFRS 9 in its entirety, it will do so in three parts:

  • In 2022, the IASB completed its review of the classification and measurement requirements, concluding that these requirements are working as intended.
  • With the request for information published today, the IASB is seeking feedback on the impairment requirements.
  • The IASB will seek feedback separately on the hedge accounting requirements.

After discussing feedback from outreach, the Board decided in February 2023 to examine further:

  • the general approach to recognition of expected credit losses (ECL),
  • significant increases in credit risk,
  • the measurement of ECL,
  • the prevalence of particular questions from entities on how to apply the ECL requirements to purchased or originated credit-impaired financial assets,
  • the simplified approach to recognition of ECL for trade receivables, contract assets and lease receivables,
  • the accounting for loan commitments, collateral and other credit enhancements held, and issued financial guarantee contracts that are in scope of IFRS 9,
  • the application of the ECL requirements alongside other requirements in IFRS 9 or in other IFRS Accounting Standards,
  • the effects of transition reliefs provided by the IASB and the balance between reducing costs for preparers of financial statements and providing useful information to users of financial statements,
  • and the disclosure requirements for credit risk in IFRS 7.

Comments on the RFI are requested by September 27, 2023.

Review the press release and the Request for Information on the IASB website.



IASB issues podcast on latest Board developments (May 2023)

May 30, 2023

On May 30, 2023, the International Accounting Standards Board has released a podcast featuring IASB Chair Andreas Barckow and Executive Technical Director Nili Shah discussing deliberations at the May 2023 IASB meetings.

Highlights of the podcast include discussions on:

  • Supplementary meeting on proposed amendments to the IFRS for SMEs Accounting Standard on international tax reform.
  • Decisions and developments related to the projects on primary financial statements, disclosure initiative — subsidiaries without public accountability: disclosures, dynamic risk management, business combinations — disclosures, goodwill and impairment, and management commentary.

Access the podcast on the IASB website.


IASB publishes amendments to IAS 7 and IFRS 7 regarding supplier finance arrangements

May 25, 2023

On May 25, 2023, the International Accounting Standards Board (IASB) has published 'Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)' to add disclosure requirements, and ‘signposts’ within existing disclosure requirements, that ask entities to provide qualitative and quantitative information about supplier finance arrangements.


The IFRS Interpretations Committee received a submission about supply chain finance arrangements asking:

  • How an entity presents liabilities to pay for goods or services received when the related invoices are part of a supply chain finance (or reverse factoring) arrangement; and
  • what information about reverse factoring arrangements an entity is required to disclose in its financial statements.

In response to that submission, the Committee published an agenda decision in December 2020. However, feedback and input received — in particular from investors and analysts — suggested the information entities provide about supplier finance arrangements applying existing IFRS requirements does not meet all investor information needs.

In response to that feedback, the Board decided to amend IAS 7, Statement of Cash Flows, and IFRS 7, Financial Instruments: Disclosures to add disclosure requirements, and ‘signposts’ within existing disclosure requirements, that ask entities to provide qualitative and quantitative information about supplier finance arrangements.

Key changes

The amendments in Supplier Finance Arrangements (Proposed amendments to IAS 7 and IFRS 7)

  • Do not define supplier finance arrangements. Instead, the amendments describe the characteristics of an arrangement for which an entity is required to provide the information. The amendments note that arrangements that are solely credit enhancements for the entity or instruments used by the entity to settle directly with a supplier the amounts owed are not supplier finance arrangements.
  • Add two disclosure objectivesEntities will have to disclose in the notes information that enables users of financial statements
    • to assess how supplier finance arrangements affect an entity’s liabilities and cash flows and
    • to understand the effect of supplier finance arrangements on an entity’s exposure to liquidity risk and how the entity might be affected if the arrangements were no longer available to it.
  • Complement current requirements in IFRSs by adding to IAS 7 additional disclosure requirements about:
    • the terms and conditions of the supplier finance arrangements;
    • for the arrangements, as at the beginning and end of the reporting period:
      • a) the carrying amounts of financial liabilities that are part of the arrangement and the associated line item presented;
      • b) the carrying amount of financial liabilities disclosed under a) for which suppliers have already received payment from the finance providers;
      • c) the range of payment due dates (for example, 30 to 40 days after the invoice date) of financial liabilities disclosed under a) and comparable trade payables that are not part of a supplier finance arrangement; and
    • the type and effect of non-cash changes in the carrying amounts of the financial liabilities that are part of the arrangement.

The IASB decided that, in most cases, aggregated information about an entity’s supplier finance arrangements will satisfy the information needs of users of financial statements.

  • Add supplier finance arrangements as an example within the liquidity risk disclosure requirements in IFRS 7.

Effective date and transition

An entity applies the amendments to IAS 7 for annual reporting periods beginning on or after 1 January 2024 (with earlier application permitted) and the amendments to IFRS 7 when it applies the amendments to IAS 7. There is a certain amount of transition relief provided, including relief regarding comparative information and interim period information.

Review the press release on the IASB website.


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IAASB Digital Technology Market Scan: Internet of Things

May 24, 2023

On May 24, 2023, the IAASB released a Digital Technology market scan exploring the Internet of Things Tecnology, focusing on Networks for Asset Monitoring and Data Generation, a technology that enables real time tracking, managing and monitoring of business processes and assets.

Topics covered include:

  • What is the Internet of Things? Why is it important?
  • The latest developments
  • What this might mean for the IAASB

Access the market scan on the IAASB website.


IASB publishes amendments to IAS 12 to provide a temporary exception to the requirements regarding deferred tax assets and liabilities related to pillar two income taxes

May 23, 2023

On May 23, 2023, the International Accounting Standards Board (IASB) has published 'International Tax Reform — Pillar Two Model Rules (Amendments to IAS 12)' to respond to stakeholders’ concerns about the potential implications of the imminent implementation of the OECD pillar two model rules on the accounting for income taxes.


In March 2022, the OECD released technical guidance on its 15% global minimum tax agreed as the second ‘pillar’ of a project to address the tax challenges arising from digitalization of the economy. This guidance elaborates on the application and operation of the Global Anti-Base Erosion (GloBE) Rules agreed and released in December 2021 which lay out a coordinated system to ensure that multinational enterprises with revenues above €750 million pay tax of at least 15% on the income arising in each of the jurisdictions in which they operate.

The IASB decided to respond to stakeholders’ concerns about the potential implications of the imminent implementation of these rules on the accounting for income taxes by jurisdictions. In particular, the IASB noted that the situation is very complicated as:

  • jurisdictions may change statutory tax rates to avoid being considered a low-tax environment;
  • companies might decide to move their business to jurisdictions with higher statutory tax rates; and
  • companies might engage in business that comes with tax incentives that might bring down their statutory tax rate to below 15% although the jurisdiction they are doing business in is not generally considered a low-tax environment.

All of these and further considerations would entail most complicated calculations of deferred tax in a situation that is highly volatile due to the fact that jurisdictions implement the OECD rules at different speed and different points of time. Due to the many unknown variables involved, the IASB has decided to develop a mandatory exemption until the global tax system has settled and reestablished itself and the IASB can thoroughly assess the situation and provide a reliable solution.


The amendments in International Tax Reform — Pillar Two Model Rules (Amendments to IAS 12) are:

  • An exception to the requirements in IAS 12 that an entity does not recognize and does not disclose information about deferred tax assets and liabilities related to the OECD pillar two income taxes. An entity has to disclose that it has applied the exception.
  • A disclosure requirement that an entity has to disclose separately its current tax expense (income) related to pillar two income taxes.
  • A disclosure requirement that states that in periods in which pillar two legislation is enacted or substantively enacted, but not yet in effect, an entity discloses known or reasonably estimable information that helps users of financial statements understand the entity’s exposure to pillar two income taxes arising from that legislation.
  • The requirement that an entity applies the exception and the requirement to disclose that it has applied the exception immediately upon issuance of the amendments and retrospectively in accordance with IAS 8. The remaining disclosure requirements are required for annual reporting periods beginning on or after January 1, 2023.

The IASB will continue to monitor developments related to the implementation of the pillar two model rules. It plans to undertake further work to determine whether to remove the temporary exception — or to make it permanent — after there is sufficient clarity about how jurisdictions implemented the rules and the related effects on entities.

Review the press release on the IASB website.

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Canada: Accessibility Compliance Milestone Coming June 1

May 22, 2023

Per an article in the Society for Human Resource Management (SHRM), many federally regulated businesses in Canada with at least 100 employees must publish an accessibility plan by June 1, 2023 detailing how they will remove barriers for employees and members of the public with disabilities. The date marks the first compliance milestone for the Accessible Canada Act (ACA), which seeks to make the country barrier-free by January 1, 2040.

The Canadian government is pursuing this goal so that individuals with disabilities can feel more comfortable using public services and working for federally regulated organizations. The Accessible Canada Act and the Accessible Canada Regulations strive to achieve this by identifying, removing and preventing barriers in employment, buildings and other public spaces Non-compliance can lead to steep penalties for employers.

The Act, which took effect in 2019, defines a barrier as anything that "hinders the full and equal participation in society of persons with an impairment”.

Re­view news release on SHRM's website.

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FRC publishes minimum standard for FTSE350 audit committees

May 22, 2023

On May 22, 2023, the UK’s Financial Reporting Council (FRC) issued a publication, “The Audit Committees and the External Audit: Minimum Standard”, which comes after careful consideration of the consultation responses received from stakeholders. The consultation on the draft proposal for the Minimum Standard was launched by the FRC as a direct response to the Government's consultation on Restoring Trust in Audit and Corporate Governance, which expressed the intention to grant statutory powers to ARGA (Audit, Reporting and Governance Authority) for mandating minimum standards for audit committees in their role on external audits.

The standard will apply to FTSE350 companies Its primary objective is to enhance performance and ensure a consistent approach across audit committees within the FTSE350. By setting out clear expectations and guidelines, the FRC aims to support the delivery of high-quality audits and reinforce public trust in the financial reporting process..

Re­view the news release and the standard on the Financial Reporting Council website.

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G7 underlines its commitment to global sustainability disclosures

May 22, 2023

Following the G7 Leaders' Summit 2023 on May 19- 21, 2023, a joint declaration was published by the G7 that stresses the need for globally interoperable sustainability disclosure frameworks.

The declaration mentions the work and progress of the International Sustainability Standards Board (ISSB) and highlights the need of sustainability disclosures for mobilizing private sector finance to support the transition to a sustainable economy.

It notes: “We (the G7)  underline our commitment to consistent, comparable and reliable disclosure of information on sustainability including climate. We support the International Sustainability Standards Board (ISSB) finalizing the standards for general reporting on sustainability and for climate-related disclosures and working toward achieving globally interoperable sustainability disclosure frameworks. We also look forward to the ISSB’s future work on disclosure on biodiversity and human capital, in line with its work plan consultation.

Re­view the full statement on Ministry of Foreign Affairs of Japan website.

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ISSB issues podcast on latest Board developments (May 2023)

May 19, 2023

On May 19, 2023, the IFRS Foundation has released a podcast discussing highlights from the May 2023 ISSB meeting. The podcast is hosted by ISSB Chair Emmanuel Faber and Vice-Chair Sue Lloyd.

Highlights of the podcast include discussions on:

  • Ratification of consequential amendments to the SASB Standards;
  • Consultation on the ISSB’s agenda priorities and international applicability of the SASB Standards;
  • Stakeholder engagements;
  • Upcoming publication of S1 and S2 in June 2023.

Access the podcast on the IFRS website.

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