However, this decision will be reviewed throughout the comment period and reconsidered based on stakeholder feedback. As a result, stakeholders are encouraged to reply to the AcSB prior to February 28, 2022, to support their ongoing discussions.

The AcSB would like input from Canadian respondents on the following additional question regarding the proposed amendment:

• The IASB has developed the proposed amendment in accordance with its due process for application around the world. Assuming the Exposure Draft proposals are finalized and approved by the IASB in accordance with its due process, do you think that the proposals are appropriate for application in Canada? If not, please specify which aspects of the proposals, and what circumstances, make the accounting requirements proposed in the Exposure Draft inappropriate.

Review the press release and exposure draft on the AcSB's website.

The AcSB would like input from Canadian respondents on the following additional questions regarding the proposed amendment:

1. The IASB has developed the proposed standard in accordance with its due process for application around the world. Assuming the Exposure Draft proposals are finalized and approved by the IASB in accordance with its due process, do you think that the proposals are appropriate for application in Canada? If not, please specify which aspects of the proposals, and what circumstances, make the accounting requirements proposed in the Exposure Draft inappropriate.
2. Assuming the Exposure Draft proposals are finalized, a new standard is issued by the IASB, and endorsed by the AcSB and incorporated into Part I of the Handbook, would you apply it if the entity met the eligibility requirements?
3. Do you agree with the IASB’s proposed eligibility requirements? If not, do you think the scope of the standard should be widened to include entities other than subsidiaries that are small or medium-sized entities? If so, please specify which types of entities.

Review the press release and exposure draft on the AcSB's website.

The AcSB would like input from Canadian respondents on the following additional question regarding the proposed amendment:

• The IASB has developed the proposed amendment in accordance with its due process for application around the world. Assuming the Exposure Draft proposals are finalized and approved by the IASB in accordance with its due process, do you think that the proposals are appropriate for application in Canada? If not, please specify which aspects of the proposals, and what circumstances, make the accounting requirements proposed in the Exposure Draft inappropriate.

Review the press release and exposure draft on the AcSB's website.

Specifically, the AcSB commented on aspects of the proposals, including the users of management commentary, materiality, and the statement of compliance.

Review the letter on the IASB's website.

The 2022 U.S. GAAP taxonomy reflects updates as a result of accounting standards and other improvements. The 2022 SEC taxonomy “contains improvements for removing references for superseded guidance, adding references to improve selection of the appropriate element for the disclosure requirement, and adding new abstract elements.” The 2022 XBRL DQC taxonomy includes 10 new DQCRs.

The taxonomies are subject to final SEC approval, which is expected to be granted in early 2022. For more information, see the press release on the FASB’s Web site.

Specifically, Mr. Barckow discussed:

• Sustainability-related financial disclosures — He noted that sustainability has become a mainstream topic amongst board of directors and within financial reporting. He cited the creation of the International Sustainability Standards Board (ISSB) which was developed to create a global baseline of investor-focused, sustainability-related disclosure standards. In addition, he stated that the ISSB and the IASB will work independently of each other, but the 'connectivity between accounting requirements and sustainability disclosure requirements is essential'.
• Current work programme and future direction — He highlighted three key projects the IASB is working on: (1) primary financial statements, (2) post-implementation reviews for the IASB’s consolidation Standards (IFRS 10, 11, and 12) and financial instruments Standard (IFRS 9), and (3) goodwill and impairment.
• Agenda consultation and future work programme — He mentioned that the staff is in review of the feedback received from the IASB’s latest agenda consultation. Some themes that have emerged from the feedback so far are ‘be mindful how much change you impose on stakeholders; reserve time for working with the new ISSB as well as on emerging issues; and do something on intangibles’. New projects suggested by stakeholders include climate related risk, cryptocurrencies and related transactions, going concern, intangible assets and the statement of cash flows. Some of these projects may be handled by the ISSB, while others may be worked on jointly.
• Convergence — He noted that having converged Standards and keeping Standards converged with the FASB are two different challenges; however, it is important to continue to keep the two Boards (IASB and FASB) informed on important issues and work together to the benefit of stakeholders.

Review the full transcript on the IASB’s website.

Background

Many insurance companies have not yet applied IFRS 9, Financial Instruments and will first apply it at the same time they apply IFRS 17, Insurance Contracts. However, the two standards have different requirements for the comparative information that will be presented on initial application. IFRS 17 requires companies to present one restated comparative period. IFRS 9 permits but does not require restatement of comparative periods, and prohibits companies from applying IFRS 9 to financial assets derecognized in the comparative period.

Some insurers have since raised concerns about the usefulness of the information that would be presented for financial assets in the comparative period on initial application of IFRS 17. They are of the view that such information would be misleading because it would include accounting mismatches that would essentially arise from the continued application of IAS 39 (i.e. would not represent economic mismatches), which would be very difficult to explain. These insurers asked the Board to allow them to present significantly improved information about financial instruments that would result from applying the classification requirements of IFRS 9 at the transition date of IFRS 17.

In July 2021, the IASB published proposed amendments to IFRS 17 to address these concerns and the amendments have now been finalized.

Key amendment

The main amendment in Initial Application of IFRS 17 and IFRS 9 — Comparative Information (Amendment to IFRS 17) is a narrow-scope amendment to the transition requirements of IFRS 17 for entities that first apply IFRS 17 and IFRS 9 at the same time. The amendment regards financial assets for which comparative information is presented on initial application of IFRS 17 and IFRS 9, but where this information has not been restated for IFRS 9. Under the amendment, an entity is permitted to present comparative information about a financial asset as if the classification and measurement requirements of IFRS 9 had been applied to that financial asset before. The option is available on an instrument-by-instrument basis. In applying the classification overlay to a financial asset, an entity is not required to apply the impairment requirements of IFRS 9.

There are no changes to the transition requirements in IFRS 9.

Effective date

An entity that elects to apply the amendment applies it when it first applies IFRS 17.

Additional information

• IASB press release

This issue features:

• In profile — Anthony Scilipoti, President & CEO, Veritas Investment Research Corporation and member of the Capital Markets Advisory Committee
• Spotlight — 2021 Greatest Hits: An update on IASB consultations
• We need your views
• Stay up to date
• Resources for investors

Review the Investor Update newslet­ter on the IASB’s website.

The proposed changes aim to reflect developments in the technology that underlies or relates to the IFRS Taxonomy. They also consider variation in standards and practices and will support the usage of the IFRS Taxonomy or comparable taxonomies in different regulatory environments.

Review the press release and proposed update on the IASB's website.

Mr. Faber, who is the former Chair of the Board and CEO of Danone, will assume his role on 1 January 2022. He has been appointed for a three-year term. Mr. Faber has significant global leadership experience and has long advocated the importance of sustainability information to the global capital markets and its relevance to the investment decision-making process.

The ISSB will develop the IFRS Sustainability Disclosure Standards that provide a global baseline of disclosure requirements designed to give investors high quality, globally comparable sustainability information. The ISSB will work in close cooperation with the International Accounting Standards Board (IASB) to ensure connectivity and compatibility between IFRS Accounting Standards and IFRS Sustainability Disclosure Standards.

Review the press release on the IFRS Foundation's website.

The Monitoring Board of the IFRS Foundation has issued a statement welcoming the appointment.