This AcSB Exposure Draft reflects proposals made by the International Accounting Standards Board (IASB) that the AcSB intends to adopt, subject to deliberating comments received, as Canadian generally accepted accounting principles.

The IASB’s Exposure Draft proposes to address the diversity in practice and respond to investor feedback by:

• clarifying the underlying classification principles of IAS 32 to help companies distinguish between financial liabilities and equity;
• requiring companies to disclose information to further explain the complexities of instruments that have both debt and equity features; and
• introducing new presentation requirements for amounts—including profit and total comprehensive income—attributable to ordinary shareholders separately from amounts attributable to other holders of equity instruments.

AcSB urges stakeholders in Canada to provide feedback to the IASB regarding its Exposure Draft. The IASB has outlined specific questions for input in its Invitation to Comment within the Exposure Draft. The AcSB advises that comment letters should be sent directly to the IASB, with a copy also sent to the AcSB. Comments to the IASB are due by March 29, 2024.

Access the press release on FRAS Canada’s website.

The podcast highlights some of the projects that were discussed during the meeting, including:

• updates to the work plan;
• post-implementation review of IFRS 15; 
• rate-regulated activities;
• second comprehensive review of the IFRS for SMEsAccounting Standard.

The podcast can be accessed here on the IFRS Foundation website.

The new standard responds to investors' demand for better information about companies’ financial performance and will improve how company information is communicated in the financial statements. It will provide investors with enhanced clarity and depth for analyzing company performance, leading to well-informed investment decisions.

Access the webcast on the IFRS Foundation website.

The new standard responds to investors' demand for better information about companies’ financial performance and will improve how company information is communicated in the financial statements. It will provide investors with enhanced clarity and depth for analyzing company performance, leading to well-informed investment decisions.

Access the webcast on the IFRS Foundation website.

Materiality judgment demands that companies assess whether information could reasonably influence investor decisions.

In 2017 and 2018, the IASB's refined the definition of materiality and furnish guidance along with case studies to facilitate informed judgments. In 2022, the IFRS Foundation issued a call for research as it was seeking to partner with national standard-setters to gather research and information related to the changes and additions to the IASB’s literature on making materiality judgments.

The findings of the research underscored a robust understanding of materiality's concept. While utilization of the 2017 and 2018 guidance exhibited disparities across regions, where implemented, it proved beneficial. Moreover, the research advocates for sustained efforts to raise awareness among stakeholders regarding the available guidance. Looking ahead, the IASB remains committed to providing further assistance to companies navigating materiality judgments, with insights from its research poised to influence ongoing discussions, including those within projects such as the initiative regarding climate-related and other uncertainties in the financial statements.

The national standard-setters taking part in the research initiative, working in partnership with academics from their jurisdictions, are from Australia, Botswana, China, Malaysia, Mexico and New Zealand.

Access the research summary on IFRS Foundation’s website.

Below is an analysis of all changes made to the work plan since our last analysis on March 23, 2024

Standard-setting projects

• Equity Method — An exposure draft is expected in Q3 2024 (previously H2 2024)
• Management Commentary — A decision on the project direction is now expected in June 2024 (previously Q2 2024)
• Primary Financial Statements — This project has been removed from the work plan since the issuance of IFRS 18 Presentation and Disclosures in Financial Statements on April 9

Maintenance projects

• Annual improvements to IFRS Accounting Standards — The following now have the final amendment to be issued in July 2024 (previously Q3 2024):
• Cost Method (Amendments to IAS 7) 
• Derecognition of Lease Liabilities (Amendments to IFRS 9) 
• Determination of a ‘De Facto Agent’ (Amendments to IFRS 10) 
• Disclosure of Deferred Difference between Fair Value and Transaction Price (Amendments to Guidance on implementing IFRS 7) 
• Gain or Loss on Derecognition (Amendments to IFRS 7) 
• Hedge Accounting by a First-time Adopter (Amendments to IFRS 1) 
• Introduction and Credit Risk Disclosures (Amendments to Guidance on implementing IFRS 7) 
• Transaction Price (Amendments to IFRS 9)
• Climate-related and Other Uncertainties in the Financial Statements — The next project step will now be an exposure draft expected to be published in Q3 2024.

Governance projects

• ISSB Consultation on Agenda Priorities — A feedback statement is now expected in June 2024 (previously Q2 2024)

Research projects

• Business Combinations under Common Control — This project has been removed from the work plan since the IASB completed it by publishing a project summary on April 17, 2024
• Intangible Assets — This project has been added to the work plan and a review of the research is expected in H2 2024
• Post-implementation Review of IFRS 15 — Revenue from Contracts with Customers — A feedback statement is now expected in Q3 2024 (previously H2 2024).

Other projects

• IFRS Accounting Taxonomy Update: The following projects were removed from work plan since the release of the update on March 27:
• Amendments to IAS 12, IAS 21, IAS 7 and IFRS 7
• Common Practice (Financial Instruments) and General Improvements
• IFRS Accounting Taxonomy Update — Primary Financial Statements — A proposed IFRS Taxonomy Update is expected in May 2024 (previously Q2 2024)
• IFRS Accounting Taxonomy Update — Subsidiaries without Public Accountability: Disclosure and Amendments to IFRS 7 and IFRS 9 — A proposed IFRS Taxonomy Update is expected in Q3 2024 (previously H2 2024)
• IFRS Sustainability Disclosure Taxonomy — This project has been removed from the work plan since the ISSB published the disclosure taxonomy in April 2024.

The above is a faithful comparison of the IASB and ISSB work plan on March 26, 2024 and April 29, 2024

For access to the current work plan at any time, please click here.