Below is an analysis of all changes made to the work plan since the last update in January 2017.

Stan­dard-set­ting and related projects

• Insurance contracts — the expected issuance of the IFRS is now marked as being expected within the next three months (May).

Nar­row-scope amend­ments

• Im­prove­ments to IFRS 8 resulting from the post-im­ple­men­ta­tion review of IFRS 8 — the expected pub­li­ca­tion of an exposure draft is now expected in March. Previously, it was expected in April.

IFRS Taxonomy

• Taxonomy update on insurance contracts — The expected issuance is now marked as being expected within the next three months (May).
• Common practice (agriculture, leisure, franchises, retail and financial institutions) — This project has completed its public consultation phase and is now in the drafting phase.

The revised IASB work plan is available on the IASB's website.

Meeting ac­tiv­i­ties included the following:

• Executive session — The Trustees discussed a number of important strategic issues:
  • Strategic workplan 2017 — The Trustees discussed the four primary strategic goals of the workplan.
  • Maintenance of IFRS — The Trustees received a presentation on the approach to the interpretations process.
  • Foundation’s location — The Trustees agreed that the Foundation should stay in London in the medium-term, but will reassess its location over time.
  • Presentation on the work of the International Integrated Reporting Council (IIRC) — The Trustees noted that the IIRC will like to establish a closer relationship with the IASB.
  • Other issues — The Trustees discussed its self-assessment and were updated on the Asia Oceania office’s work on long-term investment and the effect of accounting information on investment decision-making. The Trustees also discussed the timetable for the 2016 Audited Financial statements.
  • Committee reports — The Trustees discussed reports from the Audit and Finance Committee, the Education and Content Services Committee, the Human Capital Committee, and the Nom­i­nat­ing Committee.
• IASB Chairman’s report — The Chair of the IASB provided the Trustees with an update on a number of the IASB’s technical ac­tiv­i­ties, agenda con­sul­ta­tion, engagement strategy, and implementation activities.
• Meeting with the Monitoring Board — The Trustees discussed the Foundation’s strategy, due process, and governance.
• Events in Paris — The Association Francaise des Enterprises Privees hosted a stake­holder event with the Trustees, which included the final Tommaso Padoa-Schioppa lecture.

The full report on the IFRS Foun­da­tion trustees’ meeting is available on the IASB’s website.

The CSA’s 2016 Enforcement Report highlights the enforcement actions taken by CSA members against those who breach Canada’s securities laws.

Some highlights from the 2016 Enforcement Report:

• 39 years of jail time ordered for those committing securities-related misconduct.
• $299 million in compensation that respondents undertook to return to investors through no-contest settlements and $51 million in restitution and disgorgement orders.
• 120 people and 82 companies placed under interim and asset freeze orders, preventing further harm to investors.

Review the press release and report on the CSA's website.

The study was conducted from November 2015 to June 2016 among all of the (then) 34 OECD countries. Of those 34 countries, 25 countries (73%) base their annual financial reports on accrual accounting, and another three countries (9%) are currently transitioning to accrual accounting. Only six countries still use cash accounting.

The study also points out that while the direct adoption of international accounting standards, such as International Public Sector Accounting Standards (IPSAS) or International Financial Reporting Standards (IFRS), by national governments remains very low, almost 40% of the standard-setters use IPSAS (28%) or IFRS (9%) as primary or explicit references for developing their national standards.

The study 130 page study offers a short executive summary, a 15 page analysis of practices across all countries, and afterwards a detailed analysis of each country's accounting practice.

Review the study Accrual Practices and Reform Experiences in OECD Countries on the IFAC's website.

After years of outreach and deliberations, the Insurance Contracts standard is expected to be issued by the IASB this year. As a result, the AcSB will complete its due process prior to the standard becoming Canadian GAAP.

While some might assume the process is simple because our policy is to incorporate IFRSs as issued by the IASB into the CPA Canada Handbook –  Accounting, there are many steps that are taken to ensure that the standard meets the needs of our stakeholders. In fact, we spend over 40 per cent of our time influencing and adopting IFRSs.

Review the article on the AcSB's website.

Effective March 1, 2017, the Bank of Canada will reduce the number of foreign currency exchange rates published and no longer publish noon and closing rates. Instead, a single indicative rate per currency pair will be published each day.

The IFRS Discussion Group discussed the implications this change may have when applying the requirements in IAS 21, The Effects of Changes in Foreign Exchange Rates.

Review the article on the AcSB's website.

Budget 2017 also projects the elimination of the province’s operating debt in 2020/2021. Minister de Jong reiterated his government’s commitment to “improving affordability and increasing competitiveness” in the province through the introduction of a number of taxation measures aimed at providing financial relief for British Columbians and investment in key program areas, as outlined in Budget 2017.

The announced changes to taxation in British Columbia are outlined in our Canadian tax alert.

For further details, we refer you to the Ministry of Finance website.

The position had become vacant with the death of Wayne Upton in September 2016.

Review the press release announcing Ms. Lloyd's appointment on the IASB's website.

The annual global survey from consultancy Black Sun released during a recent joint conference of the International Corporate Governance Network and the International Integrated Reporting Council indicate that ‘there is strong indication from executives that attitudes concerning business and stakeholder value creation need to change and that organizations must deliver a purpose beyond profit”. It also states that “shareholder returns will, as expected, remain crucial for business, but other factors, such as meeting customer expectations and inspiring and engaging people, will significantly grow in importance. Working for the longer-term is cited as preferable over the short-term, and doing this is thought to bring significant internal and external benefits”.

It is a world moving away from narrow measures. Mervyn King made it clear in opening session that the traditional financial measures were not up to scratch. For him the importance was that the corporate world should move from “the plague of short-term profits to value-creation in a long-term manner”. And, for most people at the conference, this meant properly run companies using the wider models of integrated reporting.

A polling on which corporate governance issue was the most important one to concentrate upon demonstrated that there was a disconnect between what was actually happening and what it was felt ought to happen. Recent government pronouncements have focused on pay and incentives and the composition of corporate boards, yet these issues attracted just 9% and 5% of the vote. The overwhelming favourite, coming in at 68%, was for getting boards to focus on long-term value and the significance of stakeholder interests.

Read the entire column on our Global IAS Plus site.

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

The IASB has developed the proposed amendments 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 proposed amendments are appropriate for application in Canada? If not, please specify which aspects of the proposed amendments, and what circumstances, make the accounting requirements proposed in the Exposure Draft inappropriate.

Review the Exposure Draft on the AcSB's website.