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Accounting for Related Party Financial Instruments and Significant Risk Disclosures (Proposed Amendments to Section 3856, Financial Instruments) [ED]

Comment period ended on January 29, 2018

Next steps:

The AcSB plans to issue the final amendments no later than the fourth quarter of 2018.

Proposed effective date:

The proposed effective date of the amendments would be for fiscal years beginning on or after January 1, 2020, with earlier application permitted.

Last updated:

July 2018

Reach out to our Section 3856 Specialist

Kerry Danyluk


Based on feedback received from respondents to its Post-implementation Review of Section 3856, Financial Instruments, the Accounting Standards Board (AcSB) understands that the guidance pertaining to the following areas are not clear and the lack of clarity leads to diversity in practice:

  • the scope of accounting for related party financial instruments after initial recognition; and
  • the measurement of related party compound financial instruments.

The AcSB also understands that disclosures about risks related to financial instruments are not entity-specific and therefore not useful. Issues to be considered during this project include:

  • clarifying the scope of related party financial instruments;
  • clarifying the measurement of related party compound financial instruments; and
  • amending the financial instrument risk disclosure requirements.


Other developments

October 2017

On October 31, 2017, the AcSB issued an Exposure Draft proposing amendments to Section 3856, related to the accounting for financial instruments between related parties and significant risk disclosures. Stakeholders are encouraged to submit their comments by January 29, 2018.

February 2017

On February 28, 2017, the staff of the AcSB updated this project to indicate that the AcSB expects to issue an Exposure Draft for comment in Q4/2017.


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