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Adoption of IFRSs by Investment Entities (Amendment to the Introduction to Part I) [Completed]

Effective date: Annual periods beginning on or after January 1, 2014.

Transitional provisions:

Deferral of the mandatory adoption of IFRSs by investment companies and segregated accounts of life insurance enterprises extended to January 1, 2014.

Last updated:

January 2013

Overview

This optional deferral of the mandatory adoption date of IFRS to annual periods beginning on or after January 1, 2012 was originally approved by the AcSB as the IASB tentatively had agreed to exempt an entity which qualifies as an investment company from the requirement to consolidate investments in entities it controls. Subsequent deferrals were approved to provide time for the IASB to finalize its guidance on investment entities.

Of note, parents of investment companies will not qualify for the deferral option unless they are themselves, investment companies.

The AcSB requires that an entity choosing to defer its IFRS changeover date disclose that fact, and when it will first present financial statements in accordance with IFRSs.

Recent activities

December 2012

At its meeting on December 12, 2012, the AcSB considered a request to extend the deferral of the mandatory date for first-time adoption of Part I of the CPA Canada Handbook - Accounting (IFRSs) by one year for pension funds. The AcSB decided not to do so because it saw no persuasive evidence that those entities should be treated any differently than other investment companies required to adopt IFRSs for years beginning on or after January 1, 2014.

December 2011

At its meeting on December 12, 2011, the AcSB decided to extend by one year (i.e. to annual periods beginning on or after January 1, 2014) the deferral of the mandatory IFRS changeover date for these entities to provide time for the IASB to finalize the guidance on investment entities.

January 2011

In January 2011, the AcSB approved a one year extension to the optional one year deferral from IFRSs adoption for investment companies applying Accounting Guideline AcG-18, Investment Companies or the stand alone financial statements for segregated accounts of life insurance enterprises, applying Life Section 4211, Insurance Enterprises - Specific Items, in Part V of the CPA Canada Handbook - Accounting.

September 2010

In September 2010, the one year deferral was approved and should be limited to those entities expected to qualify for the IASB’s investment company proposal.


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