TORONTO, April 30 /CNW/ - The Accounting Standards Board (AcSB)
confirmed, following a special meeting, that the recent US guidance on
determining the fair value of financial instruments is consistent with
Canadian standards. The guidance deals with determining whether a market is
inactive and whether a transaction is a distressed sale.
Also, the AcSB decided to revise its standards on impairment of debt
instruments to converge with international standards. These decisions are
consistent with the AcSB's strategy of adopting IFRSs for publicly accountable
enterprises in 2011.
For financial assets classified as "held-to-maturity" or "loans and
receivables" (which could include debt instruments not quoted in an active
market), impairment would be based on the credit loss that has been incurred
as at the balance sheet date. These proposed revisions will be exposed for
public comment. The changes will also narrow the differences with new US
The AcSB strongly supports the work of the International Accounting
Standards Board (IASB) and the US Financial Accounting Standards Board (FASB)
to develop a new international standard on measurement and recognition of
The AcSB meeting was added to its meeting schedule to ensure that it
acted in a timely manner and had all required information to make appropriate
and responsible choices for Canada.
In the lead up to the changeover to IFRSs, one of the AcSB's guiding
principles is to avoid changes that conflict with IFRSs and that are not
aligned with emerging global accounting standards. The AcSB is committed to
working with the IASB and the FASB to develop new, high-quality standards.
"We endorse a level playing field and believe that a robust global
accounting standard on financial instruments is the best way to achieve it.
The proposed changes in the accounting for impairment respond to concerns that
Canadian companies should not be disadvantaged as we make the transition to
IFRSs," said Paul Cherry, Chair of the AcSB. "Canadian standards historically
have been of a high quality, and maintaining transparency and trust in
financial statements is vital."
The Accounting Standards Board establishes financial accounting and
reporting standards for use by Canadian companies and not-for-profit
organizations. It participates in the development of internationally accepted
accounting standards. The Board sets its financial accounting and reporting
standards after an extensive process of consultation with organizations and
individuals that are interested in or affected by the standards. The standards
contribute to enhanced decision making by continually improving the quality of
financial and other information about organizational performance reported by
Canadian entities. www.ascbcanada.org
For further information:
For further information: or to arrange an interview, contact Lisa
Pretty, Communications Manager, Standards, (416) 204-3482,