The Accounting Standards Board says that in an era of globalization and convergence of accounting standards, a national accounting standard setting body is still crucial if the specific needs of Canadians are to be met.

“The program for developing accounting standards over the next two or three years will be a bellwether in determining how successful the AcSB will be in achieving its twin goals of harmonization of standards with those in the U.S. and contributing to the development of a single set of globally accepted accounting standards,” said Thomas Allen, chairman of the Accounting Standards Oversight Council.

“These are initiatives which we fully support, without losing sight of the fact that Canadian corporate leadership, investors, regulators, analysts and the public at large continue to benefit from having a national accounting standards board that can ably communicate our distinctive Canadian aims and objectives on a global stage.”

The October AcSOC meeting allowed AcSB chair Paul Cherry and Accounting Standards director Ron Salole to brief AcSOC members on the results of its recent planning session.

At the meeting, it was reported that AcSB is continuing to work on a series of projects, including: the harmonization of the Canadian standards dealing with impairment of long-lived assets with those in the U.S.; harmonized standards on the purchase method procedures for combinations of co-operative enterprises; converged international standards on purchase method procedures on business combinations; and harmonized standards on the classification of liabilities and equity.

Several topics were added to the AcSB’s technical agenda: financial instruments; present value measurement; reporting financial performance; asset retirement obligations and rate-regulated enterprises.

“We are facing some significant reporting issues and many conflicting demands,” said Allen: “AcSOC has a key role to play in providing the board with a high-level picture of critical international and national accounting priorities.”

Cherry agreed, noting: “There is no shortage of topics that the board needs to address. However, the agenda decisions have to take into account the demands made on our constituents in understanding and implementing new or revised accounting standards, and balance the needs of users and preparers of financial reporting.”

AcSOC next meets in Toronto on January 15, 2002.