The Board has clarified the definition of PAE as previously proposed. PAE is defined as... a profit-oriented entity that has issued (or is in the process of issuing) debt or equity securities that are (or will be) outstanding and traded in a public market, or holds assets in a fiduciary capacity for a broad group of outsiders.
For "public market" see CICA Handbook Section 1300 Differential Reporting
The expression “fiduciary capacity,” will be clarified with examples of entities considered to hold assets in such a capacity.
Pension Plans will continue to apply CICA Handbook Section 4100, as previously proposed. Pension Fund financial statements prepared solely for regulatory purposes (or, for example, for inclusion in the consolidated financial statements of its parent) are not general purpose financial statements and, therefore, are unaffected by the AcSB’s IFRS strategy unless a pension fund decides otherwise
Decisions on the applicability of IFRSs to public sector entities fall within the mandate of the Public Sector Accounting Board.
Not for Profit Organizations (NFPOs) do not fall within the definition, even if such an organization happens to meet one or more of the criteria for a profit-oriented enterprise to be considered a PAE. The AcSB will reserve judgment on the applicability of IFRSs to NFPOs pending the completion of its deliberations on the appropriate financial reporting model for this sector.
The results of the recent deliberations will be included in a second Omnibus Exposure Draft to be issued later this year. You may be in an unclear situation and you should read the wording very carefully and confirm your interpretation with your auditors.
Please read the AcSB Decision Summary from its September 23 - 24, 2008 meeting here. The Summary among other matters contains a number of decisions related to private companies as they may be treated in the future. You may be aware that the matter of private company reporting is being deliberated in a separate and distinct manner. There is also reference to the credit crisis in the Decision Summary, but the AcSB meeting was held prior to the interesting legislative dramas this week in the USA!