Revised Conceptual Framework – PSAB

Date recorded:

At its meeting on June 28-29, 2022, the PSAB approved the Conceptual Framework for Financial Reporting in the Public Sector. This is a significant milestone for PSAB and the Canadian public sector. The Board thanked its stakeholders for their input in creating a Canadian-specific set of concepts and its Concepts Underlying Financial Performance Task Force for its dedication and hard work in creating the high-quality framework. The Conceptual Framework will be effective for fiscal years beginning on or after April 1, 2026. Earlier adoption is encouraged. Major concepts included in the 2021 Exposure Draft have been retained. Changes made were to add clarity or improve/refine concepts based on stakeholder feedback. Some of the notable amendments include: (i) adding the possible interrelationships among public sector entities to fulfill the obligation to serve the public as part of the characteristics of public sector entities, in Chapter 2; (ii) recognizing the United Nations Declaration of the Rights of Indigenous Peoples in Chapter 3; (iii) ensuring consistency  between the control paragraphs in Chapter 5 and those in Section PS 1300, Government Reporting Entity;  (iv) removing references to “legislative accounting” in Chapter 10; and (v) delaying the Conceptual Framework’s effective date for users to match the date of  the financial statement presentation standard. The revised Conceptual Framework and the related consequential amendments will be issued in the CPA Canada Public Sector Accounting (PSA) Handbook in December 2022. The Basis for Conclusions, explaining PSAB’s reasoning on key project issues, will be published on the project page in December 2022 then in the PSA Handbook in February 2023. A comprehensive package of plain-language documents and non-authoritative guidance will be issued to help stakeholders implement the Conceptual Framework.

Review the Executive Summary on the PSAB's Web site.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.