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Public sector

PSAB Article: Reviewing our approach to International Public Sector Accounting Standards

Jul 05, 2019

On July 5, 2019, the Pub­lic Sec­tor Ac­count­ing Board (PSAB) posted a summary article that encourages stakeholders to comment on PSAB’s second consultation paper concerning its international strategy, which is out for comment until September 30, 2019

Re­view the article on the PSAB's web­site.

IPSASB issues updated IPSAS-IFRS alignment dashboard

Jul 02, 2019

On July 2, 2019, the In­ter­na­tional Pub­lic Sec­tor Ac­count­ing Stan­dards Board (IP­SASB), which develops the of International Public Sector Accounting Standards (IPSAS) for financial reporting by governments and other public sector entities, has released an updated IPSAS-IFRS alignment dashboard showing how far individual IPSAS are aligned with corresponding IFRSs.

The alignment dashbord was updated for the June 2019 IPSASB meeting. It also offers a table showing for which IFRSs there is no IPSAS equivalent and whether the IPSASB intends to fill that gap.

Please click to access the updated dashboard on the IPSASB website.

PSAB In Brief - A plain and simple overview of Consultation Paper 2, Reviewing PSAB’s Approach to International Public Sector Accounting Standards

Jun 06, 2019

On June 6, 2019, the Pub­lic Sec­tor Ac­count­ing Board (PSAB) published an In Brief with respect to its Consultation Paper 2, Reviewing PSAB’s Approach to International Public Sector Accounting Standards. Read this plain and simple overview to understand the options clarified in PSAB’s second International Strategy consultation paper

Re­view the In Brief on the PSAB's web­site.

Consultation Paper 2, Reviewing PSAB’s Approach to International Public Sector Accounting Standards

May 08, 2019

On May 8, 2019, the Public Sector Accounting Board (PSAB) released its second International Strategy consultation paper. This paper summarizes feedback they heard on their first paper in 2018. The options are clarified to better support stakeholders’ feedback on the important question PSAB will be answering by March 2020 – what is the future of Canada’s public sector accounting international strategy? Comments are requested by September 30, 2019.

The purpose of this second Consultation Paper on International Strategy is to:

  • summarize respondents’ feedback to Consultation Paper 1, notably the decision-making criteria and options outlined therein;
  • clarify the options;
  • describe the updated decision-making criteria that reflects the feedback; and
  • apply the updated criteria to each of the options.

With this second Consultation Paper, PSAB anticipates being in a position to decide on its approach to IPSAS by March 2020 at its regular Board Meeting.

Review the press release and Consultation Paper 2 on the PSAB's website.

Government Not-for-Profit Consultation Paper Released

May 08, 2019

On May 8, 2019, the Public Sector Accounting Board (PSAB) issued its Government Not-for Profit (GNFP) Consultation Paper to inform the readers of the results of the 2017-2018 consultations and seek feedback on matters that would assist them in determining next steps relating to the government not-for-profit strategy. Comments are requested by September 30, 2019.

The purpose of the consultation paper is to:

  • inform GNFP stakeholders of the Canadian and international not-for-profit financial reporting landscape;
  • communicate results of the 2017-2018 GNFP consultations; and
  • request stakeholder input on key issues that will guide PSAB in determining its next steps for the GNFP Strategy.

Review the following information of the PSAB's website:

Reviewing PSAB’s approach to International Public Sector Accounting Standards podcasts:

Reviewing PSAB’s approach to International Public Sector Accounting Standards podcast scripts:

IPSASB takes first step in establishing a comprehensive measurement framework for the public sector

Apr 30, 2019

On April 30, 2019, the International Public Sector Accounting Standards Board (IPSASB) released a consultation paper "Measurement" that addresses how measurement bases are determined in the public sector.

In an effort to better communicate with its constituents, the IPSASB is testing a new consultation approach. Therefore, the consultation document contains two separate sections:

  • A concepts-based discussion in the consultation paper which
    • lays out proposed guidance for measurement bases for the assets and liabilities most commonly used by public sector entities when applying IPSAS;
    • proposes the development of a single standard which will provide definitions and guidance on the main measurement bases, while other IPSAS will continue to provide guidance on which particular measurement basis is to be used;and
    • identifies areas where the IPSASB has reached preliminary views; and
  • An illustrative exposure draft, which illustrates what a draft IPSAS could look like, given the IPSASB’s preliminary views.

Comments on the consultation paper are requested by September 30, 2019.

Review the following information on the IPSASB's website:

 

PSAB Annual Plan 2019-2020

Apr 01, 2019

On April 1, 2019, the Pub­lic Sec­tor Ac­count­ing Board (PSAB) published its Annual Plan for 2019-2020. This Annual Plan sets out the Board’s key activities in 2019-2020, in order to help it achieve the objectives in its current Strategic Plan.

The PSAB is in the final year of its Strategic Plan for 2017-2020, which it currently plans to extend by one year to March 31, 2021.

The Annual Plan covers the detailed plans for its five current strategies:

  • the Board’s current standard setting projects;
  • finalizing the Board’s Conceptual Framework;
  • reviewing the Board’s approach to International Public Sector Accounting Standards;
  • encouraging stakeholders to support and accept the Board’s standards; and
  • implementation of a not-for-profit strategy that meets the public interest.

It also provides details of the Board’s other key initiatives which include (i) jointly with the AASB, monitoring the different audit opinions being used for public sector financial statements; and (ii) monitoring government accounting issues related to rate regulated activities across Canada.

For further details, refer to the Annual Plan on the PSAB’s website.

IPSASB publishes strategy and work plan for 2019-2023

Feb 28, 2019

On February 28, 2019, the International Public Sector Accounting Standards Board (IPSASB) published its strategy and work plan for 2019 through 2023.

The IPSASB’s strategic objective is to strengthen public financial management globally through increasing adoption of accrual-based IPSAS. To achieve this, the IPSASB will develop and maintain IPSAS and other high-quality financial reporting guidance for the public sector and raise awareness of IPSAS and the benefits of accrual adoption. The development of global standards includes setting standards on public sector specific issues, maintaining IFRS alignment, and developing guidance to meet users’ broader financial reporting needs.

Review the press release and strategy and work plan for 2019-2023 on the IPSASB's website.

IPSASB publishes final guidance on accounting for social benefits and exposure draft on collective and individual services and emergency relief

Jan 31, 2019

On January 31, 2019, the International Public Sector Accounting Standards Board (IPSASB) released International Public Sector Accounting Standard (IPSAS) 42 "Social Benefits" and an related Exposure Draft (ED) 67 "Collective and Individual Services and Emergency Relief (Amendments to IPSAS 19)" to address a wide range of significant government expenditures.

IPSAS 42 Social Benefits provides guidance on accounting for social benefits expenditure. It defines social benefits as cash transfers paid to specific individuals and/or households to mitigate the effect of social risk. The standard requires an entity to recognize an expense and a liability for the next social benefit payment. IPSAS 42 establishes principles and requirements for:

  • Recognizing expenses and liabilities for social benefits;
  • Measuring expenses and liabilities for social benefits;
  • Presenting information about social benefits in the financial statements; and
  • Determining what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the social benefits provided by the reporting entity.

In order to extend IPSASB’s guidance to public services as well as cash transfers, ED 67 Collective and Individual Services and Emergency Relief proposes new requirements for accounting for collective services (such as defense at national-levels), individual services (such as healthcare) and emergency relief. For collective and individual services, ED 67 proposes that an expense is recognized at the point of service delivery. ED 67 also proposes that an expense and liability is recognized for some emergency relief, but not where emergency relief is delivered as an ongoing activity of government. The IPSASB notes that the distinction between social benefits and collective and individual services is important, but the accounting treatment of these transactions should be conceptually consistent. Comments on the ED are requested by May 31, 2019.

Review the following additional information on the IPSASB's website:

Exposure Draft, Financial Instruments – Narrow Scope Amendments

Jan 31, 2019

On January 31, 2019, the Public Sector Accounting Board (PSAB) released an Exposure Draft that proposes, subject to comments received following exposure, to amend Section PS 3450, "Financial Instruments". The Basis for Conclusions, which accompanies the Exposure Draft, addresses alternative views and the Board position, with its reasons. Comments are requested by May 1, 2019.

The exposure draft proposes changes to the accounting treatment of a bond repurchase, simplification of how a government consolidates the accounts of organizations already reporting on a fair value, and several minor improvements and clarifications to the standard.

Review the press release and Exposure Draft on the PSAB's website.

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