Public sector

PSAB Future Work Plan Consultation Paper

Aug 25, 2022

On August 25, 2022, the Public Sector Accounting Board (PSAB) issued its Future Work Plan Consultation to gather input on the projects it should take on, to help fulfill the strategies identified in its Strategic Plan 2022-2027. Comments are requested by November 3, 2022.

This Consultation Paper sets out future projects PSAB may consider. They are in addition to those already highlighted in its Strategic Plan for 2022-2027, some of which are underway or starting this year (see PSAB’s 2022-2023 Annual Plan). Both current and planned activities have PSAB resources allocated to them. This Consultation Paper focuses on possible topics for these new projects.

The Board proposes the following project topics:

Major projects

  • Intangibles
  • Impairment of Assets 
  • Amendment to the Introduction to Public Sector Accounting Standards

Minor projects

  • Update to accounting changes, Section PS 2120
  • Inventories
  • Update statement of recommended practice (SORP) 1, Financial Statement Discussion and Analysis (FSD&A)

Review the Consultation Paper onthe PSAB's website.

Basis for Conclusions – Government Not-for-Profit Strategy

May 05, 2022

On May 5, 2022, the Public Sector Accounting Board (PSAB) released its Basis for Conclusions for its Government Not-for-Profit (GNFP) Strategy Decision, which provides an overview of key feedback from stakeholders and how PSAB responded.

Summary of responses

What PSAB asked − Do you agree the proposed option, Option 2 – PSAS incorporating the PS 4200 series with potential customizations, best meets the Canadian public interest?

What you said − Option 2 will help improve comparability of the GNFPO financial statements. However, there was some uncertainty about how the PS 4200 series would be incorporated into PSAS and what customizations might be proposed.

What PSAB decided to do – Proceed with Option 2 as PSAB’s GNFP Strategy after careful consideration of feedback to the Consultation Papers. An implementation plan will be developed, setting out how to go about incorporating the PS 4200 series into PSAS.

Review the Basis for Conclusions on the PSAB's website.

PSAB’s 2022 – 2027 Strategic Plan Feedback Statement

Apr 21, 2022

On April 21, 2022, the Public Sector Accounting Board (PSAB) released its Feedback Statement for the Draft 2022-2027 Strategic Plan Consultation Paper, which provides an overview of key feedback received by stakeholders and how PSAB responded.

Review the following information on PSAB's website:

IPSASB issues Exposure Draft 81, Proposed Update to Conceptual Framework

Feb 22, 2022

The International Public Sector Accounting Standards Board (IPSASB) issued Exposure Draft 81, "Proposed Update to Conceptual Framework". PSAB encourages stakeholders to send comments directly to the IPSASB by May 31, 2022. If you would like PSAB to consider your feedback in its response, comments are requested by May 16, 2022.

ED 81 updates Chapter 3, Qualitative Characteristics, and Chapter 5, Elements of Financial Statements, of the Conceptual Framework, in light of:

  • the IPSASB’s experience in applying the Conceptual Framework to the development and maintenance of International Public Sector Accounting Standards (IPSAS); and
  • developments in international thinking about conceptual issues since the Framework was approved in 2014.

PSAB encourages stakeholders to review the ED and send comments to the IPSASB by May 31, 2022.

Review the press release and exposure draft.

Webinar – PSAB’s International Strategy Update

Dec 06, 2021

In 2020, after extensive consultation with Canadians and careful consideration, the Public Sector Accounting Board (PSAB) decided to continue developing Public Sector Accounting Standards (PSAS), but future standards would be based on International Public Sector Accounting Standards (IPSAS) principles.

This means that if a project is undertaken and an IPSAS already exists, the principles of that IPSAS will be used as a base for developing the corresponding Canadian PSAS.

Watch the webinar to learn about the work PSAB has done related to the implementation of its International Strategy.

IPSASB issues four new Exposure Drafts on how to measure assets and liabilities in the public sector

Aug 06, 2021

The International Public Sector Accounting Standards Board (IPSASB) released four new Exposure Drafts on how to measure assets and liabilities in the public sector. The Public Sector Accounting Board (PSAB) encourages stakeholders to send comments directly to the IPSASB by October 25, 2021.

All four Exposure Drafts are focused on the measurement of assets and liabilities in the public sector and therefore should be read in conjunction with each other. 

  • Exposure Draft 76, Conceptual Framework Update: Chapter 7, Measurement of Assets and Liabilities in Financial Statements. This Exposure Draft streamlines the measurement guidance in the Conceptual Framework by eliminating measurement bases that have not been used in the development of standards, inserting new or revised measurement bases, and focusing on bases that are commonly used.
  • Exposure Draft 77, Measurement. This Exposure Draft proposes new guidance in a single standard, which addresses how commonly used measurement bases are applied in practice. The Exposure Draft brings in generic guidance on fair value for the first time. It also proposes a current value measurement basis that is specific to the public sector. This guidance is in response to stakeholder views that a new measurement basis is required as an alternative to fair value for assets held for their operational capacity.
  • Exposure Draft 78, Property, Plant, and Equipment. This Exposure Draft updates IPSAS 17, Property, Plant, and Equipment by adding general measurement guidance and measurement options when accounting for assets within its scope, identifying the characteristics of heritage and infrastructure assets, and proposing new guidance on how these important types of public sector assets should be recognized and measured.
  • Exposure Draft 79, Non-Current Assets Held for Sale and Discontinued Operations. This Exposure Draft is aligned with IFRS 5, Non-Current Assets Held for Sale and Discontinued Operations. It proposes new guidance on how to account for non-current assets that are classified as held for sale, when they meet specific criteria.

If you would like the PSAB to consider your feedback during the development of their response, please reply to PSAB by October 11, 2021.

Review the press release on the PSAB's website.

IPSASB issues Exposure Draft (ED) 80, Improvements to IPSAS, 2021

Jul 30, 2021

On July 30, 2021, the International Public Sector Accounting Standards Board (IPSASB) released Exposure Draft (ED) 80, "Improvements to IPSAS, 2021". PSAB encourages stakeholders to send comments directly to the IPSASB by September 30, 2021.

Review the press release and exposure draft.

Exposure Draft – Employee Benefits, Proposed Section 3251

Jul 28, 2021

On July 28, 2021, the Public Sector Accounting Board (PSAB) issued Exposure Draft – “Employee Benefits, Proposed Section 3251,” which outlines principles for the first of several phases of the revised employee benefits standard. In this first phase, the Board focused on discount rate guidance and deferral provisions. Comments are requested by November 25, 2021.

The main features of the Exposure Draft are as follows:

  • Accounting guidance for short-term employee benefits, post-employment benefits, other long-term employee benefits and termination benefits have all been considered in this Exposure Draft.
  • Accounting for defined benefit plans results in a public sector entity recognizing the following amounts in surplus or deficit: current service cost, any past service cost and gain or loss on settlement, and net interest on the net defined benefit liability (asset).
  • Revaluations of the net defined benefit liability (asset) are recognized in net assets and are not reclassified to surplus or deficit in subsequent periods.
  • The discount rate used to discount post-employment benefit obligations is determined based on an assessment of the post-employment benefit plan’s funding status.
  • A simplified approach is used to account for other long-term employee benefits as they are not usually subject to the same degree of uncertainty as the measurement of post-employment benefits. This simplified method does not recognize revaluations in net assets.

Review the exposure draft and In Brief on the PSAB's website.

IPSASB issues Mid-Period Work Program Consultation document

Jul 28, 2021

On July 28, 2021, the International Public Sector Accounting Standards Board (IPSASB) released its Mid-Period Work Program Consultation document. PSAB encourages stakeholders to send comments directly to the IPSASB by November 30, 2021. If you would like PSAB to consider your feedback during the development of their response, reply to PSAB by November 16, 2021.

IFAC Releases Latest Point of View: Greater Transparency and Accountability in the Public Sector

Jul 19, 2021

On July 19, 2021, the International Federation of Accountants (IFAC) published a Point of View: “Greater Transparency and Accountability in the Public Sector.”

IFAC notes that the public sector is facing a myriad of competing priorities, including an unprecedented global health crisis and climate emergency, and must make critical decisions that will affect generations to come. In this environment, helping citizens understand how public funds are being managed and spent, as well as the reasoning behind and consequences of decisions made, can meet the heightened need for transparency and accountability necessary to retain and grow stakeholder trust.

IFAC’s Point of View explores the need for strong governance and public financial management (PFM), so that governments and public sector entities around the world can make informed, data-driven decisions for people, the planet, and the economy. It also outlines how the accountancy profession, with its public interest mandate, can support the public sector in achieving long-term financial sustainability and resilience, to help create a better world with stronger economies and fairer societies.

Re­view the full Point of View document on the IFAC's web­site.

 

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.