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Public sector

Exposure Draft – 2019-2020 Annual Improvements to Public Sector Accounting Standards

Jan 09, 2020

On January 9, 2020, the Public Sector Accounting Board (PSAB) issued its 2019-2020 Annual Improvements Exposure Draft as part of an ongoing process to enhance and improve the PSA Handbook for its stakeholders. Comments are requested by March 10, 2020.

The 2019-2020 Annual Improvements reflect proposed amendments to:

  • clarify transitional provisions for consequential amendments;
  • update disclosure requirements in individual standards relating to contractual rights; and
  • replace the term “contingency” with “contingent assets and contingent liabilities”.

Review the press release and exposure draft on the PSAB's website.

Exposure Draft, Financial Instruments – Narrow Scope Amendment (Federal Government)

Jan 03, 2020

On January 3, 2020, the Public Sector Accounting Board (PSAB) released an Exposure Draft that proposes a specific amendment to permit the Federal government of Canada to present its foreign currency exchange gains and losses immediately in the surplus and deficit. Comments are requested by March 4, 2020.

The PSAB proposes to amend the following sections:

  • FINANCIAL STATEMENT PRESENTATION, Section PS 1201
  • FOREIGN CURRENCY TRANSLATION, Section PS 2601
  • FINANCIAL INSTRUMENTS, Section PS 3450

The Basis for Conclusions, which accompanies this Exposure Draft, addresses alternative views and the Board position, with its reasons.

Narrow-scope amendments are being proposed to permit special presentation of foreign exchange gains and losses resulting from transactions intended to sustain foreign exchange reserves and orderly conditions in the foreign exchange market for the Canadian dollar or to aid foreign countries.

Review the Exposure Draft on the PSAB's website.

Exposure Draft, Narrow Scope Amendment – Purchased Intangibles

Nov 29, 2019

On November 29, 2019, the Public Sector Accounting Board (PSAB) released an exposure draft that proposes to remove the prohibition against recognizing intangibles purchased in an exchange transaction in public sector financial statements. The change is proposed to respond to input from Indigenous governments and other PSAB stakeholders.

The Exposure Draft proposes to remove the exclusion in the conceptual framework prohibiting recognition of purchased intangibles in financial statements. The proposal is limited to intangibles purchased through an exchange transaction. Removing the recognition prohibition on purchased intangibles would address a material imbalance in the statements of financial position of many Indigenous governments. These governments may finance the purchase of commercial fishing (and other) licenses with debt but cannot currently recognize the licenses as assets. The proposal may also have implications for other public sector entities that purchase intangibles.

Like the current situation for purchased Crown lands and purchased natural resources, no guidance on how to account for purchased intangibles is proposed in this Exposure Draft. For now, reference to the asset definition, the general recognition criteria and the GAAP hierarchy is expected. Accounting for these items may be the subject of future PSAB projects.

Read the press release and Exposure Draft on the AcSB's website.

Update – Revisiting PSAB’s Employment Benefits Project

Nov 28, 2019

On November 28, 2019, the Public Sector Accounting Board (PSAB) decided to revisit their Employment Benefits project by reviewing the project plan and scope.

Review the article to find out why on the PSAB's website.

Exposure Draft, Public Private Partnerships

Nov 01, 2019

On November 1, 2019, the Public Sector Accounting Board (PSAB) released an Exposure Draft that proposes specific scope, recognition, measurement, presentation, and disclosure requirements for public private partnerships. Comments are requested by February 29, 2020.

This proposed guidance will have a significant impact in the public sector.

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

In Brief – Public Private Partnerships Exposure Draft

Nov 01, 2019

On November 1, 2019, the Public Sector Accounting Board (PSAB) released a plain and simple overview of PSAB’s proposed accounting treatment for public private partnerships.

Learn how the specific scope, recognition, measurement, presentation, and disclosure requirements could have a significant impact in the public sector.

Review the In Brief on the PSAB's website.

Basis for Conclusion – 2018-2019 Annual Improvements to Public Sector Accounting Standards

Aug 30, 2019

On August 30, 2019, the Public Sector Accounting Board (PSAB) released the Basis for Conclusion, which sets out how the Board reached its conclusions on the 2018-2019 Annual Improvements.

It also includes a discussion of significant matters arising from comments received and issues raised in response to its Exposure Draft.

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

IPSASB Exposure Draft – Public Sector Financial Instruments, Amendments to IPSAS 41, Financial Instruments

Aug 27, 2019

On August 27, 2019, the International Public Sector Accounting Standards Board (IPSASB) published an exposure draft "Public Sector Financial Instruments: Amendments to IPSAS 41, Financial Instruments" with proposed amendments that would supplement the IPSASB’s existing guidance in IPSAS 41 for topics that are unique to the public sector and have a significant impact on government finances. Comments are requested by December 31, 2019.

The exposure draft proposes clarification of existing guidance for four public sector instruments:

  • Monetary gold;
  • Currency in circulation;
  • IMF quota subscriptions; and
  • IMF special drawing rights.

The IPSASB has come to the conclusion that monetary gold has similar characteristics to a financial asset and proposes to clarify that it is appropriate to account for monetary gold by applying the financial asset principles in certain circumstances.

As regards currency in circulation, IMF quota subscriptions and special drawing rights, the IPSASB has come to the conclusion that these all meet the definition of a financial instrument and proposes adding implementation guidance and an illustrative example to support stakeholders accounting for these instruments.

Review the exposure draft Public Sector Financial Instruments: Amendments to IPSAS 41 "Financial Instruments", a short introductory webinar and an At a Glance introduction on the IPSASB's website.

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.

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