PSAB Statement of Principles – Public Private Partnerships

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Jul 20, 2017

On July 20, 2017, the Public Standards Accounting Board (PSAB) issued a Statement of Principles that proposes a new standard on public private partnerships. Stakeholders are encouraged to submit their comments by October 17, 2017.

The main fea­tures of the proposals in the Statement of Principles (SOP) are as fol­lows:

  • Public private partnership infrastructure is procured by the public sector entity using a private sector partner whose obligations include: a requirement to build, acquire, improve or refurbish; finance; and maintain and/or operate the infrastructure.
  • Public private partnership infrastructure is recognized as an asset where the public sector entity controls the infrastructure.
  • A liability is recognized where the public private partnership gives rise to an obligation to the public sector entity to sacrifice future economic benefits.
  • Infrastructure and the associated liability are measured initially at cost.

Re­view the Statement of Principles on the PSAB's website.

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