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2020

Basis for Conclusions – PSAB International Strategy

Sep 15, 2020

On September 15, 2020, the Public Sector Accounting Board (PSAB) released the Basis for Conclusion, which sets out how PSAB reached its decision to pursue "Option 2: Adapt IPSAS principles when developing future standards" as its future International Strategy.

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

Basis for Conclusions, Financial Instruments – Narrow Scope Amendments

Mar 31, 2020

On March 31, 2020, the Public Sector Accounting Board (PSAB) released the Basis for Conclusion, which describes the Board’s amendments to Section PS 3450, Financial instruments.

This includes changes to the accounting treatment of bond repurchase transactions, clarification of transitional provisions, and other minor improvements.

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

COVID-19 accounting tool for governments

Jul 22, 2020

The International Fed­er­a­tion of Ac­coun­tants (IFAC), the Zurich Uni­ver­sity of Applied Science (ZHAW), and the International Public Sector Accounting Standards Board (IPSASB) have published a tool for gov­ern­ments and other in­ter­ested stake­hold­ers to apply best practices in public sector accounting when analyzing COVID-19-re­lated in­ter­ven­tion programs.

The COVID-19 pandemic led gov­ern­ments to deploy sig­nif­i­cant in­ter­ven­tions to support in­di­vid­u­als, busi­nesses, the monetary system, and specific sectors, including health­care. In view of the un­prece­dented scale of these in­ter­ven­tions there is an urgent need to un­der­stand their full current and ongoing impacts on public finances as high-qual­ity financial in­for­ma­tion enhances gov­ern­ment de­ci­sion-mak­ing and supports better outcomes for citizens over the medium and longer-term.

The new COVID-19 In­ter­ven­tion As­sess­ment Tool includes:

  • A step-by-step process and as­sess­ment tool to help assess, evaluate and inform various types of gov­ern­ment in­ter­ven­tions related to the pandemic; and
  • An overview of the way it can support the pathway to accrual International Public Sector Accounting Standards (IPSAS) for gov­ern­ments.

For more in­for­ma­tion refer to the IPSASB website.

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 amendments

Jul 30, 2020

On July 30, 2020, the Public Sector Accounting Board (PSAB) issued two Exposure Drafts on the presentation of derivatives and recognizing exchange gains and losses.

Exposure Draft –  Financial Instruments – Presentation Narrow Scope Amendments

PSAB proposes specific amendments to clarify the presentation of derivatives. The proposal would amend Section PS 1201, Financial Statement Presentation. Comments are requested by October 28, 2020.

Exposure Draft – Financial Instruments – Foreign Exchange Narrow Scope Amendments

PSAB proposes specific amendments to allow all public sector entities to recognize exchange gains and losses directly in the statement of operations. Comments are requested by October 28, 2020.

The proposal would amend the following sections: 

  • Section PS 1201, Financial Statement Presentation
  • Section PS 2601, Foreign Currency Translation
  • Section PS 3450, Financial Instruments

 

Exposure Draft – Proposal to modify the Canadian Public Sector GAAP Hierarchy

Nov 10, 2020

On November 10, 2020, the Public Sector Accounting Board (PSAB) released an exposure draft proposing amendments to PS 1150, "Generally Accepted Accounting Principles", to clarify the GAAP hierarchy on matters not covered by primary sources of GAAP or for assistance in applying primary source of GAAP. Comments are requested by February 15, 2021.

PSAB expects to issue final amendments to Section PS 1150 in the first quarter of 2021. The amendments will be effective for years beginning on or after April 1, 2021.

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 foreign exchange gains or losses directly in the statement of operations for those financial instruments associated with Canada’s foreign reserves. 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.

In Brief – A plain and simple overview of PSAB’s 2020 decision to adapt IPSAS principles when developing future standards

Jun 03, 2020

On June 3, 2020, the Public Sector Accounting Board (PSAB) released this overview to explain PSAB’s 2020 decision to adapt IPSAS principles when developing future standards.

At its May 5, 2020 meeting, PSAB voted to adapt IPSAS principles when developing future standards. This decision has been years in the making, including extensive consultation with Canadian stakeholders, as part of the Board’s International Strategy project.

While PSAB has made the decision, more planning and work will be done to support stakeholders in this change. The Board itself will also continue to work on implementing this change into its due process, which will require further discussion and work in the coming year.

A basis for conclusions will be issued in July 2020 that will outline how PSAB came to this important decision.

Review the In Brief on the PSAB's website.

IPSASB issues exposure draft to clarify guidance on borrowing costs

Oct 21, 2020

On October 21, 2020, the International Public Sector Accounting Standards Board (IPSASB) released for comment Exposure Draft (ED) 74, IPSAS 5, "Borrowing Costs – Non-Authoritative Guidance". The ED proposes the addition of non-authoritative guidance to IPSAS 5. Comments are requested by March 1, 2021.

The proposed non-authoritative guidance would add implementation guidance and illustrative examples to IPSAS 5. The new material proposed in ED 74 would clarify how the existing principles for when borrowing costs can be capitalized should be applied in various regularly encountered public sector contexts. No amendments are proposed to the authoritative material in IPSAS 5.

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

IPSASB proposes to delay effective dates

Jul 15, 2020

On July 15, 2020, the International Public Sector Accounting Standards Board (IPSASB) published Exposure Draft 73, 'Covid-19: Deferral of Effective Dates', which proposes to delay the effective dates of recently published standards and amendments by one year to January 1, 2023. The ED is a response to the global COVID-19 pandemic and intended to provide stakeholders with additional implementation time.

The standards and amend­ments affected include: 

  • IPSAS 41, Financial In­stru­ments;
  • IPSAS 42, Social Benefits;
  • Long-term Interests in As­so­ci­ates and Joint Ventures (Amend­ments to IPSAS 36) andPre­pay­ment Features with Negative Com­pen­sa­tion (Amend­ments to IPSAS 41);
  • Col­lec­tive and In­di­vid­ual Services(Amend­ments to IPSAS 19); and
  • Im­prove­ment to IPSAS, 2019.

The Exposure Draft can be accessed on the IPSASB website. Comments are requested by August 15, 2020.

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