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

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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.

Correction list for hyphenation

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