This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice (http://www2.deloitte.com/ca/en/legal/cookies.html) for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

2021

Exposure Drafts – Revised Conceptual Framework for Financial Reporting in the Canadian Public Sector

Jan 11, 2021

On January 11, 2021, the Pub­lic Sec­tor Ac­count­ing Board (PSAB) issued two Exposure Drafts together with related supporting information in respect of its project to develop a new Conceptual Framework for financial reporting in the Canadian public sector. Com­ments on the Exposure Drafts are re­quested by May 12, 2021.

The Exposure Drafts propose:

  • replacing Section PS1000, Financial Statement Concepts, and Section PS1100, Financial Statement Objectives, with a new 10 chapter Conceptual Framework; and
  • making consequential amendments to various other Sections in the PSA Handbook.

The Conceptual Framework will not be a standard and will not override specific standards. Hence, the changes to the existing conceptual framework would not have an immediate effect on the financial statements of most reporting entities. However, entities could be affected by the changes if they need to use the revised Conceptual Framework to develop or select accounting policies when no standard specifically applies to a particular economic resource, economic obligation, transaction or other event. In such circumstances, the revised Conceptual Framework would be applied prospectively. Applying the new presentation concepts in Chapter 10 of the proposed Conceptual Framework may also lead entities to review their financial statement disclosures.

The Exposure Drafts do not specify a proposed effective date for the new Conceptual Framework. They do, however, state that the PSAB will start using the revised Conceptual Framework once it is issued and that the revised concepts will guide the Board as it develops or amends standards.

For further details, refer to the following material on the PSAB's web­site:

  • Exposure Draft, The Conceptual Framework for Financial Reporting in the Public Sector;
  • Exposure Draft, Consequential Amendments Arising from the Proposed Conceptual Framework;
  • In Brief summary of the proposals;
  • Visual aid in respect of the proposals.

Exposure Drafts – Revised Financial Reporting Model for the Canadian Public Sector

Jan 11, 2021

On January 11, 2021, the Pub­lic Sec­tor Ac­count­ing Board (PSAB) issued two Exposure Drafts together with related supporting information in respect of its project to develop a new Financial Reporting Model for the Canadian public sector. Com­ments on the Exposure Drafts are re­quested by May 12, 2021.

The Exposure Drafts propose:

  • replacing the existing Section PS1201, Financial Statement Presentation, with a new Section PS1202 of the same name; and
  • making consequential amendments to various other Sections in the PSA Handbook.

The main features of the Exposure Draft relate to the financial statement package, which includes:

  • a statement of financial position (changes);
  • a statement of net financial assets or net financial liabilities (new);
  • a statement of operations (changes);
  • a statement of changes in net assets or net liabilities (new);
  • a statement of cash flow (changes); and
  • accompanying notes and schedules (changes).

The Exposure Draft also features new budget requirements.

The proposals affect the presentation of financial statements. As a result, preparers would need to update their financial systems and processes to reflect the revised financial statement presentation. The proposals build on the existing reporting model in Section PS 1201 issued in 2011. However, governments have not yet adopted this model as adopting it is required coincident with governments adopting the financial instrument suite of standards.

Subject to comments received, the PSAB proposes that the effective date of the new Financial Reporting Model will be for fiscal years beginning on or after April 1, 2024 with earlier adoption

permitted. The Section is to be applied retroactively with restatement of prior periods. Section PS 1202 would apply to all entities that prepare financial statements in accordance with the PSA Handbook, except for those applying the PS 4200 series and the reporting model contained therein.

For further details, refer to the following material on the PSAB's web­site:

  • Exposure Draft, Financial Statement Presentation, Proposed Section PS 1202;
  • Exposure Draft, Consequential Amendments Arising from the Financial Statement Presentation Standard, Proposed Section PS 1202
  • In Brief summary of the proposals;
  • Visual aid to the proposals

PSAB Government Not-for-Profit Strategy Consultation Paper II

Jan 11, 2021

On January 11, 2021, the Pub­lic Sec­tor Ac­count­ing Board (PSAB) issued a new Consultation Paper together with related supporting information in respect of its project to develop a strategy for financial reporting by government not-for-profit organizations. Com­ments on the Consultation Paper are re­quested by May 12, 2021.

In PSAB’s 2017-2022 Strategic Plan, the Board signaled intent to understand the needs and concerns of government not-for-profit Organizations (GNFPOs) and consider if some standards should be applied differently by them.

The purpose of this Consultation Paper is to:

  • summarize the feedback to Consultation Paper I;
  • describe the options considered for a GNFPO Strategy;
  • describe the decision-making criteria used to evaluate the options; and
  • propose a GNFPO Strategy.

In this Consultation Paper, of the three options identified, PSAB proposes that GNFPOs should apply Option 2 – PSAS incorporating the PS 4200 series with potential customizations as the strategy going forward. As part of this proposal, the existing standards in the PS 4200 series would be reviewed to determine if they should be retained and added to PSAS. This may involve amending standards to update them and ensure consistency with PSAB’s conceptual framework. Also, PSAB would be able to provide customized solutions for GNFPOs if it identifies substantive and distinct accountabilities warranting a modification of existing PSAS.

PSAB expects to be in a position to decide on the future of its GNFPO Strategy by late fall 2021, once it has considered all responses to Consultation Paper II. When it has decided, the Board will explain the reasoning for its future GNFPO Strategy through various communication channels.

For further details, refer to the following material on the PSAB'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.