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

  • PSAS - PSAB Image

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

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