Public sector

PSAB’s new Conceptual Framework Issued

Dec 01, 2022

On December 1, 2022, the Public Sector Accounting Board (PSAB) added the new Conceptual Framework in the PSA Handbook. This is a significant milestone for financial reporting in the Canadian public sector. The accompanying Basis for Conclusions document explaining PSAB’s reasoning for key decisions is also available.

The approval and issuance of the Conceptual Framework is a significant milestone for PSAB and financial reporting in the Canadian public sector. The new Conceptual Framework is the foundation for public sector financial reporting standard setting.

This caps an extensive multi-year review and stakeholder consultation process after PSAB approved this high priority project to amend, if necessary:

  • the conceptual framework found in Section PS 1000, Financial Statement Concepts, and Section PS 1100, Financial Statement Objectives, with a focus on measuring the financial performance of public sector entities.
  • the reporting model in Section PS 1201, Financial Statement Presentation.

In June 2022, PSAB approved the new Conceptual Framework. The reporting model standard is expected to be approved and issued in 2023.

Review the press release and basis for conclusion on the PSAB's website.

IPSASB issues Exposure Draft 83, Reporting Sustainability Program Information

Nov 24, 2022

On November 24, 2022, the Public Sector Accounting Board (PSAB) encouraged stakeholders to respond to the International Public Sector Accounting Standards Board’s (IPSASB) recently released Exposure Draft 83, Reporting Sustainability Program Information.

Respond directly to IPSASB by January 16, 2023, to ensure Canadian-specific issues and perspectives related to public sector sustainability reporting are considered.

Review the exposure draft on the IPSASB's website.

PSAB Future Work Plan Consultation Paper

Aug 25, 2022

On August 25, 2022, the Public Sector Accounting Board (PSAB) issued its Future Work Plan Consultation to gather input on the projects it should take on, to help fulfill the strategies identified in its Strategic Plan 2022-2027. Comments are requested by November 3, 2022.

This Consultation Paper sets out future projects PSAB may consider. They are in addition to those already highlighted in its Strategic Plan for 2022-2027, some of which are underway or starting this year (see PSAB’s 2022-2023 Annual Plan). Both current and planned activities have PSAB resources allocated to them. This Consultation Paper focuses on possible topics for these new projects.

The Board proposes the following project topics:

Major projects

  • Intangibles
  • Impairment of Assets 
  • Amendment to the Introduction to Public Sector Accounting Standards

Minor projects

  • Update to accounting changes, Section PS 2120
  • Inventories
  • Update statement of recommended practice (SORP) 1, Financial Statement Discussion and Analysis (FSD&A)

Review the Consultation Paper onthe PSAB's website.

PSAB Exposure Draft – 2022-2023 Annual Improvements to Public Sector Accounting Standards

Aug 09, 2022

On Au­gust 9, 2022, the Pub­lic Sec­tor Ac­count­ing Board (PSAB) has proposed, subject to comments received following exposure, to amend the CPA Canada Public Sector Accounting (PSA) Handbook as set out in this Exposure Draft. Com­ments are re­quested by October 11, 2022.

The 2022-2023 Annual Improvements reflect proposed amendments to:

  • replace the term “summary financial statements” with “financial statements” or “financial reports”;
  • clarify the Introduction to Public Sector Guidelines and the removal of outdated guidance related to local governments;
  • update the transitional provisions in Section PS 3160, to explicitly state that early adoption is permitted;
  • change some references to the term “power” to “ability” or “authority”, as appropriate, given the use of the term “power” to reference sovereign or equivalent powers in the Conceptual Framework Chapter 5;
  • update to correct for grammatical errors in the decision tree in Section PS 3050;
  • update PSG 8, Purchased Intangibles, to clarify its application to inter-entity transactions;
  • update the designation and numbering of existing appendices in the PSA Handbook to align with categories of guidance established by the International Public Sector Accounting Standards (IPSAS). This is to ensure consistent classification of similar categories of guidance should PSAB adapt IPSAS principles set out in appendices in developing Canadian standards in the future; and
  • update the terminology in many of the standards otherwise addressed in this Exposure Draft from “government” to “public sector entity” or “entity”, as appropriate.ly­sis (FSD&A)

Re­view the Exposure Draft on ­the PSAB's web­site.

Basis for Conclusions – Government Not-for-Profit Strategy

May 05, 2022

On May 5, 2022, the Public Sector Accounting Board (PSAB) released its Basis for Conclusions for its Government Not-for-Profit (GNFP) Strategy Decision, which provides an overview of key feedback from stakeholders and how PSAB responded.

Summary of responses

What PSAB asked − Do you agree the proposed option, Option 2 – PSAS incorporating the PS 4200 series with potential customizations, best meets the Canadian public interest?

What you said − Option 2 will help improve comparability of the GNFPO financial statements. However, there was some uncertainty about how the PS 4200 series would be incorporated into PSAS and what customizations might be proposed.

What PSAB decided to do – Proceed with Option 2 as PSAB’s GNFP Strategy after careful consideration of feedback to the Consultation Papers. An implementation plan will be developed, setting out how to go about incorporating the PS 4200 series into PSAS.

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

PSAB’s 2022 – 2027 Strategic Plan Feedback Statement

Apr 21, 2022

On April 21, 2022, the Public Sector Accounting Board (PSAB) released its Feedback Statement for the Draft 2022-2027 Strategic Plan Consultation Paper, which provides an overview of key feedback received by stakeholders and how PSAB responded.

Review the following information on PSAB's website:

IPSASB issues Exposure Draft 81, Proposed Update to Conceptual Framework

Feb 22, 2022

The International Public Sector Accounting Standards Board (IPSASB) issued Exposure Draft 81, "Proposed Update to Conceptual Framework". PSAB encourages stakeholders to send comments directly to the IPSASB by May 31, 2022. If you would like PSAB to consider your feedback in its response, comments are requested by May 16, 2022.

ED 81 updates Chapter 3, Qualitative Characteristics, and Chapter 5, Elements of Financial Statements, of the Conceptual Framework, in light of:

  • the IPSASB’s experience in applying the Conceptual Framework to the development and maintenance of International Public Sector Accounting Standards (IPSAS); and
  • developments in international thinking about conceptual issues since the Framework was approved in 2014.

PSAB encourages stakeholders to review the ED and send comments to the IPSASB by May 31, 2022.

Review the press release and exposure draft.

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