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Public sector

PSAB In Brief – Consultation Paper on Approach to International Public Sector Accounting Standards

Aug 29, 2018

On August 29, 2018, the Public Sector Accounting Board (PSAB) released an overview of the elements in PSAB’s Consultation Paper, “Reviewing PSAB’s Approach to International Public Sector Accounting Standards”.

The Consultation Paper introduces the criteria PSAB will use to make a decision on its future international strategy and illustrates the application of the criteria through four possible options.

Review the publication on the PSAB's website.

PSAB Video – Reviewing our International Strategy

Aug 21, 2018

On August 21, 2018, the Public Sector Accounting Board (PSAB) released an easy-to-understand video on their project, "Reviewing our International Strategy".

The video takes you through the key aspects of this project’s first Consultation Paper, which is out for comment until September 28, 2018.

Asset Retirement Obligations – Basis for Conclusions and new standard

Aug 01, 2018

On August 1, 2018, the Public Sector Accounting Board (PSAB) released the new standard, "Asset Retirement Obligations", Section PS 3280. They also released the Basis for Conclusions, which sets out how the PSAB reached its conclusions, and includes discussion of significant matters arising from comments received and issues raised in response to its proposals exposed.

Section PS 3280 applies to asset retirement obligations associated with tangible capital assets controlled by the public sector entity that are in productive use and no longer in productive use. Only legal obligations, including obligations created by promissory estoppel, are in scope of this standard.

The new Sec­tion applies to fis­cal years be­gin­ning on or af­ter April 1, 2021. Ear­lier adop­tion is per­mit­ted.

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

The Public Needs a Better Understanding of Public Sector Debt

Jun 14, 2018

On June 14, 2018, the International Federation of Accountants (IFAC) posted an article by Ross Campbell, Public Sector Director of the Institute of Chartered Accountants in England and Wales (ICAEW), on how it has become increasingly standard for governments in well-developed economies to borrow to pay day-to-day operating costs—that is, deficit spending.

There is some evidence to suggest that due to structural changes in well-developed economies, the correlation between economic and tax revenue growth is not as strong as it was.

There is also a demographic impact—almost well-developed nations’ populations are aging, which presents a double impact on public finances. This means that there is a decrease in the percentage of the population actively in the workforce at the same time as an increase in the demand on public services, such as pensions, social care for the elderly, and healthcare.

Without some form of change in policy or a substantial increase in the tax revenue, social provisions on the current scale is not likely to be sustainable over the long term.

Review the full article on the IFAC's website.

In Brief – PSAB’s Recent Decision on Financial Instruments – Subsequent Issues

Jun 06, 2018

On June 6, 2018, the Public Sector Accounting Board (PSAB) published this In Brief, which provides a plain and simple overview of PSAB’s March 2018 decision on the applicability of financial instruments, foreign currency, and related standards.

Review the publication on the PSAB's website.

Statement of Concepts – A Revised Conceptual Framework for the Canadian Public Sector

May 28, 2018

On May 28, 2018, the Public Sector Accounting Board (PSAB) issued a Statement of Concepts proposing a revised conceptual framework and it wants your input. Stakeholders are encouraged to submit their responses by November 28, 2018.

The proposed revised conceptual framework is intended to replace Section PS 1000, FINANCIAL STATEMENT CONCEPTS and Section PS 1100, FINANCIAL STATEMENT OBJECTIVES.

The PSAB proposes to expose a proposed revised conceptual framework that would include 10 chapters.

  • Chapter 1: Introduction to the Conceptual Framework
  • Chapter 2: Characteristics of Public Sector Entities
  • Chapter 3: Financial Reporting Objective
  • Chapter 4: Role of Financial Statements
  • Chapter 5: Financial Statement Foundations
  • Chapter 6: Financial Statement Objectives
  • Chapter 7: Qualitative Characteristics and Related Considerations
  • Chapter 8: Elements of Financial Statements
  • Chapter 9: Recognition and Measurement
  • Chapter 10: Presentation Concepts

Review the press release and Statement of Concepts on the PSAB's website.

Statement of Principles – A Revised Reporting Model for the Canadian Public Sector

May 28, 2018

On May 28, 2018, the Public Sector Accounting Board (PSAB) issued a Statement of Principles proposing a revised reporting model for the Canadian public sector. Stakeholders are encouraged to submit their responses by November 28, 2018.

The PSAB proposes to expose a proposed revised Section on financial statement presentation. The proposed revised Section would replace Section PS 1201, FINANCIAL STATEMENT PRESENTATION.

The Board concluded that:

  • The model responds to the need for understandable financial statements for the public and its elected and appointed representatives. The model proposes only elements that the public recognizes from its own finances: assets, liabilities, revenues and expenses.
  • The model is aspirational in that it provides PSAB the ability to deal with current issues, such as hedge accounting, performance obligations and government transfers; and future issues, such as heritage, natural capital and endowments, while ensuring that the economic substance of transactions and other events is reflected for improved accountability information.

Review the press release and Statement of Principles on the PSAB's website.

Consultation Paper – Reviewing PSAB’s Approach to International Public Sector Accounting Standards

May 28, 2018

On May 28, 2018, the Public Sector Accounting Board (PSAB) issued a Consultation Paper that introduces the criteria PSAB will use to make a decision on its future international strategy and illustrates the application of the criteria through four possible options. Stakeholders are encouraged to submit their responses by September 28, 2018.

The purpose of this Consultation Paper is to:

  • make stakeholders aware of the process PSAB will follow in evaluating the international strategy that best serves the public sector;
  • introduce stakeholders to the decision-making criteria the Board expects to consider in evaluating the international strategy that best serves the public sector;
  • illustrate the application of the criteria, in bullet two above, in four unique proposals the Board believes are viable international strategies available in the public sector context;
  • raise stakeholder awareness of the criteria the Board will consider in its decision making process in determining an appropriate option for its future international strategy; and
  • solicit stakeholder input on the decision-making criteria and international options proposed.

Review the press release and Consultation Paper on the PSAB's website.

IPSASB publishes proposed "Improvements to IPSAS, 2018"

Apr 16, 2018

On April 16, 2018, the International Public Sector Accounting Standards Board (IPSASB) published an exposure draft "Improvements to IPSAS, 2018", which sets out proposed amendments to International Public Sector Accounting Standards (IPSAS) to address issues raised by stakeholders and to converge with amendments to IFRS® Standards. Comments are requested by July 15, 2018.

The proposed IFRS convergence amendments reflect the following International Accounting Standards Board amendments:

  • Annual Improvements to IFRSs 2011 – 2013 Cycle (issued December 2013)
  • Disclosure Initiative (Amendments to IAS 7) (issued January 2016)
  • Transfers of Investment Property (Amendments to IAS 40) (issued December 2016)
  • Annual Improvements to IFRSs 2014 – 2016 Cycle (issued December 2016)
  • IFRIC 22 Foreign Currency Transactions and Advance Consideration (issued December 2016)
  • Annual Improvements to IFRS Standards 2015 – 2017 Cycle (issued December 2017)
  • Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) (issued February 2018)

Review the press release and the exposure draft Improvements to IPSAS, 2018 on the IPSASB's website.

PSAB Annual Plan – 2018-2019

Apr 09, 2018

On April 9, 2018, the Public Sector Accounting Board (PSAB) released its Annual Plan, which sets out the PSAB’s key activities and project milestones in 2018-2019, helping to achieve the objectives in its three year strategic plan.

Their key strategies and objectives include:

  • Developing standards in line with due process and public interest
  • Finalizing the Conceptual Framework
  • Reviewing their approach to International Public Sector Accounting Standards
  • Encouraging stakeholders to support and accept our standards
  • Implementing a not-for-profit strategy that meets the public interest

Review the Annual Plan on the PSAB's website.

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