PSAB - Government Not-for-Profit Strategy [Completed]
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Next steps: |
In December 2022, PSAB expects a presentation on a project proposal to review tangible capital assets and collections. This will be the first in a series of standard-level projects. A webinar is also planned for the Fall of 2022 to explain the GNFP Strategy decision and to provide an overview of the implementation plan. |
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Last updated: |
June 2022 |
Overview
In developing its 2017-2022 Strategic Plan, the PSAB heard from its stakeholders that its government not-for-profit organization (GNFPO) strategy required reassessment.
Over the 2017-2022 period, the Board intends to:
- understand the fiscal and the regulatory environment in which GNFPOs operate;
- understand the financial reporting needs and concerns of the GNFPO stakeholders;
- publish a consultation paper designed to seek input on key areas that will inform the board in developing the GNFPO strategy; and
- develop a GNFPO strategy.
As part of the latest stage of this project, on January 11, 2021, the PSAB issued Consultation Paper II, together with related supporting information, in order to develop a strategy for financial reporting by GNFPOs. Comments on the Consultation Paper are requested by May 12, 2021.
The purpose of Consultation Paper II 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.
The options identified in the Consultation Paper are:
- Option 1 – Status quo i.e., Continue with the existing practice as detailed in the PSA Handbook. GNFPOs apply public sector accounting standards (PSAs) with or without the PS 4200 series.
- Option 2 – PSAs incorporate the PS 4200 series with potential customizations.
- Option 3 – Apply another source of GAAP
- Option 3A: In the Introduction to PSAs, GNFPOs would be directed to follow CPA Canada Handbook – Accounting, Part III, using Part II of the Handbook as reference standards. (This approach was taken prior to 2012 when GNFPOs were directed to follow private sector standards.)
- Option 3B: In the Introduction to PSAs, a specific GNFPO subsector(s) would be identified and directed to follow CPA Canada Handbook – Accounting, Part III, using Part II as reference standards.
In Consultation Paper II, PSAB proposes that GNFPOs should apply Option 2. 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.
On May 5, 2022, 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.
An implementation plan is being developed and is expected to be approved by PSAB at its June 2022 meeting. Once approved, the first standards-level project will begin, following due process.
Other developments
May 2022
On May 5, 2022, the 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.
November 2021
The PSAB staff updated the status of this project to indicate that the Board is currently reviewing the feedback received on its Consultation II with the goal of finalizing its GNFPO strategy.
April 2021
On April 21, 2021, the PSAB announced that the comment periods are extended from May 12 to June 30, 2021.
January 2021
On January 11, 2021, the PSAB issued Consultation Paper II , 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.
May 2020
During May 2020, the PSAB staff updated the status of this project to advise that, as it deliberates the feedback, the PSAB is developing a second Consultation Paper that will propose a GNFP strategy.
April 2020
During April 2020, the PSAB staff updated the status of this project to advise that the PSAB is continuing to deliberate the feedback on its Consultation Paper.
May 2019
On May 8, 2019, the PSAB issued its Government Not-for Profit (GNFP) Consultation Paper to inform the readers of the results of the 2017-2018 consultations and seek feedback on matters that would assist them in determining next steps relating to the government not-for-profit strategy. Comments are requested by September 30, 2019.
