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PSAB - Withdrawal of Disclosure of Related Party Transactions by Not-for-Profit Organizations, Section PS 4260 [Completed]

Proposed effective date:

The PSAB in­tends that, for NF­POs that ap­ply the PSA Hand­book with Sec­tions PS 4200 to PS 4270 to pre­pare their fi­nan­cial state­ments, PS Sec­tion 4260 will be with­drawn and PS Sec­tion 2200 will in­stead ap­ply for fis­cal years be­gin­ning on or af­ter April 1, 2017.  Ear­lier adop­tion of PS Sec­tion 2200 is be per­mit­ted. Sec­tion PS 2200 is to be ap­plied prospec­tively. The PSAB is­sued the fil­ing in­struc­tion to with­draw Sec­tion PS 4260 from the PSA Hand­book in De­cem­ber 2016.

Last up­dated:

December 2016


Principle 12 of the Statement of Principles, “Improvements to Not-for-Profit Standards,” jointly issued by PSAB and the Accounting Standards Board in April 2013, states that a not-for-profit organization (NFPO) applying the PSA Handbook including the guidance specific to not-for-profit organizations (the PS 4200 series) should continue to apply Section PS 4260, Disclosure of Related Party Transactions by Not-for-profit Organizations, pending completion of PSAB’s Related Party Transactions project.

PSAB’s Related Party Transactions project was completed and Section PS 2200, Related Party Disclosures, was issued in March 2015. Sections PS 2200 and PS 4260 are very similar. While some minor terminology differences exist, the basic intent of each Section is the same.

While Section PS 2200 does not include the notion of significant influence or economic interest, NFPOs that apply the PSA Handbook including the PS 4200 series can find similar disclosure requirements for these concepts in Section PS 4250, Reporting Controlled and Related Entities by Not-for-profit Organizations.

The PSAB intends that, for NFPOs that apply the PSA Handbook with Sections PS 4200 to PS 4270 to prepare their financial statements, Section 2200 would apply to fiscal years beginning on or after April 1, 2017.  Earlier adoption would be permitted. The Section would be applied prospectively.

In September 2016, the PSAB approved the withdrawal of Section PS 4260, Disclosure of Related Party Transactions by Not-for-Profit Organizations.


Other developments

December 2016

In December 2016, CPA Canada issued the filing instruction to withdraw Section PS 4260 from the PSA Handbook.

April 2016

In April 2016, the staff of the PSAB updated the information in respect of this project to advise that the PSAB expects to issue the final Handbook amendments in Q4/2016.

January 2016

On January 21, 2016, the Public Sector Accounting Board (PSAB) issued an Exposure Draft proposing to withdraw Section PS 4260 and add a transitional provision to Section PS 2200, Related Party Disclosures. Stakeholders are encouraged to submit their comments by April 29, 2016.


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