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PSAB - Revenue [Completed]

Effective date:

The new Section will apply to fiscal years beginning on or after April 1, 2022. Earlier adoption will be permitted.

Last updated:

November 2018

Overview

At its meet­ing on June 21-22, 2018, the PSAB ap­proved the fi­nal Hand­book Sec­tion PS 3400, Rev­enue. The PSAB issued the new standard in November 2018 and has is­sued In Brief ar­ti­cles and a pod­cast to help ex­plain the new Sec­tion.

This new Section establishes standards on how to account for and report on revenue. Specifically, it differentiates between revenue arising from transactions that include performance obligations and transactions that do not have performance obligations.

The main features of the new Section are:

  • Performance obligations are enforceable promises to provide specific goods or services to a specific payor.
  • Revenue from transactions with performance obligations should be recognized when (or as) the public sector entity satisfies a performance obligation by providing the promised goods or services to a payor.
  • Revenue from transactions with no performance obligations should be recognized when a public sector entity has the authority to claim or retain an inflow of economic resources and identifies a past transaction or event that gives rise to an asset.

The new Section will apply to fiscal years beginning on or after April 1, 2022. Earlier adoption will be permitted. It may be applied retroactively or prospectively.

 

Other developments

November 2018

In November 2018, the new Section PS 3400 was issued to the PSA Handbook.

April 2018

In April 2018, the staff of the PSAB updated the information in respect of this project to advise that the PSAB expects to issue the new Section PS 3400, Revenue, in Q4/2018.

January 2018

In January 2018, the PSAB staff updated this project to indicate that the PSAB expects to issue the new Section PS 3400 , Revenue, in Q3/2018.

May 2017

On May 1, 2017, the PSAB issued an Exposure Draft that proposes a framework describing two categories of revenue – exchange and unilateral. Stakeholders are encouraged to submit their comments by August 15, 2017.

January 2017

In January 2017, the staff of the PSAB updated the information in respect of this project to advise that the PSAB expects to issue an Exposure Draft in Q2/2017.

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 an Exposure Draft in Q1/2017.

December 2015

In December 2015 the PSAB staff updated the status of this project. An Exposure Draft is to be developed during the first half of 2016.

August 2013

On August 30, 2013, the PSAB issued a Statement of Principles (SOP) that contains proposals that will affect the reporting of a broad range of revenues by public sector entities.

 

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.