PSAB - Financial Instruments – Subsequent Issues [Completed]
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Next Steps: |
At its meeting on March 22-23, 2018, the PSAB (i) concluded that the PSA Handbook sections on foreign currency and financial instruments were appropriate for public sector entities including governments, and (ii) approved an extension of the effective date for governments of Sections PS 3450, Financial Instruments, and PS 2601, Foreign Currency Translation, to fiscal years beginning on or after April 1, 2021. As well, as part of a future project to be carried out prior to governments being required to adopt these two sections, the PSAB plans to issue an exposure draft to improve the transitional provisions for these standards and potentially address other non-hedge accounting issues raised during the consultation process. |
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Last updated: |
October 2019 |
Overview
The purpose of the project was to consider the appropriateness of Sections PS 3450, Financial Instruments, and PS 2601, Foreign Currency Translation, for public sector entities, including governments, and whether any amendments were necessary including clarifications to the transitional provisions.
At its meeting on March 22-23, 2018, the PSAB (i) concluded that the PSA Handbook sections on foreign currency and financial instruments were appropriate for public sector entities, including governments, and (ii) approved an extension of the effective date for governments of Sections PS 3450, Financial Instruments, and PS 2601, Foreign Currency Translation, to fiscal years beginning on or after April 1, 2021. As well, as part of a future project to be carried out prior to governments being required to adopt these two sections, the PSAB plans to issue an exposure draft to improve the transitional provisions for these standards and potentially address other non-hedge accounting issues raised during the consultation process.
In making these decisions, the Board considered comments received from Canadian stakeholders on the International Public Sector Accounting Standards Board’s Exposure Draft 62, “Financial Instruments,” as well the feedback received from PSAB’s different stakeholder groups.
Other developments
June 2018
On June 6, 2018, the PSAB published an In Brief document, which provides a concise overview of PSAB’s March 2018 decision on the applicability of financial instruments, foreign currency, and related standards to public sector entities, including governments.
December 2015
In December 2015, the PSAB staff updated this project to advise that further research is being conducted and that the next steps are to be determined.
October 2014
On October 10, 2014 the PSAB issued an ED clarifying aspects of the scope of application, and adding new guidance and transitional provisions to Section PS 3450, Financial Instruments.
