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PSAB - Government Not-for-Profit Strategy [ED]

Comments on Consultation Paper II are requested by May 12, 2021

Next steps:

The PSAB plans to review the feedback from its stakeholders on Consultation Paper II in Q2/2021 with the goal of finalizing its GNFPO strategy by the Fall of 2021

Last updated:

January 2021

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.

For details of the current proposal, refer to the following material on the PSAB's website:

For further details refer to the project on the PSAB’s website.

 

Other developments

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.

 

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