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PSAB - Statement of Principles – A Revised Reporting Model for the Canadian Public Sector [ED]

Com­ment pe­riod ends on November 28, 2018

Pro­posed ef­fec­tive date:

The effective date of the proposed revised reporting model (which includes material that will replace Section PS 1201, Financial Statement Presentation) has not yet been specified

Next steps

The PSAB will review the responses to its exposure draft in Q4/2018

Last up­dated:

June 2018

Overview

The Public Sector Accounting Board (PSAB) issued a Statement of Principles proposing a revised reporting model for the Canadian public sector. PSAB is proposing a revised reporting model that builds on the existing reporting model in Section PS 1201, Financial Statement Presentation.

After extensively considering the relative merits of many models and the input received from stakeholders to the three Task Force Consultation Papers:

The Board concluded that:

  • The model responds to the need for understandable financial statements for the public and its elected and appointed representatives. The model proposes only elements that the public recognizes from its own finances: assets, liabilities, revenues and expenses.
  • The model is aspirational in that it provides PSAB the ability to deal with:
    • current issues, such as hedge accounting, performance obligations and government transfers; and
    • future issues, such as heritage, natural capital and endowments, while ensuring that the economic substance of transactions and other events is reflected for improved accountability information.
  • The model is appropriate for all public sector entities:
    • stakeholders related to the different levels and types of governments, government components and certain government organizations will recognize the proposed model as it builds on the existing model.
    • Stakeholders in the public sector not-for-profit community will recognize and understand many of the aspects of the proposed model as there are commonalities and overlap with their current model. It, therefore, provides a base for the Board’s consideration of the needs and issues of government not-for-profit organizations (NFPOs) through its not-for-profit strategy. (NOTE: the PS 4200 series will continue to exist for those organizations that apply them. Any decisions related to these standards will be made through the NFPO project.)
  • This model does not require the Board to adopt an international convergence strategy, but it will not add new obstacles to such convergence if the Board’s work over the next few years supports such a strategy. There are areas of significant overlap with the conceptual framework and reporting model of the International Public Sector Accounting Standards Board (IPSASB).

For the details and main features of the proposed model, refer to the PSAB’s press release.

 

Other de­vel­op­ments

May 2018

On May 28, 2018, the PSAB issued a Statement of Principles proposing a revised reporting model for the Canadian public sector. Comments are requested by November 28, 2018.

 

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