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PSAB - Revenue [ED]

Comment period ended on August 15, 2017

Proposed effective date:

The new Section would apply to fiscal years beginning on or after April 1, 2021. Earlier adoption is permitted. The Section would be accounted for as a change in accounting policy applied retroactively with restatement of prior periods.

Nest steps:

The PSAB expects to issue the new Section PS 3400, Revenue, in Q3/2018

Last updated:

January 2018


The main features of the proposals in the SOP are as follows:

  1. The focus is on two main areas of revenue: (a) exchange transactions; and (b) unilateral (non-exchange) transactions.
  2. The presence of performance obligations for the public sector entity receiving the revenue is the distinguishing feature of an exchange transaction.
  3. Performance obligations are enforceable promises to provide goods or services.
  4. An exchange transaction is evaluated to identify which goods or services are distinct and accounted for as a separate performance obligation.
  5. Revenue from an exchange transaction is recognized as the public sector entity satisfies a performance obligation.
  6. Unilateral revenues are recognized when there is the authority and a past event that gives rise to a claim of economic resources.
  7. When applying PSAB’s general recognition criteria, revenue is not reduced when collectability (associated with credit risk) is uncertain.

The SOP also includes proposals on issues that affect when revenue is recognized, how it is measured, as well as its presentation and disclosure.

PSAB’s revenue project excludes government transfers. The project deals with revenues in a broad sense, encompassing items such as revenues derived from the issue of drivers’ licenses and passports.


Other developments

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.