PSAB – Annual Improvements 2022-2023 [ED]

Comments are requested by October 11, 2022.

Next steps:

The first portion of the updates to the PSA Handbook in respect of this project were issued on April 1, 2023. The remaining updates to the PSA Handbook in respect of this project will be issued later in 2023

Last updated:

April 2023

Overview

The Public Sector Accounting Board (PSAB) has adopted an Annual Improvements process to make minor improvements to the CPA Canada Public Sector Accounting (PSA) Handbook or Statements of Recommended Practices (other guidance).

The Annual Improvements process:

  • clarifies standards or other guidance; or
  • corrects relatively minor unintended consequences, conflicts or oversights.

Major or narrow-scope amendments to the standards or other guidance are not included in the Annual Improvements process.

On August 9, 2022, the Public Sector Accounting Board (PSAB) has proposed, subject to comments received following exposure, to amend the CPA Canada Public Sector Accounting (PSA) Handbook as set out in this Exposure Draft. Comments are requested by October 11, 2022.

The 2022-2023 Annual Improvements reflect proposed amendments to:

  • replace the term “summary financial statements” with “financial statements” or “financial reports”;
  • clarify the Introduction to Public Sector Guidelines and the removal of outdated guidance related to local governments;
  • update the transitional provisions in Section PS 3160, to explicitly state that early adoption is permitted;
  • change some references to the term “power” to “ability” or “authority”, as appropriate, given the use of the term “power” to reference sovereign or equivalent powers in the Conceptual Framework Chapter 5;
  • update to correct for grammatical errors in the decision tree in Section PS 3050;
  • update PSG 8, Purchased Intangibles, to clarify its application to inter-entity transactions;
  • update the designation and numbering of existing appendices in the PSA Handbook to align with categories of guidance established by the International Public Sector Accounting Standards (IPSAS). This is to ensure consistent classification of similar categories of guidance should PSAB adapt IPSAS principles set out in appendices in developing Canadian standards in the future; and
  • update the terminology in many of the standards otherwise addressed in this Exposure Draft from “government” to “public sector entity” or “entity”, as appropriate (FSD&A)

Review the Exposure Draft on the PSAB's website.

On Aoril 1, 2023, the PSAB issued the following amendments to the PSA Handbook as a result of the 2022-2023 annual improvements project: (i) updated the transitional provisions in Section PS 3160, Public Private Partnerships, to explicitly state that early adoption is permitted; and (ii) updated Section PS 3420, Inter-Entity Transactions, to clarify the application of Public Sector Guideline, PSG-8, Purchased Intangibles, to inter-entity transactions. The remaining amendments approved as a result of the 2022-2023 annual improvements will be included in a future PSA Handbook release during 2023. The amendments are effective immediately.

Other Developments

On Aoril 1, 2023, the PSAB issued the first portion of the amendments to the PSA Handbook as a result of the 2022-2023 annual improvements project. The second portion of the remaining amendments approved as a result of the 2022-2023 annual improvements will be included in a future PSA Handbook release during 2023.

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