Section PS 1150 - Generally accepted accounting principles

Effective date:	April 1, 2005 (Certain local governments – April 1, 2006)
Published by PSAB:	February 2005

Overview

This Section:

establishes standards for financial reporting in accordance with generally accepted accounting principles;
describes what constitutes generally accepted accounting principles, and their sources; and
provides guidance on sources to consult when selecting accounting policies and determining appropriate disclosures, when a matter is not dealt with explicitly in the primary sources of generally accepted accounting principles.

Regarding the sources of GAAP, PS 1150 Generally accepted accounting principles identifies both primary sources of GAAP and other sources of GAAP.

Primary sources of GAAP are the PSAS Handbook Sections themselves, Public Sector Guidelines and any accompany appendices (including illustrative material) that accompany the Sections and the Guidelines.
Other sources of GAAP include pronouncements issued by other bodies authorized to issue accounting standards which include accounting pronouncements published by the Canadian Accounting Standards Board and the International Accounting Standards Board. Professional judgment must be exercised in evaluating the appropriateness of other sources of GAAP.

Date	Development	Comments
February 2005	New Section	This new Section replaces paragraph PS 1200.014 Financial statement presentation — federal, provincial & territorial governments, and paragraph PS 1700.44 Objectives of financial statements — local governments.
April 2006	New transitional provisions	New transitional provisions have been added that defer the application of the Section by one year for certain local governments.
April 2021	Modification of the Canadian Public Sector GAAP Hierarchy	On April 1, 2021, Section PS 1150 has been amended to position International Public Sector Accounting Standards as the first accounting framework to consult in situations not covered by primary sources of GAAP or for assistance in applying a primary source of GAAP to specific circumstances and it is necessary to consult pronouncements issued by other bodies authorized to issue accounting standards. The amendments are effective for fiscal years beginning on or after April 1, 2021. The amendment would be applied only to new transactions or other events for which the entity has no existing accounting policy. The amendment does not require revision of existing accounting policies.
June 2021	Modification of the Canadian Public Sector GAAP Hierarchy	On June 1, 2021, the PSAB added the Basis of Conclusions related to the April 2021 amendments to Section PS 1150 to the PSA Handbook.

Note: The above summary does not include details of consequential amendments made as the result of other projects.