Section PS 1201 - Financial Statement Presentation
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Effective date: |
Section PS 1201 is effective in the period Section PS 2601, Foreign Currency Translation, and Section PS 3450, Financial Instruments, are adopted. |
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Published by the PSAB: |
June 2011 |
Overview
This Section establishes general reporting principles and standards for the disclosure of information in government financial statements. The principles and standards are based on the concepts underlying government financial statements in Section PS 1000 Financial Statement Concepts, and the objectives of government financial statements set out in Section PS 1100 Financial Statement Objectives.
The function of financial statements is to communicate information to users that is relevant to the needs of those for whom the statements are prepared, reliable, comparable, understandable and clearly presented in a manner that maximizes its usefulness. The general reporting principles provide guidance on the reporting of information in financial statements to fulfill that function. The financial statements of a government should be clearly identified and should include or be accompanied by an acknowledgment of the government's responsibility for their preparation.
The financial statements must include an acknowledgment of the government's responsibility for their preparation to ensure that users are aware of who is responsible for their preparation and that the government has approved them. Such an acknowledgment could be expressed in narrative form signed by the appropriate minister or elected official, or a delegated government official.
History of Section PS 1201
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Date |
Development |
Comments |
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June 2011 |
New Section |
This Section revises and replaces Section PS 1200 Financial statement presentation. It is effective for (i) government organizations for fiscal years beginning on or after April 1, 2012; and (ii) governments for fiscal years beginning on or after April 1, 2015. Earlier adoption is permitted. Sections PS 2601 Foreign currency translation, and PS 3450 Financial instruments, are to be adopted at the same time. |
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March 2014 |
The transitional provisions have been amended to extend the effective date for governments by one year to fiscal years beginning on or after April 1, 2016. Earlier adoption is permitted. |
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June 2015 |
The transitional provisions have been amended to extend the effective for governments by three further years to fiscal years beginning on or after April 1, 2019. Earlier adoption is permitted. |
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March 2018 |
The transitional provisions have been amended to extend the effective for governments by two further years to fiscal years beginning on or after April 1, 2021. Earlier adoption is permitted. |
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| October 2020 |
The amendments permit the federal government to present exchange gains and losses related to its foreign reserves, including the associated derivatives, directly in the statement of operations. |
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| November 2020 |
Amendment re purchased intangibles. Refer to Completed Project. |
This Section has been amended to remove disclosure requirements for unrecognized purchased intangibles. These disclosures are irrelevant given amendments to Section PS 1000 allowing recognition of purchased intangibles in financial statements. The amendments are effective for fiscal years beginning on or after April 1, 2023, with earlier application permitted. Retroactive or prospective application is allowed. |
| November 2020 |
Amendments to effective date for governments |
The transitional provisions have been amended to extend the effective for governments by one further year to fiscal years beginning on or after April 1, 2022. Earlier adoption is permitted. |
| April 2021 |
Narrow-scope amendments to financial instruments – Phase III |
Phase III consisted of two proposals, as follows: (i) a proposal to clarify the presentation of derivatives, namely that public sector entities may present the remeasurement impact of derivatives separately on the statement of change in net debt; and (ii) a proposal to allow all public sector entities to make an accounting policy election to recognize exchange gains and losses, including the exchange gain or loss component of changes in fair value, directly in the statement of operations. These amendments are effective for fiscal years beginning on or after April 1, 2022, with earlier application permitted. Transitional provisions have also been introduced in Section PS 2601. |
Note: The above summary does not include details of consequential amendments made as the result of other projects.
Public Sector Accounting Discussion Group meetings
- November 19, 2018 - Sections PS 1000 and PS 1201: Green Infrastructure – Further Issues
- November 17, 2017 - Sections PS 1000, PS 1201 and PS 3150: Green Infrastructure
- November 18, 2016 - Section PS 1000 and PS 1201: Recognition Prohibitions and Urban Forests and Recognition Prohibitions and Early Intervention Investments
- May 7, 2015 - Section PS 1201: The Term “Net Debt”
- January 15, 2015 - Section PS 1201: Presentation of Budget Information
- January 7, 2014 - Section PS 1201: Presentation of Budget Information and Section PS 1201: Reporting on Financial Position by a Governmental Unit
Amendments under consideration
