The Conceptual Framework for Financial Reporting in the Public Sector

Effective date:

The Conceptual Framework applies to fiscal years beginning on or after April 1, 2026. Earlier adoption is permitted. This Conceptual Framework is to be applied prospectively.

Published by PSAB:

December 2022

Overview

The Public Sector Accounting Board's (PSAB) Conceptual Framework for Financial Reporting in the Public Sector (the Conceptual Framework) replaces the conceptual aspects of Section PS 1000, Financial Statement Concepts, and Section PS 1100, Financial Statement Objectives.

The Conceptual Framework includes:

  • characteristics of public sector entities;
  • objective of financial reporting;
  • primary users of financial reporting and their expectations;
  • role of financial statements;
  • foundations and objectives of financial statements;
  • qualitative characteristics of information in financial statements and related considerations;
  • definitions of elements;
  • criteria of general recognition and derecognition; and
  • concepts of general measurement and presentation.

The Conceptual Framework applies to fiscal years beginning on or after April 1, 2026. Earlier adoption is permitted. This Conceptual Framework is to be applied prospectively.

For standard setting by PSAB, this Conceptual Framework applies immediately, once approved (i.e., June 2022).

 

History of the Conceptual Framework

Date

Development

Comments

December 2022

The Conceptual Framework was issued to the PSA Handbook on December 1, 2022. Refer to Completed Project.

The Conceptual Framework replaces Financial Statement Concepts, Section PS 1000, and Financial Statement Objectives, Section PS 1100, which will be withdrawn. The Conceptual Framework applies to fiscal years beginning on or after April 1, 2026. Earlier adoption is permitted. This Conceptual Framework is to be applied prospectively.

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

 

Amendment under consideration

  • None

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