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Section PS 3160 - Public Private Partnerships

Effective date:

This Section applies to fiscal years beginning on or after April 1, 2023. Early adoption is encouraged.

Pub­lished by PSAB:

April 2021

Overview

This Section establishes standards on how to account for public private partnership arrangements. The main features of the new Section are:

  • Public private partnership infrastructure is procured by a public sector entity using a private sector partner that is obligated to design, build, acquire or better infrastructure; finance the infrastructure past the point where the infrastructure is ready for use; and operate and/or maintain the infrastructure.
  • Public private partnership infrastructure is recognized as an asset when the public sector entity acquires control of the infrastructure. A liability is recognized when the public sector entity recognizes an asset.
  • An infrastructure asset acquired in a private partnership arrangement is recorded at the public sector entity's cost. The liability is initially measured at the cost of the infrastructure asset.
  • Subsequent measurement of the infrastructure asset is based on the asset cost amortized in a rational and systematic manner over the useful life of the asset.
  • Subsequent measurement of a financial liability should be at amortized cost using the effective interest method. For a performance obligation, revenue should be recognized and the liability reduced in accordance with the substance of the public private partnership agreement.

 

History of Section PS 3160

Date

Development

Comments

April 2021

New Sec­tion

This Section applies to fiscal years beginning on or after April 1, 2023. Early adoption is encouraged.

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

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.