Section PS 3200 - Liabilities
Effective date: |
September 1, 2004 |
Published by the PSAB: |
September 2004 |
Overview
This Section:
- provides guidance for applying the definition of liabilities set out in Section PS 1000 Financial statement concepts, and establishes general recognition and disclosure standards for liabilities; but
- does not include standards for recognition and disclosure of specific types of liabilities, which are dealt with in individual Public Sector Accounting Handbook Sections.
Liabilities are present obligations of a government to others arising from past transactions or events, the settlement of which is expected to result in the future sacrifice of economic benefits.
Liabilities have three essential characteristics:
- they embody a duty or responsibility to others, leaving a government little or no discretion to avoid settlement of the obligation;
- the duty or responsibility to others entails settlement by future transfer or use of assets, provision of goods or services, or other form of economic settlement at a specified or determinable date, on occurrence of a specified event, or on demand; and
- the transactions or events obligating the government have already occurred.
Liabilities are recognized in the financial statements when:
- there is an appropriate basis of measurement; and
- a reasonable estimate can be made of the amount involved.
History of Section PS 3200
Date |
Development |
Comments |
September 2004 |
New Section |
This new Section establishes recognition and disclosure standards relating to liabilities reported in government summary financial statements. Effective for fiscal years beginning on or after September 1, 2004. |
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 17, 2017 - Sections PS 3200, PS 3300 and PS 3390: Social Impact Bonds – Government Funder Perspective
- March 3, 2016 - Sections PS 1000, PS 3100, PS 3200 and PS 3210: Endowments – Selected Issues
- October 27, 2015 - Sections PS 3200, PS 3250 and PS 3255: Vacation Paid in the Year of Retirement
- May 7, 2015 - Sections PS 3200 and PS 3260: Remediation Obligations