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Section PS 3300 - Contingent liabilities

Effective date:

September 1, 2004

Published by the PSAB:

September 2004


 This Section:

  1. defines and establishes standards on how to account for and report contingent liabilities in government financial statements;
  2. but does not include standards for specific types of contingent liabilities, which are dealt with in individual Public Sector Accounting Handbook Sections.

Contingent liabilities are possible obligations that may result in the future sacrifice of economic benefits arising from existing conditions or situations involving uncertainty. That uncertainty will ultimately be resolved when one or more future events not wholly within the government's control occurs or fails to occur. Resolution of the uncertainty will confirm the incurrence or non-incurrence of a liability.

A contingent liability is recognized when it is likely a future event will confirm that a liability has been incurred and the amount can be reasonably estimated. It is derecognized when it is settled or otherwise extinguished, or when the existence of a liability at the financial statement date is unlikely.

History of Section PS 3300




September 2004

New Section

This new Section establishes recognition and disclosure standards relating to contingent 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

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.