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Section PS 3390 - Contractual obligations

Effective date:

September 1, 2004

Published by the PSAB:

September 2004


This Section:

  1. defines and establishes disclosure standards on contractual obligations in government financial statements;
  2. but does not include disclosure standards for specific types of contractual obligations.

Contractual obligations are obligations of a government to others that will become liabilities in the future when the terms of those contracts or agreements are met. Contractual obligations are distinct from liabilities as there has been no past transaction or event obligating the government to a future sacrifice of economic benefits at the financial statement date. Until a transaction or event occurs under a contract, a government does not have a liability. Disclosure of information about contractual obligations relates to the unperformed portion of those contracts.

History of Section PS 3390




September 2004

New Section

This new Section establishes disclosure standards for contractual obligations in government summary financial statements.

Effective for fiscal years beginning on or after September 1, 2004.

March 2012

Annual improvements

This Section is amended to clarify the interaction with Section PS 3450 Financial instruments.

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.