Overview

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

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