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Section PS 3400 - Revenue

Effective date:

Effective for fiscal years beginning on or after April 1, 2022. Earlier adoption is permitted. The Section may be applied retroactively or prospectively.

Published by the PSAB:

November 2018

Overview

This Section establishes standards on how to account for and report on revenue. Specifically, it differentiates between revenue arising from transactions that include performance obligations and transactions that do not have performance obligations.

The main features of the Section are:

  • Performance obligations are enforceable promises to provide specific goods or services to a specific payor.
  • Revenue from transactions with performance obligations should be recognized when (or as) the public sector entity satisfies a performance obligation by providing the promised goods or services to a payor.
  • Revenue from transactions with no performance obligations should be recognized when a public sector entity has the authority to claim or retain an inflow of economic resources and identifies a past transaction or event that gives rise to an asset.

 

History of Section PS 3400

Date

Development

Comments

November 2018

New Sec­tion finalized

This Sec­tion establishes standards on how to account for and report on revenue. It applies to fiscal years beginning on or after April 1, 2022. Earlier adoption is permitted. The Section may be applied retroactively or prospectively.

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

Public Sector Accounting Discussion Group meetings

  • None

Correction list for hyphenation

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