Section PS 3420 - Inter-entity transactions
Effective date: |
April 1, 2017 |
Published by the PSAB: |
March 2015 |
Overview
This Section establishes standards on how to account for and report transactions between public sector entities that comprise a government's reporting entity from both a provider and recipient perspective.
The main features of the new Section are:
- Under a policy of cost allocation, revenues and expenses are recognized on a gross basis.
- Transactions are measured at the carrying amount, except in specific circumstances.
- A recipient may choose to recognize unallocated costs for the provision of goods and services and measure them at the carrying amount, fair value or other amount dictated by policy, accountability structure or budget practice.
- The transfer of an asset or liability for nominal or no consideration is measured by the provider at the carrying amount and by the recipient at the carrying amount or fair value.
- Inter-entity transactions are considered in conjunction with, Section PS 2200 Related Party Disclosures.
History of Section PS 3420
Date |
Development |
Comments |
March 2015 |
New Section |
This new Section establishes standards on how to account for and report transactions between public sector entities that comprise a government's reporting entity from both a provider and recipient perspective. This Section applies to fiscal years beginning on or after April 1, 2017. Earlier adoption is permitted. |
April 2023 |
PSAB Annual Improvements 2022-2023 – see project |
The amendment updates Section PS 3420, to clarify the application of Public Sector Guideline PSG-8, Purchased Intangibles, to inter-entity transactions. The amendment is effective immediately. |
Note: The above summary does not include details of consequential amendments made as the result of other projects.