Date

Development

Comments

June 2011

New Section

This new Section establishes standards for recognizing and measuring financial assets, financial liabilities and non-financial derivatives.

Effective for: (i) Government organizations – fiscal years beginning on or after April 1, 2012; and (ii) Governments – fiscal years beginning on or after April 1, 2015. Earlier adoption is permitted.

Sections PS 1201 Financial statement presentation, and PS 2601 Foreign currency translation, are to be adopted at the same time.

May 2012

Amended transitional provisions

The transitional provisions for this Section have been amended to clarify that the measurement provisions are applied prospectively. A new transitional provision has been added that applies to government organizations transitioning from the standards in Part V of the Handbook – Accounting with items classified as available for sale.

February 2013

Clarification and new transitional provisions

The Section has been amended to clarify that the requirements in Section PS 3100 Restricted assets and revenues, apply when reporting on externally restricted assets that are financial instruments. As well, a new transitional provision has been added.

August 2013

Clarification of the effective dates

This Section has been amended to clarify the effective dates for governments and government organizations.

March 2014

Revised transitional provisions

The transitional provisions have been amended to extend the effective date for governments by one year to fiscal years beginning on or after April 1, 2016. Earlier adoption is permitted.

June 2015

Revised transitional provisions

The transitional provisions have been amended to extend the effective date for governments by three years to fiscal years beginning on or after April 1, 2019. Earlier adoption is permitted.

March 2018

Re­vised tran­si­tional pro­vi­sions

The PSAB (i) concluded that the PSA Handbook sections on foreign currency and financial instruments were appropriate for public sector entities including governments, and (ii) approved an extension of the effective date for governments of Sections PS 3450, Financial Instruments, and PS 2601, Foreign Currency Translation, to fiscal years beginning on or after April 1, 2021. Ear­lier adop­tion is per­mit­ted.

April 2020

Narrow Scope Amendments – Phase I

This Section has been amended to improve specific areas. The main features of the amendments include: (i) changes to the accounting treatment for bond repurchase transactions; (ii) clarification on aspects of the Section's application; and (iii) addition of new guidance to the transitional provisions. The amendments are effective for fiscal years beginning on or after April 1, 2021, with earlier application permitted.

Narrow-scope amendments re financial instruments – Phase II

The amendments permit the federal government to present exchange gains and losses related to its foreign reserves, including the associated derivatives, directly in the statement of operations.

Amend­ments to ef­fec­tive date for gov­ern­ments

The tran­si­tional pro­vi­sions have been amended to ex­tend the ef­fec­tive for gov­ern­ments by one further year to fis­cal years be­gin­ning on or af­ter April 1, 2022. Ear­lier adop­tion is per­mit­ted.

Narrow-scope amendments to financial instruments – Phase III

Phase III consisted of two proposals, as follows: (i) a proposal to clarify the presentation of derivatives, namely that public sector entities may present the remeasurement impact of derivatives separately on the statement of change in net debt; and (ii) a proposal to allow all public sector entities to make an accounting policy election to recognize exchange gains and losses, including the exchange gain or loss component of changes in fair value, directly in the statement of operations. These amendments are effective for fiscal years beginning on or after April 1, 2022, with earlier application permitted. Transitional provisions have also been introduced in Section PS 2601.