PSAB

PSAB Annual Report 2023-2024

Chair Message

Photo of Clyde MacLellan This past year we continued to follow our 2022-2027 Strategic Plan, focusing on meeting the demands of the present while anticipating the needs of the future.
We made a small but important step toward truth and reconciliation with Indigenous Peoples by creating the Indigenous Advisory Group. I look forward to the advice this Group can offer the Public Sector Accounting Board (PSAB) with respect to improving how Public Sector Accounting Standards (PSAS) and the standard-setting process serve Indigenous Peoples and their communities.
We approved and issued the first Exposure Draft, “Tangible Assets, Proposed Amendments to Section PS 3150,” in relation to our Government Not-for-Profit (GNFP) Strategy. This Exposure Draft proposes incorporating the PS 4200 series of standards on capital assets and collections directly into existing PSAS with potential customizations. This was promised in the GNFP Strategy implementation plan we approved last year. We also continued to review the extensive feedback to the Exposure Draft, “Employee Benefits, Proposed Section PS 3250.”
We continued to implement our International Strategy in two ways. First, we increased awareness among interested and affected parties of the work being done by the International Public Sector Accounting Standards Board (IPSASB). Second, we shared Canadian perspectives with respect to IPSASB’s work with the Chair, the Canadian member, and the staff of IPSASB. We also created the Technical Advisory Group to assist PSAB with its review of IPSASB consultation documents.
In 2023, we launched a new standard-setting project on Intangible Assets. As outlined in our International Strategy, this project will use and adapt the principles of IPSAS 31, Intangible Assets. And, as promised in our Strategic Plan, we are anticipating the needs of the future into the project by incorporating the issue of cloud computing. Something raised by interested and affected parties as being of high importance to the scope of PSAS.
Finally, this past year saw advancements in respect of sustainability standard-setting with the formation of the new Canadian Sustainability Standards Board and the initiation of a new sustainability standards project by the IPSASB. Further work was also undertaken with respect to the recommendations from the Independent Review Committee on Standard Setting in Canada (IRCSS). The IRCSS’s final report made recommendations in the areas of governance and structure for establishing Canadian accounting and assurance standards, including sustainability standards. In this context, PSAB will continue to collaborate with interested and affected parties to ensure the continued relevance of these standards and recommendations.
In closing, I continue to offer my deepest thanks to staff, volunteers, and contributors for all their efforts to support our standard-setting processes. It’s a true testament to their dedication and belief in the importance of our mission to serve in the public interest. Thanks to them, we have been able to accomplish a lot this past year.

Clyde MacLellan, FCPA, FCA
Chair, PSAB

Strategies

Conceptual Framework and Reporting Model

Since PSAB approved the Conceptual Framework and Reporting Model in 2022, we conducted significant outreach efforts to promote and socialize both documents at the Public Sector Accounting conference and many others throughout the year. To help educate and support interested and affected parties, we developed various resources for the Conceptual Framework and the Reporting Model, and delivered PSAB’s New Conceptual Framework for Financial Reporting in the Canadian Public Sector and PSAB’s New Reporting Model (Section PS 1202, Financial Statement Presentation) webinars.

International Strategy

We continued investing in our International Strategy, which came into effect in April 2021. In our strategy’s third year of implementation, we continued to strengthen our briefing meetings with the Canadian IPSASB member by providing insights into issues important to the Canadian public sector. We also finalized the Technical Advisory Group membership. During its November 2023 inaugural meeting, the Group provided insightful feedback for consideration in our response letter to IPSASB’s Strategy and Work Plan Consultation Paper.

By the Numbers

Read about PSAB’s communications and outreach activities this year, including key statistics.

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Projects

Employee Benefits

As a result of the significant amount of feedback received on the project’s first Exposure Draft, “Employee Benefits, Proposed Section PS 3251,” we spent time evaluating the different options. To ensure that your feedback is thoroughly examined and that final decisions serve the Canadian public interest, we have amended the project’s timeline.

Government Not-for-Profit (GNFP): Capital Assets

As part of the first technical project under our GNFP Strategy, we have approved and issued the Exposure Draft, “Tangible Capital Assets, Proposed Amendments to Section PS 3150.” In developing this Exposure Draft, we considered the GNFP Advisory Committee’s feedback. To support this Exposure Draft, we developed an In Brief document and conducted a webinar to provide additional educational resources to our interested and affected parties.

Intangibles

In September 2023, we approved the Intangible Assets project, expanding the scope to include developing an accounting guideline that addresses cloud computing arrangements, based on your feedback. The project plan adopts a staggered approach: an intangible asset standard will be developed first then a cloud computing accounting guideline will be developed second.

CPA Canada Public Sector Accounting (PSA) Handbook Improvements

In August 2022, we issued the Exposure Draft, “2022-2023 Annual Improvements to Public Sector Accounting Standards.” The first phase of proposals was issued in April 2023 and the second phase was issued in February 2024. We deferred issuing the final phase of improvements to consider any amendments arising from the Narrow-scope Amendment: Generally Accepted Accounting Practices (GAAP)_Designation of PSA Handbook Appendices project.

Narrow-scope Amendment: GAAP Designation of PSA Handbook Appendices

In December 2023, we approved the Exposure Draft, “Narrow-scope Amendment: GAAP Designation of PSA Handbook Appendices.” This Exposure Draft proposes to assign a higher level of authority under GAAP to four application guidance PSA Handbook Appendices.

PSAB Future Work Plan Consultation

In 2022, we issued the Consultation Paper, “PSAB Future Work Plan Consultation,” which sought your feedback in determining our project priorities. Based on your responses, we decided that a project to update Statement of Recommended Practices 1, Financial Statement Discussion & Analysis, should be added to PSAB’s 2024-2025 Annual Plan.

Advisory Groups

Public Sector Accounting Discussion Group

The Public Sector Accounting Discussion Group remains an important part of our engagement process. In this public forum, interested and affected parties raise and discuss significant and emerging issues. In 2023, the Group met twice, discussing important topics like inflation, developing a natural resources inventory, scalability of standards, extreme weather impacts on accounting for tangible capital assets, and natural resources.

Indigenous Advisory Group

We are committed to ongoing consultation and cooperation with Indigenous Peoples, consideration of Indigenous perspectives, and alignment with the United Nations Declaration on the Rights of Indigenous Peoples. In support of this, we finalized memberships to the Indigenous Advisory Group, which first met in March 2024. The Group will support PSAB’s commitment to enhancing engagement with Indigenous governments and communities, which is a key objective in our 2022-2027 Strategic Plan. We will seek the Group’s input to further our understanding of the specific needs and challenges faced by Indigenous governments, government business enterprises, and GNFP organizations when applying our standards.

Looking Ahead

We have many important projects and activities on the go in the coming year. Stay up to date on all our projects and activities throughout the year as we make progress on our Annual Plan.

Members

First row L-R: Karen Hogan (member), Clyde MacLellan (Chair), Scott Munro (Vice-Chair), Jennifer Teoh (member)
Second row L-R: Martin Boucher (member), Geoffrey Gatien (member), Maria Berlettano (member), Roch Huppé (member), Heather Taylor (member)
Not pictured: Elham Roushani (member), Ida Chong (member), Tim Schuurman (member), C.J. James (member), France Lessard (member)

Staff

First row L-R: Deven McFadden (Administrative Assistant), Martha Jones Denning (Associate Director), Michael Puskaric (Director), Antonella Risi (Associate Director)
Second row L-R:Stella Lee-Szego (Principal), Iman Sheikh (Principal), Jean-François Trépanier (Vice-President), Riley Turnbull (Principal), Jean Goguen (Principal), Sandra Waterson (Principal), Camila Santos (Principal), Sophia Kasozi (Principal)