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PSAB

Statement of Operating Procedures

(Revised and approved by the Public Sector Accounting Board on December 7, 2023)

Introduction

  1. The Statement of Operating Procedures describes the procedures the Public Sector Accounting Board (PSAB) applies in fulfilling its responsibilities as defined in its Terms of Reference, and subject to such input as the Oversight Council may provide. PSAB has developed and adopted these procedures in accordance with its Terms of Reference. See Appendix A of the Due Process Manual for a glossary of key terms.

Strategic and Operating Plans

  1. PSAB develops long-term strategic plans and applies such plans in working to achieve the objectives and fulfill the responsibilities in its Terms of Reference. Strategic plans are developed through due process and in consultation with interested and affected parties and the Oversight Council. Strategic plans address the differing needs of the different categories of reporting entities for which PSAB establishes financial reporting standards and other guidance.
       
  2. PSAB’s strategic plan forms the basis for the annual operating plans to be submitted to the Oversight Council and the annual performance reports on which the Oversight Council bases its assessment of PSAB’s performance. Annual operating plans specify how PSAB’s strategy for each category of reporting entity will be carried out for that year. PSAB’s plans incorporate a basis for assessing whether its activities have been successful in achieving desired outcomes.
       
  3. PSAB reports annually to the Oversight Council on its performance in fulfilling its mission, meeting its objectives, and carrying out its strategic and annual operating plans.
     
  4. PSAB follows an ongoing risk management process in developing and carrying out strategic and annual operating plans.

Meetings

  1. PSAB normally meets at least four times per year and schedules such additional meetings as are necessary to achieve its objectives.
       
  2. PSAB may hold meetings in person, virtually, or a hybrid of in person and virtually. Arrangements may be made for a member to participate in any meeting virtually.
      
  3. A quorum at any PSAB meeting is two-thirds of all members.
      
  4. PSAB normally conducts its meetings in private but may, at its discretion, invite non-members to attend and participate in its discussions or open its discussions to the public.

Voting

  1. Each member of PSAB has one vote, except the Chair who may receive an additional vote to break a tie.
     
  2. PSAB members serve in their personal capacity. Accordingly, substitutions are not accepted. PSAB members vote according to their own beliefs, experience, and judgment based on the information they have and the discussions they have taken part in, and not according to the views of any firm, organization, or constituency with which they are associated.
     
  3. Individual votes are kept confidential.
      
  4. An affirmative vote of two-thirds of all PSAB members is required for the following decisions:
    (a)    To approve a project proposal or to approve the discontinuance of a project.
    (b) To approve for issuance a consultation paper, post-implementation review document or other similar due process document.
    (c) To forgo exposure of a proposed standard, in unusual circumstances and for a stated reason or reasons.
    (d) To forgo re-exposure of a proposed standard that has been significantly changed as a result of exposure draft comments, for a stated reason(s).
    (e) To release an exposure draft or approve a standard, including a revision to an existing standard and a consequential amendment to another standard.
    (f) To issue a Basis for Conclusions document.
       
  5. An affirmative vote of a simple majority of all PSAB members is required for all other decisions, including the following:
    (a)    To adopt a position on a specific issue within a consultation paper, an exposure draft, or a standard.
    (b) To determine whether a proposed standard has been significantly changed as a result of exposure draft comments.
         
  6. Voting can be done by a show of hands or by a written ballot process. All decisions to issue, amend, or withdraw a standard are confirmed by a written ballot. The written ballot process requires that the member complete a ballot form that documents their approval, abstention, or non-approval of a decision. Ballot forms constitute proper evidence of the decisions in such circumstances. 
       
  7. All votes taken in PSAB meetings are documented in the minutes. The minutes constitute proper evidence of PSAB’s decisions.
      
  8. Members present for the discussion of an issue but absent when a vote is taken in a meeting may vote subsequently using email. Both the attendance sheet validating a member’s attendance at the meeting where the issue was discussed and a subsequent email noting the member’s vote, together constitute proper evidence for a subsequent vote.
     
  9. If a vote is required by members outside of a meeting, a written ballot process may be carried out by email.

Due Process

  1. PSAB adopts and applies a Standard-setting Due Process Manual that establishes a set of rigorous procedures for developing and adopting financial reporting standards and other guidance. PSAB’s Due Process Manual is available to the public and is reviewed no later than three years after the completion of the previous review. In developing financial reporting standards and other guidance, PSAB undertakes research, discussions, and public consultations to maintain the objectivity of the process and the quality of the output.

  2. PSAB’s policy is to maintain a public file of key documents for completed standard-setting and recommended practices projects.

PSAB Committees

  1. PSAB may create other groups (committees, task forces, advisory groups, or other groups), including committees of its own members, to assist it in carrying out its work. PSAB has not been given the ability under its Terms of Reference to delegate its decision-making authority to other groups and, therefore, may create such groups with a mandate only to provide advice.
       
  2. PSAB provides Terms of Reference to all groups affiliated with it. Among other matters, such Terms of Reference specify:
    (a)    the purpose, objectives and responsibilities of the group; and
    (b) the size and composition of membership, including the desired mix of members’ backgrounds, and the terms of appointment.
         
  3. PSAB approves the appointment of the Chairs of all groups it creates.
       
  4. Appointments of members of all groups affiliated with PSAB are approved by the Chair of PSAB and the Director, Public Sector Accounting Standards in consultation with the Chair of the group.

Staff Support

  1. PSAB and all its committees and affiliated groups are supported by the Director, Public Sector Accounting Standards and such other staff as required.

Funding

  1. CPA Canada provides funding, staff, and other resources to support an independent standard-setting process.

Communications

  1. PSAB informs the general public and other interested and affected parties about its activities.
      
  2. In fulfilling its commitment to the respectful inclusion and participation of Indigenous Peoples in public sector accounting standard-setting, PSAB will develop consultative processes with Indigenous Peoples that are tailored to their unique needs and are consistent with their self-determination objectives and free, prior, and informed consent. Communications will form a part of these processes. This will be an evolving and iterative approach and the Board will update and amend it as appropriate and in consultation with Indigenous Peoples.

  3. PSAB publishes its meeting dates, decision summaries, and other project-related information, strategic and annual operating plans, and annual performance reports. The principal means of communication is through the posting of information and documents on PSAB’s website.

  4. PSAB develops and implements a communications plan for its projects setting out goals and objectives, opportunities and challenges, target audiences, available media, and specific actions to improve communications with key interested and affected parties.

Bilingualism

  1. PSAB’s working language is English but publishes materials both English and French. PSAB receives and considers comment letters in either language on its published proposals. PSAB also conducts events such as roundtables and webinars, when possible, in both languages to seek feedback from interested and affected parties.
       
  2. All financial reporting standards and other guidance, and exposure drafts are published simultaneously in English and French.
       
  3. PSAB applies a policy for the translation of published materials to ensure accessibility of materials in both Canadian official languages (i.e., English and French).

Operations

  1. PSAB contributes to the development of high-quality, internationally accepted financial reporting standards and other guidance by steps such as:
    (a)    responding to selected invitations to comment on discussion papers and exposure drafts from the International Public Sector Accounting Standards Board (IPSASB);
    (b) assisting Canadian interested and affected parties in communicating with the IPSASB;
    (c) sponsoring and participating in IPSASB roundtables and conferences;
    (d) disseminating information to Canadian interested and affected parties about IPSASB activities;
    (e) identifying qualified Canadians as candidates for membership on IPSASB and its related groups; and
    (f) providing staff support to IPSASB projects and any Canadian member of the IPSASB.
          
  2. PSAB uses its working relationships with international standard setters to ensure that it considers global best practices in developing its financial reporting standards and other guidance.
       
  3. PSAB’s operating year ends on March 31 in each calendar year.

Confidentiality

  1. PSAB’s policy is to keep meeting materials and information confidential unless it decides to release a particular document or information to the public. This policy does not prohibit PSAB members and staff from consulting with interested and affected parties concerning matters discussed in meeting materials. In this connection, they may provide a copy of pertinent PSAB documents to the interested parties, provided those materials remain subject to the requirement for confidentiality and other conditions of PSAB’s policy and it is made clear that they have not necessarily been approved by PSAB.

Liaison with Other Standard Setters

  1. PSAB maintains liaison relationships with other accounting standard setters in support of its objectives, with particular emphasis on relationships with the Accounting Standards Board and IPSASB.

  2. Representatives of PSAB participate in meetings and activities of the Public Sector Standards Setters Forum.

Self-assessment

  1. PSAB’s policy is to conduct an annual self-assessment to identify areas for improvement in operating policies and practices and for reporting to the Oversight Council.