This summary of decisions of the Public Sector Accounting Board (PSAB) has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on projects, which might change after further deliberations by PSAB. Decisions to publish exposure draft and Handbook material are final only after a formal ballot process. For more information, please contact Michael Puskaric, Director at PSAB at [email protected].
Intangible Assets
In accordance with its International Strategy, PSAB reviewed proposed modifications to paragraphs in the International Public Sector Accounting Standard (IPSAS) 31, Intangible Assets, which will form part of the exposure draft for the Intangible Assets standard. The Board will continue to discuss proposed modifications for the last third of paragraphs in IPSAS 31 at its upcoming meeting in September 2024.
PSAB also approved the Terms of Reference for its Cloud Computing Task Force. A public call for volunteers will take place this fall.
Employee Benefits
PSAB approved the re-exposure draft, “Employee Benefits, Proposed Section PS 3251,” and its accompanying Basis for Conclusions. The re-exposure draft is expected to be issued in October 2024, with comments due by January 2025.
Given the general support for the main proposals in the July 2021 Exposure Draft, many principles of the re-exposure draft are consistent with what was previously exposed in July 2021. The re-exposure draft proposes several amendments to clarify and simplify the proposals related to the discount rate for defined benefit plans, in response to feedback received from interested and affected parties.
Although proposed amendments are not intended to significantly change the substance of the previously exposed discount rate proposals, PSAB determined that its due process requires a re-exposure of the principles that have been amended. In the re-exposure draft, comments requested from interested and affected parties are limited to specific questions about amended discount rate proposals. The re-exposure draft’s amended discount rate proposals include:
- maintaining a differentiated discount rate approach that prescribes a discount rate for the measurement of a defined benefit pension plan based on an assessment of its funding status;
- removing the discount rate proposals for partially funded pension plans; and
- determining a plan’s funding status based on the preponderance of information available, including the existence of any legislative, regulatory, or contractual funding requirements, as well as the plan’s most recently prepared actuarial valuation for funding purposes.
Once Section PS 3251 is applied, existing Sections PS 3250, Retirement Benefits, and PS 3255, Post-employment Benefits, Compensated Absences and Termination Benefits, will be withdrawn from the CPA Canada Public Sector Accounting Handbook.
Interested and affected parties will be encouraged to respond using Connect.FRASCanada.ca, or by submitting a response letter. The proposed effective date of the proposed Section PS 3251 is fiscal years beginning on or after April 1, 2029.
Monitor the Employee Benefits project page for further updates.
Public Sector Accounting Discussion Group
PSAB received an update on the Public Sector Accounting Discussion Group’s meeting held on June 7, 2024, and reviewed a summary of the discussion. The Group will post the meeting report on its webpage in August 2024.
PSAB also received the Group’s 5-year review. Administrative recommendations, as well as potential improvements for future meetings, were discussed.
Post-implementation Review Assessment
As part of its due process, PSAB is required to assess whether a post-implementation review is needed within two years after the new or amended standard becomes effective. The Board completed its post-implementation review assessment for Section PS 3430, Restructuring Transactions. PSAB reviewed and discussed the assessment, and decided not to conduct post-implementation reviews for the standard.