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.
Standards for Public Sector Entities
Conceptual Framework and Reporting Model
PSAB reviewed the following:
- the exposure draft for the proposed conceptual framework and the accompanying basis for conclusions document; and
- the exposure draft for the proposed revised reporting model (i.e., a proposed revised financial statement presentation standard) and the accompanying basis for conclusions document.
The Board provided its feedback to the Concepts Underlying Financial Performance Task Force for consideration.
PSAB will receive the revised documents at its September 2020 meeting. The Board will also receive an update on the development of two exposure drafts for proposed consequential amendments (one related to the proposed conceptual framework and another related to the proposed revised reporting model).
Purchased Intangibles
PSAB reviewed the responses to the November 2019 Exposure Draft, “Purchased Intangibles: Narrow-scope Amendments,” and the analysis of responses. Most respondents supported recognizing purchased intangibles in financial statements. However, comments included:
- suggestions for adding clarifications or basic accounting guidance,
- requests for a full intangibles project.
The Board considered various options to respond to the comments within the narrow-scope amendment mandate of the project.
PSAB asked staff to draft a Public Sector Guideline as interim guidance to clarify the changes proposed in the Exposure Draft to Section PS 1000, Financial Statement Concepts, Section PS 1100, Financial Statement Objectives, and Section PS 1201, Financial Statement Presentation. The Board expects to approve the CPA Canada Public Sector Accounting Handbook material in fall 2020.
Other Matters
PSAB’s Response to COVID-19
Over the last several months, the COVID-19 pandemic significantly disrupted the ongoing business and activities of many public sector organizations. PSAB reviewed possible options to respond to the COVID-19 pandemic and approved:
- deferring the effective dates of all upcoming standards by one year;
- extending the current Strategic Plan by one year;
- deferring the development of the upcoming Strategic Plan by one year; and
- issuing non-authoritative guidance on the effects of COVID-19.