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].
Government Not-for-Profit (GNFP) Strategy
PSAB approved Option 2 – public sector accounting standards (PSAS) incorporating the PS 4200 series with potential customizations as its GNFP Strategy after careful consideration of the feedback to the consultation papers. The associated Basis for Conclusions document was also approved.
PSAB also provided feedback on a draft GNFP Strategy implementation plan, which the Board expects to approve at its June 2022 meeting. Implementation of the GNFP Strategy will follow the Board’s due process. That is, stakeholders will be consulted on all proposed changes to the PS 4200 series before final amendments to the Public Sector Accounting Handbook are made.
2022-2027 Draft Strategic Plan
After extensive stakeholder consultation, PSAB reviewed and approved its 2022-2027 Strategic Plan. The Board also reviewed and approved its Strategic Plan Feedback Statement, which provides an overview of key feedback from respondents and how PSAB responded in the final document.
The 2022-2027 Strategic Plan and the Feedback Statement will be released in April 2022.
Conceptual Framework
In response to extensive stakeholder feedback, PSAB reviewed and commented on proposed revisions to Chapters 6-10 of the Conceptual Framework, the accompanying Basis for Conclusions document and the consequential amendments.
Specifically, the chapters on which the PSAB reviewed the feedback were:
- Chapter 6, “Financial Statement Objectives”
- Chapter 7, “Financial Statement Information: Qualitative Characteristics and Related Considerations”
- Chapter 8, “Elements of Financial Statements”
- Chapter 9, “Recognition and Measurement in Financial Statements” and
- Chapter 10, “Presentation Concepts for Financial Statements.”
While respondents indicated overall support for the content in these chapters, the discussion focused on comments regarding:
- the budget objective (Chapter 6);
- the terminology (Chapter 7);
- the comparison of asset and liability definitions with those of the International Public Sector Accounting Board (Chapter 8);
- the choice of historical cost as a primary measurement attribute (Chapter 9);
- the development of accounting policies by reporting entities (Chapter 10); and
- the request to remove the recognition exclusions for non-purchased natural resources.
PSAB plans to approve the entire new Conceptual Framework, the consequential amendments arising from the new Conceptual Framework and the accompanying Basis for Conclusions at the June 2022 Board meeting.
PSAB Project Consultation
PSAB reviewed and discussed the proposed consultation, including:
- the consultation’s objective to identify possible future projects for PSAB for resources not required for other approved initiatives;
- the proposed major and minor list of these possible future projects;
- the consultation’s relationship with the approved strategic and annual plan, that these possible future projects are not substitutes for initiatives approved in either plan; and
- the consultation’s communication strategy.
While it agreed with the consultation’s direction, PSAB requested changes to the document to improve clarity with respect to the items listed above.
Other Matters
PSAB approved the 2021-2022 Annual Report, the 2021-2022 Performance Report, and the 2022-2023 Annual Plan. The Annual Plan will be posted publicly.