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: Capital Assets
PSAB reviewed and discussed the feedback received to the proposals in the Exposure Draft, “Tangible Capital Assets, Proposed Amendments to Section PS 3150.” The Board considered the Government Not-for-Profit Advisory Committee’s recommendations to address comments from interested and affected parties and feedback from the Indigenous Advisory Group. PSAB directed staff to further refine some of the amendments to Section PS 3150, Tangible Capital Assets, related to works of art, historical treasures, and/or collections before its final approval planned for December 2024.
Intangible Assets
In accordance with its International Strategy, PSAB reviewed proposed modifications to various paragraphs in the International Public Sector Accounting Standard (IPSAS) 31, Intangible Assets, which will form part of the exposure draft for its intangible assets standard. The Board supported the inclusion of limited impairment guidance for intangible assets within the standard. The Board discussed proposed modifications to transitional provisions and the standard’s proposed effective date. The proposed intangible assets Exposure Draft , as well as the accompanying Basis for Conclusions and Consequential Amendments, is planned to be approved at the upcoming meeting in December 2024.
IPSASB Update and Response to Exposure Draft 90
In support of its International Strategy, PSAB will submit a response letter to the International Public Sector Accounting Standards Board’s (IPSASB) Exposure Draft 90, “Amendments to IPSAS as a Result of the Application of IPSAS 46, Measurement.” The Board reviewed, discussed, and approved its response letter, subject to some recommended updates. The specific matters for comment related to the use of current operational value as a subsequent measurement basis for inventories, intangible assets PSAB’s response letter will be shared publicly by IPSASB in accordance with its due processes subsequent to the comment deadline of November 29, 2024.
GAAP Designation of PSA Handbook Appendices
PSAB approved the following proposals that were recommended as part of the Exposure Draft, “Narrow-scope Amendment: GAAP Designation of PSA Handbook Appendices”:
- Elevate the level of generally accepted accounting principles (GAAP) designation, from level (iii) to level (i), for four CPA Canada Public Sector Accounting (PSA) Handbook appendices:
- Appendix A to Section PS 3400, Revenue;
- Appendix B to Section PS 3410, Government Transfers;
- Appendix A to Section PS 3450, Financial Instruments; and
- Appendix A to Section PS 4270, Disclosure of Allocated Expenses by Not-for-Profit Organizations.
- Amend the decision tree in Appendix B to Public Sector Guideline (PSG) 2, Leased Tangible Capital Assets, removing an outdated cross-reference into Section 3065, Leases, in former Part V of the CPA Canada Handbook. Guidance has been added to PSG-2 that reflects the accounting required by former Part V for lessee accounting for operating leases.
The proposals are expected to be published in the February 2025 PSA Handbook release, and will be effective for fiscal years beginning on or after April 1, 2026.
Indigenous Advisory Group Update
PSAB received an update on the Indigenous Advisory Group’s meeting held on September 23-24, 2024. The Indigenous Advisory Group approved its Terms of Reference and provided Indigenous perspectives and insights on the draft proposals for the intangible assets exposure draft, and feedback on the Exposure Draft, “Tangible Capital Assets, Proposed Amendments to Section PS 3150.”