The Public Sector Accounting Board (PSAB) proposes, subject to comments received following exposure, to issue Section PS 3155, Intangible Assets.
This Exposure Draft was developed by applying PSAB’s International Strategy and adapts principles from the International Public Sector Accounting Standard (IPSAS) 31, Intangible Assets. PSAB has proposed amendments to IPSAS 31 principles based on the Criteria for Modification defined under its International Strategy. Modifications were considered if IPSAS 31 principles were contrary to PSAB’s proposed Conceptual Framework for Financial Reporting in the Public Sector, or inappropriate for application in Canada based on the Canadian public interest.
Proposed Section PS 3155 will replace Public Sector Guideline 8, Purchased Intangibles, and provide foundational guidance on the accounting for intangible assets. This Exposure Draft provides:
- a definition of “intangible assets” within the CPA Canada Public Sector Accounting Handbook; and
- guidance on recognition, measurement, and required disclosures for intangible assets.
The first key objective of our Intangible Assets project is to work toward this new, comprehensive standard for intangible assets, which would provide clarity and consistency in public sector accounting across Canada. This proposed standard would enhance financial transparency by helping public sector entities account for assets in a rapidly evolving technological world. As such, the proposed Section PS 3155 will also include guidance on purchased intangibles, developed intangibles, and software assets not integral to computer hardware.
The proposals would apply for fiscal years beginning on or after April 1, 2030. Earlier adoption is permitted.