The Public Sector Accounting Board (PSAB) proposes, subject to comments received following exposure, to amend Section PS 3150, Tangible Capital Assets, in the CPA Canada Public Sector Accounting (PSA) Handbook as set out in this Exposure Draft. These amendments are a result of the review of Section PS 4230, Capital Assets Held by Not-for-Profit Organizations, and Section PS 4240, Collections Held by Not-for-Profit Organizations, as part of its GNFP Strategy implementation.
For government not-for-profit organizations currently applying the PS 4200 series, as a result of proposed amendments to Section PS 3150, Sections PS 4230 and PS 4240 will no longer apply once an entity applies Section PS 3150.
Our Exposure Draft includes proposals that:
- Amend the definition of “tangible capital asset.”
- Add guidance to identify a “collection.”
- Add disclosures requirements to convey the importance of works of art, historical treasures, and collections.
- Add guidance to clarify the accounting treatment for situations when a tangible capital asset is purchased at substantially below fair value.
- Add guidance to clarify the accounting treatment for contributed materials and labour in determining the cost of a constructed tangible capital asset.
The proposals would apply for annual periods beginning on or after April 1, 2029, with earlier application permitted.