PSAB is developing a Canadian public sector accounting standard for intangible assets based on feedback from PSAB’s 2022 Work Plan Consultation. The new intangible assets standard will replace PUBLIC SECTOR GUIDELINE (PSG),8, Purchased Intangibles.
This standard will provide foundational guidance on intangible assets including the definition, recognition, measurement, and required disclosures of intangible assets. It will also allow PSAB to fill an existing gap in the CPA Canada Public Sector Accounting (PSA) Handbook for guidance on purchased intangibles, developed intangibles, and software assets not integral to computer hardware, within one standard.
As part of this project, PSAB will also develop guidance related to Cloud Computing Arrangements in the Canadian Public Sector.
This project will be the first official application of PSAB’s International Strategy, which was effective as of April 1, 2021. In developing the intangible assets standard, the principles of IPSAS 31, Intangible Assets, will be considered for modification in accordance with PSAB’s Criteria for Modifying and Reviewing IPSAS principles which state that PSAB will make amendments to an IPSAS principle if:
- it is contrary to PSAB’s Conceptual Framework; and
- PSAB finds the principle is not appropriate for application in Canada based on the Canadian public interest.