Chair Message
This past year was the first full year of our new 2022-2027 Strategic Plan. This plan is built on the previous strategic plan and outlines the future direction of PSAB’s work for the next five years. Specifically, our new Strategic Plan is focused on meeting the demands of the present while anticipating the needs of the future. To keep pace with rapid change, we have outlined opportunities to build speed, adaptability, and efficiency into the standard-setting process, and to leverage and adapt international standards to Canada when appropriate. We will work to strengthen relationships with international standard setters. To ensure Canada’s public standards are relevant and forward-looking, we will monitor initiatives to encourage and support sustainability reporting, while initiating specific actions to enhance our relationships with interested and affected parties.
Over the past year, I’m pleased with our progress in several aspects of this transition. Specifically, we approved a new Conceptual Framework and Reporting Model, which represents a major achievement that sets the foundation for future public sector accounting standards. Last year, we approved our Government Not-for-Profit (GNFP) Strategy to incorporate the PS 4200 series into existing PSAS with potential customizations. This year, we approved an implementation plan to begin incorporating the PS 4200 series directly into public sector accounting standards, starting with standards for capital assets. We advanced the implementation of our International Strategy by increasing awareness amongst interested and affected parties of the work being done by the International Public Sector Accounting Standards Board (IPSASB), by engaging with the Chair, the Canadian member, and the staff of IPSASB to ensure they were aware of the Canadian context to their work. We also engaged in robust outreach with Canadians on the International Public Sector Accounting Board’s consultation papers related to Sustainability and Natural Resources, submitting responses reflective of your input. Additionally, we’ve continued to review the extensive feedback received in respect of the Exposure Draft on Employee Benefits.
This past year also saw the release of the report from Canada’s Independent Review Committee on Standard Setting in Canada. The report provides recommendations in the areas of governance and structure for establishing Canadian accounting and assurance standards, including sustainability standards. Within this context, PSAB will work with the various oversight councils, to whom the report is addressed, to ensure its continued relevance to interested and affected parties.
In closing, I continue to offer my deepest thanks to staff, volunteers and contributors for all their efforts to support our standard-setting processes. It’s a true testament to their dedication and belief in the importance of our mission to serve in the public interest. Thanks to them, we have been able to accomplish a lot this past year.
Clyde MacLellan, FCPA, FCA
Chair, PSAB
Strategies
Conceptual Framework and Reporting Model
We achieved a significant milestone for PSAB with the approval of the new Conceptual Framework in June 2022, and issuance on December 1, 2022. The new Conceptual Framework provides additional clarity and guidance to interested and affected parties, building on the previous Conceptual Framework to strengthen the foundation for public sector financial reporting.
With the accompanying approval of the revised Reporting Model in March 2023, these high priority PSAB projects have been brought to a successful close. We will continue our work to provide educational outreach to interested and affected parties about these projects in 2023-2024.
International Strategy
We have continued investing in our International Strategy, which came into effect in April 2021. In our strategy’s second year of implementation, we strengthened our briefing meetings with the Canadian IPSASB member, providing insight into issues important to the Canadian public sector. We conducted extensive outreach activities to hear your views regarding the International Public Sector Accounting Board (IPSASB) Natural Resources and Sustainability Consultation Papers, and drafted response letters that reflected the Canadian public interest on these important issues. Staff response letters were submitted for two additional IPSASB Exposure Drafts, in alignment with our objective to influence international standards in the Canadian public interest. We released a five session On-Demand workshop, providing an overview of the International Public Sector Accounting Standards Board and an introduction to International Public Sector Accounting Standards.
Government Not-for-Profit Organizations (GNFPOs)
Last year, we approved our GNFP Strategy to incorporate the PS 4200 series into existing PSAS, with potential customizations. In June 2022, we approved the implementation plan for this strategy, outlining the initial standards for consideration. We have established an advisory committee for GNFPOs, to inform our decision-making as we action our decision to incorporate the PS 4200 series into PSAS, beginning with a technical project focused on capital assets held by not-for-profit organizations.