Message from the Chair – August 2016
PSAB 2015-2016 Annual Report
We issued our 2015-2016 Annual Report, which highlights our 2015-2016 achievements:
- fostering stakeholder understanding of, and feedback to, our Conceptual Framework Task Force’s Consultation Paper 3, “Conceptual Framework Fundamentals and the Reporting Model”;
- completing our post-implementation review of Section PS 3410, Government Transfers;
- continuing to review the appropriateness of our standards for not-for-profit organizations as standards come up for review or revision through our normal processes for all of our stakeholder groups;
- commencing our Employment Benefits project, including establishing a task force and an advisory group;
- initiating our project on public private partnerships; and
- engaging stakeholders in a variety of ways, including through the PSA Discussion Group and other outreach activities.
The Accounting Standards Oversight Council concluded that we had a successful year. We achieved the key objectives set out in our 2015-2016 Work Plan and the long-term outcomes of our 2013-2016 Strategic Plan.
June 2016 PSAB Meeting
We made progress on the following projects and initiatives.
Asset Retirement Obligations
We considered including solid waste closure and post-closure costs within the scope of the project in response to stakeholder feedback to our Statement of Principles, “Retirement Obligations.” We provided feedback to staff on the issue and requested further analysis and examples from the task force.
Concepts Underlying Financial Performance
Our Conceptual Framework Task Force is developing a statement of concepts for a revised conceptual framework. We reviewed a draft chapter related to the qualitative characteristics and related considerations, and provided feedback to our Task Force.
We received an update on the project, including information on the engagement of an advisory group to support our task force in developing an invitation to comment. We considered the approach to the invitation to comment and provided feedback to our task force.
Financial Instruments Standard
Our staff continues to meet with stakeholders across the country to understand the challenges in applying the financial instruments standard. We received a presentation on the issues identified thus far in these meetings. We will consider a report in September 2016.
We considered issuing a Guideline to clarify interpretations of Section PS 3410. After considerable deliberation, we concluded that issuing a Guideline would not be the right approach. Section PS 3410 is a principles-based standard. Issuing a Guideline could be perceived as overriding the standard. A PSAB Matters article will be published that provides an overview of the considerations that led to this conclusion.
Development of Other Projects
Our staff provided an update on the progress of other projects:
- Our Revenue Task Force continues to develop an exposure draft.
- Our Public Private Partnerships Task Force is discussing key issues related to developing a statement of principles.
- Staff is reviewing the responses to our Exposure Draft, “Withdrawal of Disclosure of Related Party Transactions by Not-for-Profit Organizations, Section PS 4260.” We will consider an analysis of the responses at our September 2016 meeting.
International Public Sector Accounting Standards
To keep informed of the activities of the International Public Sector Accounting Board (IPSASB), we received a presentation from their Technical Director regarding IPSASB’s strategic objective, conceptual framework and key projects.
The Chair of the Accounting Standards Board (AcSB) provided an update on current standard-setting activities relating to accounting for rate-regulated entities. The AcSB continues to participate in the International Accounting Standards Board’s (IASB) project on rate-regulated activities in order to ensure that Canadian facts and circumstances are understood and taken into consideration by the IASB. This is a high-priority project for the AcSB, who is actively involved in engaging stakeholders on this matter.
PSA Discussion Group
The Report on the March 3, 2016 meeting of the Public Sector Accounting (PSA) Discussion Group is now online.
The next meeting of the PSA Discussion Group is scheduled for November 18, 2016. Individuals are encouraged to submit issues relating to the application of the PSA Handbook by September 23, 2016.
PSAB Draft Strategic Plan for 2017-2020
We issued an Invitation to Comment, “Draft Strategic Plan for 2017-2020,” which outlines our vision, mission and strategic objectives.
Be sure to let us know your views by responding to our Invitation to Comment by October 28, 2016.
New and Reappointed Board Members
I would like to welcome Guylaine Leclerc, the Auditor General of Quebec, and Ann Marie Miller, the Comptroller General of Newfoundland and Labrador, who were appointed for three-year terms. I would also like to congratulate Bill Matthews who was reappointed for a three-year term.
Rod Monette, FCPA, FCA
Chair, Public Sector Accounting Board