Page 5 - Public Sector Accounting Board 2014/15 Annual Report
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About the Public Sector Accounting

The Public Sector Accounting Board (PSAB) was formed in 1981 after consultation with various
federal and provincial government stakeholders. These stakeholders saw the need for a
national, comparable and consistent approach to financial reporting by governments in Canada.
Initially, PSAB focused its standard-setting efforts on these governments. Subsequently,
PSAB undertook setting standards for local governments and, at a later date, government

Nature of Standard Setting in the Public Sector

Unlike standard setting in the private sector, there are no legal requirements approved by others
requiring senior governments to follow the standards issued by PSAB. However, they have
chosen to comply with them. Organizations of these governments are generally required by
their respective government to adopt standards issued by PSAB. Local governments and their
organizations are generally required under provincial legislation or regulation to follow
the standards issued by PSAB.


PSAB establishes accounting standards and other guidance for governments and their
organizations. It does this to enhance the information available for decision-making and for
improving the accountability of these public sector entities.


PSAB’s mission is to contribute to supporting informed decision-making and accountability
by maintaining a framework that provides a basis for high-quality information about
organizational performance reported by Canadian public sector entities.
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