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PSAB approved Section PS 3400, Revenue.

Fourth quarter of 2018 – Final standard to be released.


Revenue recognition principles that apply to revenues of governments and government organizations other than government transfers and tax revenue require development.

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The Public Sector Accounting Handbook has two Sections that address two major sources of government revenues, government transfers and tax revenue. Revenues are defined in Section PS 1000, Financial Statement Concepts. Recognition and disclosure of revenues are described in general terms in Section PS 1201, Financial Statement Presentation.

This project will address recognition, measurement and presentation of revenues that are common in the public sector.



PSAB Decision Summary – June 21-22, 2018
The Board approved the final Handbook Section PS 3400, Revenue. This new Section will be effective for fiscal years beginning on or after April 1, 2022. Earlier adoption is permitted. Watch for In Brief articles and a podcast to help explain this new Section.

PSAB Decision Summary – March 22-23, 2018
The Board received a project update from the Task Force Chair and discussed the key issues raised from responses to the Exposure Draft, “Revenue, Proposed Section PS 3400.” The Board provided feedback to the Task Force’s recommendations for addressing the issues raised in the responses. The Board expects to approve a final standard in June 2018.

PSAB Decision Summary – December 14-15, 2017
The Board received a high-level summary of responses to the Exposure Draft, “Revenue, Proposed Section PS 3400.” It gave the Task Force feedback on alternatives to address some of the key issues raised in the responses. The Board asked the Task Force to give a status update on progress at its March 2018 meeting.

PSAB Exposure Draft – Revenue, Proposed Section PS 3400
May 1, 2017. PSAB has issued an Exposure Draft that proposes a framework describing two categories of revenue – exchange and unilateral. Stakeholders are encouraged to submit their comments, on the form provided, by August 15, 2017.

Webinar – Explore PSAB’s Exposure Draft on Revenue
April 5, 2017. Tune in to this webinar on June 26, 2017 (English) or June 27, 2017 (French) to learn about PSAB’s new Exposure Draft on revenue. We outline proposals regarding recognition, measurement, and disclosure of revenue.

PSAB Decision Summary – December 15-16, 2016
PSAB approved an Exposure Draft, “Revenue,” subject to drafting changes and a written ballot in early 2017.

PSAB Decision Summary – September 26-27, 2016
PSAB considered key principles related to developing an exposure draft and provided feedback to the task force. PSAB expects to review an exposure draft at its December 2016 meeting.

PSAB Decision Summary – March 23-24, 2016
PSAB received an update on the project, including consideration of the recognition of revenue arising from licences and permits and provided feedback to the task force.

PSAB Decision Summary – March 19-20, 2015
PSAB reviewed an issues paper on performance obligations and discussed an approach recommended by the task force.

PSAB Decision Summary – December 15-16, 2014
PSAB received an update from staff on the discussions at the past two task force meetings, including the key issues identified by respondents to its Statement of Principles, “Revenue,” that are being discussed and deliberated.

PSAB Decision Summary – March 20-21, 2014
PSAB discussed issues identified by staff based on a preliminary review of responses to its Statement of Principles. PSAB noted that further research on these issues will be required. The project timeline will be extended as a result.

Webinar – When Is It Revenue?
September 24, 2013. Tune in to this webinar on October 2, 2013 (English) and October 16, 2013 (French) to learn about PSAB’s recently issued Statement of Principles on revenue. PSAB is proposing a single framework to categorize revenues to enhance the consistency of revenue recognition and its measurement.

Statement of Principles – Revenue
August 29, 2013. PSAB has issued a Statement of Principles containing proposals that will affect the reporting of a broad range of revenues. Stakeholders are encouraged to submit their comments, on the form provided, by February 3, 2014.

PSAB Decision Summary – June 12-13, 2013
PSAB approved a statement of principles on revenue after considering additional information it requested at the March 2013 meeting. The statement of principles proposes a framework for addressing the accounting and reporting of many forms of public sector revenue.

It proposes classifying revenue associated with promises of goods and services as exchange revenue. Public sector entities would identify the performance obligations associated with the goods or services that they have promised to provide. Revenue would be recognized as each performance obligation is satisfied.

Revenue that does not associate with a specific public service or benefit to the payor would be classified as unilateral revenue, unless it is a voluntary contribution. Unilateral revenue would be recognized when there is the authority and an event that establishes a right to the revenue.

The statement of principles also addresses related reporting issues and proposes general disclosure requirements.

PSAB Decision Summary – March 21-22, 2013
PSAB reviewed a draft statement of principles. Given the unique nature of and the different circumstances that give rise to public sector revenues, PSAB requested that additional information be presented at its June 2013 meeting prior to further consideration of the proposed principles.

PSAB Decision Summary – September 29-30, 2011
PSAB approved an amended project proposal on revenues. The Board agreed that the need for the project is still compelling. It also agreed with the nature and extent of the issues to be addressed, the composition of the task force, the extent of the resources to be allocated to the project, the associated communications plan and the proposed timing.

The existing guidance in the PSA Handbook addressing the application of the definition of revenues is quite limited, and public sector entities have many revenue sources beyond those covered in detailed standards in the PSA Handbook. PSAB has not initiated the project to review its current standards; rather it aims to put in place overarching guidance to address when revenues are recognized, and how they are measured and presented in financial statements.

While the work of other standard setters will serve as a resource, PSAB has determined that specific issues need to be deliberated as public sector entities:

  • receive certain types of revenue derived from granting a right or privilege that only a government can authorize;
  • levy fines and penalties under the authority of legislation; and
  • often price goods or services with the aim of promoting access rather than to maximize the economic return.

PSAB Decision Summary – June 23-24, 2011
PSAB asked staff to prepare an amended project proposal and a related issues paper for approval at a future meeting.  As originally conceived in 2009, the revenue project was intended to focus on revenue from exchange transactions.  Since then, staff has monitored a private sector project undertaken jointly by International Accounting Standards Board and US Financial Accounting Standards Board on “Revenue from Contracts with Customers” as it was expected to be a useful reference.  However, it has become clear that aspects of the financial reporting issues faced by public sector entities are sufficiently different to merit a new approach.

PSAB Decision Summary – June 15-16, 2009
PSAB approved a new project on revenue recognition for exchange transactions. This project was also ranked highly in the Survey. The project will expand on the guidance provided in Financial Statement Presentation, paragraphs PS 1200.077-.081, as it pertains to revenue recognition for exchange transactions and will begin by first considering the developments of the joint IASB and FASB project on revenue recognition of contracts with customers.


Disclaimer: This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.