Assets, Contingent Assets and Contractual Rights

BACKGROUND

Application of the definition and essential characteristics of assets need to be addressed, and guidance on reporting contingent assets and contractual rights need to be developed.

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Assets are defined in Section PS 1000, Financial Statement Concepts. Guidance on applying the definition of assets is limited to identification of three essential characteristics.

The approach of this project will be similar to how the CICA Public Sector Accounting (PSA) Handbook addresses liabilities, contingent liabilities and contractual obligations in Sections PS 3200, PS 3300 and PS 3390 respectively.

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PROJECT NEWS

Basis for Conclusions – Assets – Section PS 3210
June 1, 2015. This document sets out how PSAB reached its conclusions. As well, it sets out significant matters arising from comments received in response to its Exposure Draft and indicates how the Board dealt with the issues raised.

Basis for Conclusions – Contingent Assets – Section PS 3320
June 1, 2015. This document sets out how PSAB reached its conclusions. As well, it sets out significant matters arising from comments received in response to its Exposure Draft and indicates how the Board dealt with the issues raised.

Basis for Conclusions – Contractual Rights – Section PS 3380
June 1, 2015. This document sets out how PSAB reached its conclusions. As well, it sets out significant matters arising from comments received in response to its Exposure Draft and indicates how the Board dealt with the issues raised.

PSAB Decision Summary – March 19-20, 2015
PSAB reviewed responses to its August 2014 Exposure Draft, “Assets, Contingent Assets and Contractual Rights.” There was general support among the respondents for the proposed standards. After discussing the responses and the changes proposed by the task force to address the comments, PSAB approved three new Handbook Sections — Assets, Contingent Assets and Contractual Rights.

Exposure Draft – Assets, Contingent Assets and Contractual Rights
August 1, 2014. PSAB has issued an Exposure Draft that proposes three new standards. Stakeholders are encouraged to submit their comments, on the form provided, by November 3, 2014.

PSAB Decision Summary – June 16-17, 2014
PSAB approved an exposure draft, “Assets, Contingent Assets and Contractual Rights,” after a review of the responses to its Statement of Principles. There was general support to the proposed principles and guidance. Changes made in the exposure draft include:

  • removing from the guidance on control — determining how the economic resource will be used;
  • changing the required disclosure to the types of unrecognized assets from the nature of unrecognized assets; and
  • including factors to consider for determining disclosure of contractual rights.

Statement of Principles – Assets, Contingent Assets and Contractual Rights
August 26, 2013. PSAB has issued a Statement of Principles that proposes additional guidance on the definition of assets, disclosure requirements for assets and definitions of and standards on disclosure requirements for contingent assets and contractual rights. Stakeholders are encouraged to submit their comments, on the form provided, by November 29, 2013.

PSAB Decision Summary – June 12-13, 2013
PSAB approved a statement of principles on assets, contingent assets and contractual rights. The statement of principles proposes:

  • additional guidance on the definition and essential characteristics of assets;
  • disclosure requirements for assets that are not recognized; and
  • definitions of, and disclosure requirements for, contingent assets and contractual rights.

PSAB Decision Summary – March 21-22, 2013
PSAB reviewed a draft statement of principles on assets, contingent assets and contractual rights. PSAB provided feedback on a few key issues and requested the task force to revise the document for further discussion at PSAB’s June 2013 meeting.

PSAB Decision Summary – March 21-23, 2012
PSAB received an update and provided feedback on issues discussed at the task force’s recent meeting. In particular, PSAB considered reporting of contingent assets.

PSAB Decision Summary – December 15-16, 2011
PSAB held its first discussion of issues in the Assets project. It discussed the “power to tax” in relation to the existing definition of an asset to explore and consider the various components of the definition.

The Assets project is intended to provide guidance that will help preparers and auditors in assessing whether an item meets the current definition and consider providing guidance on contingent assets and contractual rights.

PSAB Decision Summary – June 15-16, 2009
PSAB approved a new project on assets. Ranked highly by constituent groups in the 2009 Project Prioritization Survey, the project will provide additional guidance on applying the asset definition in the public sector. The resulting standards are expected to be useful to constituents in understanding and debating what constitutes an asset, contingent asset and contractual right, in a similar manner as did the project on liabilities completed in 2004.

 

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.