PSAB Decision Summary – December 12-13, 2019

This summary of decisions of the Public Sector Accounting Board (PSAB) has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on projects, which might change after further deliberations by PSAB. Decisions to publish exposure draft and Handbook material are final only after a formal ballot process.

Standards for Public Sector Entities

2019-2020 Annual Improvements

PSAB approved the Exposure Draft, “2019-2020 Annual Improvements to Public Sector Accounting Standards.” The Exposure Draft reflects proposed amendments to:

  • clarify transitional provisions for consequential amendments;
  • update disclosure requirements in individual standards relating to contractual rights; and
  • replace the term “contingency” with “contingent assets and contingent liabilities”.

    The Board will issue the Exposure Draft in January 2020, with a 60-day comment period.

Conceptual Framework and Reporting Model

PSAB reviewed the feedback related to the following chapters of the Statement of Concepts, “A Revised Conceptual Framework for the Canadian Public Sector":

  • Chapter 8, Elements of Financial Statements; and
  • Chapter 10, Presentation Concepts. 

Some of the feedback received from respondents to the Statement of Concepts related to:

  • the support for the element definitions and the presentation concepts;
  • encouraging PSAB to reconsider its position on deferred inflows and deferred outflows, and “other resources” and “other obligations” from the Canadian reporting model; and
  • how the exclusions included in the “government” definition create confusion. 

PSAB also reviewed:

  • revised Chapters 8 and 10 that would be part of the exposure draft for a revised conceptual framework;
  • the accompanying basis for conclusions document related to Chapters 8 and 10; and
  • the feedback related to the proposed definition of “government”

and provided their feedback to the Task Force for consideration. 

The Board will receive an update on the exposure draft’s development at the March 2020 Board meeting.

Financial Instruments – Narrow-scope Amendments

PSAB approved the following:

  • Financial Instruments: Narrow-scope Amendments, final Handbook amendments. The amendments include changes to the accounting treatment of bond repurchase transactions, transitional provisions, and other minor improvements, and will be reflected in the CPA Handbook in the spring of 2020.
  • Exposure Draft, “Financial Instruments: Federal Government Narrow-scope Amendments.” The Exposure Draft will be published early in 2020, with a 60-day comment period.

Government Not-for-Profit Strategy

PSAB received a high-level summary of the responses to the Consultation Paper, “Government Not-for-Profit”. The Board will be provided an update on the development of a Government Not-for-Profit Strategy at its March 2020 meeting.

International Strategy

PSAB received an update on the International Strategy project and the outreach activities conducted in support of the second International Strategy Consultation Paper.

PSAB reviewed the analysis of stakeholder responses to Consultation Paper 2. The Board expects to be in a position to make a decision on its international strategy at its March 2020 meeting.

PSAB Governance

PSAB’s Interim Performance Report

PSAB reviewed and provided feedback on the draft 2019-2020 Interim Performance Report. It will be presented for approval at the Board’s March 2020 meeting.

PSAB Planning

PSAB reviewed and provided feedback on the draft 2020-2021 Annual Plan and Risk Assessment. It will be presented for approval at the Board’s March 2020 meeting.

Research Activities

PSAB reviewed the results of staff research work related to not-for-profit organizations in the public and private sectors. The research was performed jointly with the Accounting Standards Board. These results will inform the Board’s decisions on its Government Not-for-Profit strategy.