PSAB

PSAB Decision Summary – June 20-21, 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

Conceptual Framework and Reporting Model

PSAB reviewed the feedback related to Chapter 1, “Introduction to the Conceptual Framework,” and Chapter 2, “Characteristics of Public Sector Entities,” of the Statement of Concepts, “A Revised Conceptual Framework for the Canadian Public Sector.” Some of the feedback related to:

  • where to communicate Board justification of any future inconsistency between a new or revised standard and the conceptual framework;
  • how the conceptual framework fits within the GAAP hierarchy;
  • how the characteristics of public sector entities apply to government not-for-profit organizations (GNFPOs);
  • the longevity of governments; and
  • other improvements to the description of the characteristics.

The Board also reviewed:

  • the revised Chapters 1 and 2 that would be part of the exposure draft for a revised conceptual framework; and
  • the accompanying basis for conclusions document related to Chapters 1 and 2.

PSAB will receive an update on the development of the exposure draft for a revised conceptual framework at the September 2019 Board meeting.

Public Private Partnership

PSAB reviewed and provided feedback on a preliminary version of the exposure draft. It will be presented for approval at the September 2019 Board meeting.

Employment Benefits

PSAB received an update on the Employment Benefits project and provided feedback on the Task Force’s work on key issues covered in the Invitations to Comment:

PSAB also considered the nature and scope of the project’s next due process document, based on stakeholders’ feedback. The Board agreed that an exposure draft would provide stakeholders with a complete picture of the proposed standard, including application guidance and illustrative examples.

PSAB will be provided with an update on key issues covered in the Invitation to Comment, “Employment Benefits: Non-Traditional Pension Plans” issued in October 2018, at its September 2019 meeting.

2018-2019 Annual Improvements

PSAB approved the final Handbook amendments resulting from the 2018-2019 Annual Improvements. The amendments are effective for fiscal years beginning on or after April 1, 2020, with earlier application permitted.

Research Activities

Not-for-Profit Sector

PSAB provided feedback on staff research work gathering data and analyzing NFPOs in the public and private sectors. Staff is coordinating research that jointly supports the Board and the Accounting Standards Board to better understand the sector, make informed decisions and set priorities.