Public Sector Accounting Discussion Group
PSAB received an update from the ’s May 2026 meeting. At its meeting, the Group discussed the classification of assets and liabilities as financial and non-financial under the requirements of Section PS 1202, Financial Statement Presentation, and the International Public Sector Accounting Standards Board (IPSASB)’s Exposure Draft 97, “IPSAS Practice Statement, Making Materiality Judgments.” The meeting report will be published in July 2026.
Annual Improvements (Financial Instruments)
PSAB approved its Exposure Draft, “2026-2027 Annual Improvements,” which focuses on the financial instruments suite of standards and addresses clarifications that interested and affected parties identified through both the Financial Instruments Monitoring and Post-implementation Review Assessment consultation processes.
PSAB expects to publish the Exposure Draft in July 2026.
2027-2032 Strategic Plan
PSAB approved its Consultation Paper, “Founded on Trust, Ready for the Future: Draft 2027-2032 Strategic Plan,” with a continued focus on developing high-quality standards, maintaining and strengthening relationships, and supporting forward-looking accounting and reporting initiatives.
The Consultation Paper will be available for comment in July 2026.
PSAB responses to IPSASB documents for comment
In keeping with its commitment to influence IPSASB’s standard setting, PSAB approved three responses to the IPSASB’s documents for comment:
- Exposure Draft 95, “Improvements to IPSAS Accounting Standards – Volume 10 (ED 95)”;
- IPSASB’s Consultation Paper, “Presentation of Financial Statements”; and
- Exposure Draft 97, “IPSAS Practice Statement, Making Materiality Judgments.”
Read the responses to these documents on PSAB’s international activities webpage.
Derecognition of liabilities – Impact on Section PS 3450, Financial Instruments
In April 2026, IPSASB issued ED 95, proposing several updates, including amendments to International Public Sector Accounting Standard (IPSAS) 41, Financial Instruments. Similar to the amendments the International Accounting Standards Board adopted under IFRS 9, Financial Instruments, the proposed amendments to IPSAS 41 adopt a settlement-date approach for the derecognition of financial liabilities that delays the derecognition of financial liabilities not settled through electronic payments systems. For example, financial liabilities related to outstanding manual cheques would not be derecognized until the cheque has been cashed by the counterparty.
When it met on November 13, 2025, the Public Sector Accounting Discussion Group discussed the impacts that the amendments to IFRS 9 and the proposed amendments to IPSAS 41 would have on public sector entities reporting under Section PS 3450. PSAB subsequently considered these matters and concluded that notwithstanding the changes to IFRS 9 and those proposed under IPSAS 41, because no equivalent amendments have been made to Section PS 3450, there is no change to the current accounting practice. Accordingly, Canadian public sector entities applying Section PS 3450 are not expected to change how they account for the derecognition of financial liabilities.
Cloud Computing Arrangement Guideline
PSAB received a presentation from the Cloud Computing Task Force’s Chair and provided direction to the Task Force on key aspects for developing the guideline on cloud computing arrangements in the Canadian public sector.
PSAB will deliberate the proposed guidance at future meetings, with an exposure draft of the guideline expected in 2027.
Intangible Assets
PSAB reviewed and addressed feedback on its Exposure Draft, “Proposed Section PS 3155, Intangible Assets.” The Board will continue deliberating at upcoming meetings.
The proposed standard is PSAB’s first International Strategy project where an IPSASB standard is adapted for the Canadian public sector in accordance with PSAB’s Criteria for Reviewing and Modifying IPSAS Principles. The draft standard incorporating all recommended amendments will be presented to PSAB for approval in 2027.
Government Not-for-Profit: Contributions and Financial Statement Presentation
PSAB deliberated feedback from interested and affected parties on the consultation survey, Government Not-for-Profit: Contributions and Financial Statement Presentation, and the resulting recommendations from the Government Not-for-Profit Advisory Committee. Specifically, the Board focused on the concerns survey respondents raised with respect to accounting for capital contributions and the presentation of a budget-to-actual comparison on the financial statements. The feedback will inform the development of draft proposals.
PSAB expects to approve an exposure draft and related basis for conclusions in 2027.