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.
PSAB received a presentation from the Accounting Standards Board and discussed PSAB’s response to the International Accounting Standards Board’s Exposure Draft, “Regulatory Assets and Regulatory Liabilities.”
PSAB reviewed and discussed updates to the International Activities workplan.
Consultation Paper of IFR4NPO
PSAB approved a response letter to the IFR4NPO Consultation Paper, “International Financial Reporting for Non-Profit Organisations,” issued in January 2021. This is part of the Chartered Institute of Public Finance and Accountancy’s and Humentum’s joint initiative to develop non-authoritative reporting guidance for not-for-profit organizations.
For more information on the Consultation Paper, visit the IFR4NPO website.
Public Sector Accounting Discussion Group
PSAB received an update on the Public Sector Accounting Discussion Group’s membership and the submissions discussed at the Group’s meeting on April 8, 2021.
PSAB received the Financial Instruments Advisory Group’s overview, comprehensive analysis, and recommendation on rate-setting transactions, as part of the Financial Instruments – Narrow-scope Amendments project.
PSAB accepted the Financial Instruments Advisory Group’s recommendation not to proceed with an exposure draft on the accounting for rate-setting transactions. The Board made this decision on the basis that the amendments required to permit such transactions within public sector accounting standards could not be accommodated through the narrow-scope-amendment mandate. The extensive changes required to accommodate rate-setting transactions were inconsistent with the Board’s due process for narrow-scope amendments and could introduce principles inconsistent with previously approved decisions in the development of the financial instruments suite of standards.
This completes the Financial Instruments – Narrow-scope Amendments project prior to its effective date for fiscal years beginning on or after April 1, 2022. PSAB will continue to monitor and review the accounting for the financial instruments suite of standards, including rate-setting and other financial risk management activities. In accordance with its due process, approximately two years after the implementation of these new standards, the Board will assess whether a post-implementation review of the financial instruments suite of standards should be performed.
PSAB approved an additional illustrative example for inclusion in its upcoming Exposure Draft, “Employee Benefits, Proposed Section PS 3251.” The example illustrates accounting treatment specified in the Exposure Draft the Board PSAB approved on March 25, 2021.