Public Sector Accounting Standards

Exposure Draft, Financial Instruments – Narrow Scope Amendments

Summary

The Public Sector Accounting Board (PSAB) proposes, subject to comments received following exposure, to amend FINANCIAL INSTRUMENTS, Section PS 3450, in the CPA Canada Public Sector (PSA) Accounting Handbook.

The Basis for Conclusions, which accompanies this Exposure Draft, addresses alternative views and the Board position, with its reasons.

Main features of the Exposure Draft

Narrow-scope amendments are being proposed to:

  • change the accounting treatment for debt buybacks;
  • clarify aspects of the Section’s application; and
  • add new guidance to the transitional provisions.

Staff Contact(s)

Michael Puskaric, MBA, CPA, CMA

Director, Public Sector Accounting Board

How to reply

Respond to the Exposure Draft, Financial Instruments – Narrow Scope Amendments  by submitting a comment letter (in a Word file) by May 1, 2019.

Background

The proposed revision to the treatment of debt buybacks will affect how the annual surplus/deficit is calculated. This is because transactions that previously would have been considered extinguishments will no longer be treated as such. This will also affect the presentation of assets and liabilities on the balance sheet. It will not affect net debt.