To be consistent with the proposals in its Exposure Draft, “Conceptual Framework for Financial Reporting in the Public Sector”, PSAB is proposing consequential amendments that include the withdrawal of the existing conceptual framework and a revision to the definition of “materiality”, as well as amendments to:
- references to the existing conceptual framework in the PSA Handbook;
- the general application standards, LIABILITIES, Section PS 3200, and ASSETS, Section PS 3210;
- REVENUE, Section PS 3400
- the “Introduction to Public Sector Accounting Standards” to recognize the conceptual framework;
- DISCLOSURE OF ACCOUNTING POLICIES, Section PS 2100 to consider emerging technology in displaying information in the notes;
- references to “measurement uncertainty” in particular renaming Section PS 2130, Measurement Uncertainty, to “Section PS 2130, Estimation Uncertainty”, as the standard speaks solely to “estimation uncertainty”;
- references to “service capacity” as service capacity in the proposed Conceptual Framework is being defined to be much broader than it is currently defined in the PSA Handbook; and
- references to “reliability” as this qualitative characteristic is being replaced by “representational faithfulness” in the proposed Conceptual Framework.