Exposure Draft, Public Private Partnerships


The main features of the Exposure Draft are as follows:

  • Public private partnership infrastructure is procured by the public sector entity using a private sector partner that is obligated to design, build, acquire or better; finance; and operate and/or maintain the infrastructure.
  • Public private partnership infrastructure is recognized as an asset when the public sector entity acquires control of the infrastructure. A liability is recognized when the public private partnership recognizes an asset. The liability recognized may be a financial liability, a performance obligation or a combination of both.
  • An infrastructure asset acquired in an exchange transaction is recorded at its cost, which should be equal to the infrastructure asset’s fair value on the initial measurement date. The liability is also initially measured at the cost of the infrastructure asset.
  • Subsequent measurement of the infrastructure asset is based on the asset cost amortized in a rational and systematic manner over the useful life of the asset.
  • Subsequent measurement of the financial liability would reflect the public sector entity’s payment to settle the liability as well as the finance charges being passed on to the public sector entity through the public private partnership agreement.
  • For the subsequent measurement of the performance obligations, the revenues should be recognized and the liability reduced in accordance with the substance of the public private partnership agreement.

Staff Contact(s)

Michael Puskaric, MBA, CPA, CMA

Director, Public Sector Accounting Board

How to reply

Respond to Public Private Partnerships by February 29, 2020 submitting a comment letter (in a Word file)


There are a wide variety of practices in use across Canada for accounting for public private partnerships. PSAB undertook this project to enhance the consistency and comparability of information reported in financial statements for infrastructure acquired through public private partnership procurement methods.