Public Sector Accounting Standards

Statement of Principles, Public Private Partnerships

Summary

The Public Sector Accounting Board proposes, subject to comments received on this Statement of Principles, and following its due process, to expose a proposed new Section on certain public private partnerships.

The Section would apply to public sector entities that base their accounting policies on the CPA Canada Public Sector Accounting Handbook.

Staff Contact(s)

Michael Puskaric, MBA, CPA, CMA

Director, Public Sector Accounting Board

Background

The main features of the proposals in this Statement of Principles are as follows:

  • Public private partnership infrastructure is procured by the public sector entity using a private sector partner who obligations include: a requirement to build, acquire, improve or refurbish; finance; and maintain and/or operate the infrastructure.
  • Public private partnership infrastructure is recognized as an asset where the public sector entity controls the infrastructure.
  • A liability is recognized where the public private partnership gives rise to an obligation to the public sector entity to sacrifice economic benefits.
  • Infrastructure and the associated liability are measured initially at cost.