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Public Sector Accounting Standards

Financial Instruments


With the growth and availability of financial instruments, many governments and government organizations use financial instruments to manage their financial exposure such as foreign currency and interest rate risk.

Staff Contact(s)

Michael Puskaric, MBA, CPA, CMA Director, Public Sector Accounting Board

Meeting & event summaries

July 8, 2021 PSAB Decision Summary – June 29, 2021 and July 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.

December 9, 2020 PSAB Decision Summary – December 9, 2020

PSAB approved the following narrow-scope amendments:

  • Financial Instruments, Presentation Narrow-scope Amendments; and
  • Financial Instruments, Foreign Exchange Narrow-scope Amendments.  

These amendments will be effective for fiscal years beginning on or after April 1, 2022.

These amendments will be reflected in the PSA Handbook in spring 2021.

July 3, 2020 PSAB Decision Summary – July 3, 2020

At its recent meeting, the Board discussed the Financial Instruments – Narrow Scope Amendments project and its Basis for Conclusions on its International Strategy decision. Read the Decision Summary for full details.


December 1, 2011 News
December 2011

Other amendments
PSAB approved withdrawal of Section PS 3030, Temporary Investments, new Section PS 3041, Portfolio Investments, and amendments to the PSA Handbook Sections, proposed in the Exposure Draft, “Amendments Resulting from Section PS 3450.”

PSAB also approved the amendments proposed in the Exposure Draft, “Handbook Improvements,” except the proposal to disclose remeasurement gains and losses by segment.

June 1, 2011 News
June 2011

PSAB approved two exposure drafts

  • The main features of the first Exposure Draft, “Amendments Resulting from Section PS 3450,” include the proposed removal of Section PS 3030, Temporary Investments, amendments to Section PS 3040, Portfolio Investments, and related amendments to other Sections as a result of proposed changes to these two Sections.
  • The main features of the second Exposure Draft, “Handbook Improvements,” include proposed amendments to Section PS 2500, Basic Principles of Consolidation, to address transfer of derivatives among entities in a government reporting entity, and proposed amendments to Section PS 2700, Segment Disclosures, to address remeasurement gains and losses; and proposed clarifications in other Sections.

March 1, 2011 News
March 2011

PSAB approved new Section PS 3450, Financial Instruments, and related amendments to existing Section PS 1200, Financial Statement Presentation. The effective date for Section PS 3450 is April 1, 2012 for government organizations and April 1, 2015 for governments. Earlier adoption is permitted. Governments and government organizations adopt Section PS 3450 in the same fiscal year Section PS 2601, Foreign Currency Translation, is adopted.

In view of the Concepts Underlying Financial Performance project, the transition requirements state that PSAB will review the application of this Section for governments by December 31, 2013.


This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.