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Public Sector Accounting Standards

Impairment of Assets Held for Service Potential

Summary

The Public Sector Accounting Board (PSAB) is undertaking the Impairment of Assets Held for Service Potential project to develop a new standard. This project responds to feedback received through PSAB’s Work Plan Consultation, where interested and affected parties identified the need for additional public sector impairment guidance.

Currently, the CPA Canada Public Sector Accounting (PSA) Handbook contains limited guidance on impairment, leading to diversity in practice. The proposed new standard will enhance comparability and support consistent application across public sector entities. It will do so by providing principles-based guidance on identifying, assessing, measuring, and disclosing impairment of assets primarily held to provide services.

The project will adapt the principles in International Public Sector Accounting Standard (IPSAS) 21, Impairment of Non-Cash-Generating Assets, in accordance with PSAB’s International Strategy and its Criteria for Modifying and Reviewing IPSAS Principles.

Staff Contact(s)

Amanda Senkowski, CPA, CA Principal, Public Sector Accounting Board

Phone number  +1 647 956 6628
Email address  [email protected]
Riley Turnbull, CPA, CA Principal, Public Sector Accounting Board

Phone number  +1 416 204 3245
Email address  [email protected]
Antonella Risi, CPA, CA Associate Director, Public Sector Accounting Board

Phone number  +1 416 204 3484
Email address  [email protected]

Project Status

  • Information gathering

    ​Research on preliminary issues

    ​Review of existing PSA Handbook guidance​

    ​ ​Analysis of IPSAS 21 principles​

  • Approving project

    ​Project proposal approved by PSAB in March 2026​

  • Engaging communities
  • Deliberating feedback
  • Final pronouncement

Impairment of Assets Held for Service Potential

PSAB will consult with interested and affected parties when it issues an exposure draft. Your feedback will help inform the development of a new standard on impairment.

Meeting & event summaries

March 11, 2026

PSAB Decision Summary – March 11-12, 2026

PSAB reviewed and approved the project proposal for the second official application of PSAB’s International Strategy, Impairment of Assets Held for Service Potential . The project will be adapting International Public Sector Accounting Standard (IPSAS) 21, Impairment of Non-Cash Generating Assets, in keeping with PSAB’s Criteria for Modifying and Reviewing IPSAS principles. Adaptation of IPSAS 26, Impairment of Cash-Generating Assets, will be considered at a future date.

The presentation included feedback from both the Indigenous Advisory Group (IAG) and the Technical Advisory Group (TAG) on the project scope.

Disclaimer

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 voting process.