Public Sector Accounting Standards

Review of International Strategy

Summary

In developing the 2017-2020 Strategic Plan, the Public Sector Accounting Board (PSAB) determined the time was appropriate to review its current approach towards International Public Sector Accounting Standards.

Over the 2017-2021 period, the Board intended to:

conduct research on the differences between Canadian Public Sector Accounting Standards and International Public Sector Accounting Standards;
learn about the experiences of other jurisdictions that choose to follow International Public Sector Accounting Standards;
publish a consultation paper to get the opinion of stakeholders; and
develop options for the Board’s International Strategy.

Staff Contact(s)

Camila Santos, CPA Principal, Public Sector Accounting Board

+1 416 204 3300

[email protected]

Project Status

Information gathering

Completed in 2017
Approving project

Completed in September 2017
Consulting stakeholders

Consultation Paper – Reviewing PSAB’s Approach to International Public Sector Accounting Standards issued May 2018
Deliberating feedback

Consultation Paper II – Reviewing PSAB’s Approach to International Public Sector Accounting Standards issued May 2019
Final pronouncement

At its May 2020 meeting, PSAB decided on Option 2 – Adapt IPSAS principles when developing future standards as its future International Strategy

PSAB developed changes to its due process documents to reflect its new International Strategy

PSAB updated its GAAP Hierarchy to reflect the change in its International Strategy

PSAB’s International Activities

As of April 1, 2021, PSAB’s new International Strategy is in effect. Get to know how we use international standards, work with the International Public Sector Accounting Standards Board, and ensure Canadian needs are reflected in the development of standards.

News

December 6, 2021

Resource, Webinar

Webinar – PSAB’s International Strategy Update

In 2020, after extensive consultation with Canadians and careful consideration, the Public Sector Accounting Board (PSAB) decided to continue developing Public Sector Accounting Standards (PSAS), but future standards would be based on International Public Sector Accounting Standards (IPSAS) principles. This means that if a project is undertaken and an IPSAS already exists, the principles of that IPSAS will be used as a base for developing the corresponding Canadian PSAS. Watch our recorded English or French webinar to learn about the work PSAB has done related to the implementation of its International Strategy.

November 10, 2020

Resource

Criteria for Modifying and Reviewing IPSAS Principles

How do we know when to modify an IPSAS principle when developing future public sector accounting standards in Canada? Read this overview of the criteria PSAB will follow starting April 1, 2021, when our new International Strategy comes into effect.

September 15, 2020

Resource

Basis for Conclusions – PSAB International Strategy

This document sets out how the Board reached its decision to pursue Option 2: Adapt IPSAS principles when developing future standards as its future International Strategy. Read the Basis for Conclusions for full details.

June 3, 2020

Resource

In Brief – A plain and simple overview of PSAB’s 2020 decision to adapt IPSAS principles when developing future standards

At its May 5, 2020 meeting, PSAB voted to adapt IPSAS principles when developing future standards. This decision has been years in the making, including extensive consultation with Canadian stakeholders, as part of the Board’s International Strategy project. Read this plain and simple overview to understand PSAB’s 2020 decision to adapt IPSAS principles when developing future standards, including a helpful FAQ section.

Meeting & event summaries

March 19, 2021

PSAB Decision Summary – March 9, 2021

PSAB reviewed the significant feedback received from stakeholders on the Exposure Draft, “Proposal to Modify the Canadian GAAP Hierarchy,” relating to Section PS 1150, Generally Accepted Accounting Principles. The Board deliberated and approved revised amendment to the Section to address stakeholder concerns. The rationale was outlined in the Basis for Conclusions document approved at the meeting. The amendment is applicable for fiscal years beginning on or after April 1, 2021.

These amendments will be reflected in the April 2021 update of the CPA Canada Public Sector Accounting Handbook.

December 11, 2020

PSAB Decision Summary – December 11, 2020

PSAB reviewed and approved updated versions of its Terms of Reference, Statement of Operating Procedures and Standard-Setting Due Process Manual for the Accounting Standards Oversight Council’s (AcSOC’s) approval. AcSOC will review and approve the documents at its February 2021 meeting.

September 28, 2020

PSAB Decision Summary – September 28, 2020

PSAB reviewed and approved the:

Exposure Draft, “Proposal to Modify the Canadian Public Sector GAAP Hierarchy”; and
“Criteria for Modifying and Reviewing IPSAS Principles.”

The Board expects to issue both documents in fall 2020.

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.

May 5, 2020

PSAB Decision Summary – May 5, 2020

PSAB received an update on the International Strategy project and the work performed since its December 2019 meeting. The Board reviewed all proposed options and the information requested at its December meeting. Prior to its decision, the Board carefully considered the decision-making criteria included in Consultation Paper 2 and the stakeholder feedback to both the first and second consultation papers.

In accordance with its due process, PSAB voted to approve “Option 2 – Adapt IPSAS principles when developing future standards,” as described in Consultation Paper 2. The Board also directed that the decision will apply to all projects beginning on or after April 1, 2021.

April 4, 2019

PSAB Decision Summary – March 21-22, 2019

PSAB approved Consultation Paper 2, “Reviewing PSAB’s Approach to International Public Sector Accounting Standards.” The Consultation Paper will be issued for comment in spring 2019. The comment period will end on September 30, 2019. During the comment period, Board staff will consult extensively with the stakeholders.

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.