Public Sector Accounting Standards

Concepts Underlying Financial Performance

Summary

The conceptual framework in Sections PS 1000, Financial Statement Concepts, and PS 1100, Financial Statement Objectives, require review with a focus on measuring the financial performance of public sector entities.

Staff Contact(s)

Antonella Risi, CPA, CA

Principal, Public Sector Accounting Board

Project Status

  • Information gathering

    Completed prior to December 2010

  • Approving project

    PSAB approved the project in December 2010

  • Consulting stakeholders

    PSAB established the Concepts Underlying Financial Performance Task Force

    Consultation Papers 1, 2, 3 were issued in 2011, 2012, 2015, each followed by public outreach

    Statement of Concepts – A Revised Conceptual Framework for the Canadian Public Sector issued May 2018

    Statement of Principles – A Revised Reporting Model for the Canadian Public Sector issued May 2018

  • Deliberating feedback
  • Final pronouncement

Meeting & event summaries


December 14, 2017

PSAB Decision Summary – December 14-15, 2017

The Board approved the Statement of Concepts, “A Revised Conceptual Framework for the Canadian Public Sector” and the Statement of Principles, “A Revised Reporting Model for the Canadian Public Sector.” The Board expects to issue the documents in the spring of 2018.

September 21, 2017

PSAB Decision Summary – September 21-22, 2017

The Board discussed the financial statement foundations and financial statement objectives, as well as a revised reporting model. In particular, the Board discussed the concept of control and service capacity, and considered improvements to the financial statement objectives. The Board also considered a number of illustrative financial statements to help visualize how the proposed reporting model would look for different types of public sector entities.

June 22, 2017

PSAB Decision Summary – June 22-23, 2017

The Board discussed the elements of financial statements and provided feedback to its task force.

March 16, 2017

PSAB Decision Summary – March 16-17, 2017

PSAB discussed a draft recognition and measurement chapter of a statement of principles and provided feedback to its task force.

December 15, 2016

PSAB Decision Summary – December 15-16, 2016

PSAB continued its discussion on the reporting model and provided the task force with direction on a proposed reporting model to be presented in a statement of principles.

September 26, 2016

PSAB Decision Summary – September 26-27, 2016

PSAB discussed various reporting model alternatives and expects to continue the discussion at its December 2016 meeting.

June 16, 2016

PSAB Decision Summary – June 16-17, 2016

PSAB discussed the qualitative characteristics and related considerations and provided feedback to the task force.

December 14, 2015

PSAB Decision Summary – December 14-15, 2015

PSAB received a high-level summary of responses to Consultation Paper 3, “Conceptual Framework Fundamentals and the Reporting Model,” and provided feedback to the Task Force on alternatives to address a few key issues revealed in the responses.

June 18, 2015

PSAB Decision Summary – June 18-19, 2015

PSAB discussed issues related to the objectives of financial statements and provided feedback to the Conceptual Framework Task Force.

December 15, 2014

PSAB Decision Summary – December 15-16, 2014

PSAB reviewed a third consultation paper and provided feedback to its task force.

March 20, 2014

PSAB Decision Summary – March 20-21, 2014

PSAB provided feedback to its task force on financial statement presentation issues. The task force plans to consult stakeholders on this topic as it impacts other components of the conceptual framework. The third consultation paper is expected to be issued in the second half of 2014.

December 12, 2013

PSAB Decision Summary – December 12-13, 2013

PSAB provided feedback to the Conceptual Framework Task Force on various issues.

September 23, 2013

PSAB Decision Summary – September 23-24, 2013

PSAB considered and discussed the proposed definitions of the elements of financial statements and provided feedback to the Conceptual Framework Task Force.

June 12, 2013

PSAB Decision Summary – June 12-13, 2013

PSAB received a detailed analysis of responses to its task force’s Consultation Paper 2, “Measuring Financial Performance in Public Sector Financial Statements,” and an update on the next steps of the project.

March 21, 2013

PSAB Decision Summary – March 21-22, 2013

PSAB received a presentation on the conceptual framework of the Governmental Accounting Standards Board, which establishes accounting and financial reporting standards for U.S. state and local governments.

December 13, 2012

PSAB Decision Summary – December 13-14, 2012

PSAB received a report on the outreach and consultation activities undertaken and feedback received regarding its task force’s Consultation Paper 2, “Measuring Financial Performance in Public Sector Financial Statements,” since its September 2012 PSAB meeting. Consultation with more stakeholder groups will continue in 2013.

September 20, 2012

PSAB Decision Summary – September 20-21, 2012

PSAB discussed the final draft of its task force’s Consultation Paper 2, “Measuring Financial Performance in Public Sector Financial Statements.” It was requested that a representative of the Governmental Accounting Standards Board attend a subsequent PSAB meeting to discuss the United States’ position.  

The Board also received an update on the next steps of the project, including posting the Consultation Paper on the PSAB website in October 2012 with related webcast, and other planned outreach and consultation activities prior to the end of the comment period on January 31, 2013.

June 26, 2012

PSAB Decision Summary – June 26-27, 2012

PSAB received a presentation on the proposed content of a second consultation paper and provided feedback for the task force’s consideration. The consultation paper will address:

  • key characteristics of public sector entities, revised in accordance with responses received on Consultation Paper 1;
  • the objective and context of public sector financial reporting;
  • to whom public sector entities are accountable and what they are accountable for; and
  • alternative models of measuring financial performance to meet identified accountabilities.

March 21, 2012

PSAB Decision Summary – March 21-23, 2012

At its December 2011 meeting, PSAB reviewed a proposed timeline indicating a completion date of September 2016. PSAB expressed a desire to proceed with this project in a more timely manner. At this meeting, PSAB considered and supported a revised approach and timeline.

The revised approach focuses on two primary issues: the characteristics of public sector entities, which were addressed in Consultation Paper 1; and the measure of financial performance, which will be addressed in Consultation Paper 2. The project is expected to be completed by September 2015.

December 15, 2011

PSAB Decision Summary – December 15-16, 2011

PSAB received a presentation regarding the Task Force’s Consultation Paper 1 detailing the 24 responses received, the Task Force’s consideration of the issues raised and the proposed disposition. The Task Force noted that an issues analysis, responding to the major issues raised, will accompany a second Consultation Paper.

PSAB provided feedback to the Task Force on next steps in the project. A revision to the timeline is proposed to accommodate additional issues raised in the responses. PSAB encouraged the Task Force to consider other methods of consulting with constituents as well as ways to shorten the proposed timeline, while recognizing that a conceptual framework project is a significant undertaking.

September 29, 2011

PSAB Decision Summary – September 29-30, 2011

PSAB received a presentation on the Conceptual Framework Task Force’s Consultation Paper 1, issued in August 2011. The Board discussed the proposed characteristics of public sector entities and provided some feedback to be taken back to the Task Force.

June 23, 2011

PSAB Decision Summary – June 23-24, 2011

PSAB received an update on the progress of the project to date, including a project overview and proposed timetable for the project as well as preliminary views taken by the task force. The Board indicated its support for each of these aspects of the project.

Next steps include issuing an initial task force document for use in consultations with stakeholders (deputy ministers of finance, comptrollers general, legislative auditors, local governments and government organizations and their auditors) over the summer and fall of 2011.  Consultations on a second task force document are planned for the second quarter of 2012.  The intent of these upfront consultations is for the task force to garner input from the community on the building blocks first, such as the characteristics of public sector entities and any unique accounting or reporting implications of those characteristics, before it drafts a document for PSAB approval for public comment. 

December 9, 2010

PSAB Decision Summary – December 9-10, 2010

PSAB approved a project to review the concepts underlying financial performance in its conceptual framework.  The Board confirmed that this project is its most important project in terms of significance and potential effect, the extent of resources allocated to it, and the time PSAB anticipates devoting to research, discussion and analysis. Nominations for task force members are now under consideration.

As part of this review, the issues raised and the recommendations made by the Deputy Ministers of the Joint Working Group will need to be considered. In addition, the project will consider the work of the International Public Sector Accounting Standards Board on its conceptual framework project and its applicability the Canadian public sector. 

News


October 29, 2018

News

Video – Statement of Concepts, A Revised Conceptual Framework for the Canadian Public Sector

October 29, 2018. Watch this easy-to-understand video that takes you through the key aspects of PSAB’s Statement of Concepts, A Revised Conceptual Framework for the Canadian Public Sector. Ensure you get your responses on this important topic in to PSAB by November 28, 2018!

October 29, 2018

News

Video – Statement of Principles, A Revised Reporting Model for the Canadian Public Sector

October 29, 2018. Watch this easy-to-understand video that takes you through the key aspects of PSAB’s Statement of Principles, A Revised Reporting Model for the Canadian Public Sector. Ensure you get your responses on this important topic in to PSAB by November 28, 2018!

October 17, 2018

News

Article – Working in the public interest: Increasing accountability in public sector financial statements

October 17, 2018.  PSAB’s project to revise the public sector conceptual framework and reporting model proposes amendments to financial statement information that would make it more meaningful by increasing its accountability value.  Explore some of the proposals in this article.

October 5, 2018

News

In Brief – How the proposals for a revised conceptual framework and reporting model consider the needs of government not-for-profit organizations

October 5, 2018. Read this overview of how the proposals in the Statement of Concepts, “A Revised Conceptual Framework for the Canadian Public Sector” and the Statement of Principles, “A Revised Reporting Model for the Canadian Public Sector” consider the needs of government not-for-profit organizations and their stakeholders. Deadline for comments is November 28.

October 5, 2018

News

In Brief – How the proposals for a revised conceptual framework and reporting model consider the needs of Indigenous governments

October 5, 2018. Read this overview of how the proposals in the Statement of Concepts, “A Revised Conceptual Framework for the Canadian Public Sector” and the Statement of Principles, “A Revised Reporting Model for the Canadian Public Sector” consider the needs of Indigenous governments and their stakeholders. Deadline for comments is November 28.

September 28, 2018

News

Article – What’s Happening with Net Debt?

September 28, 2018. As part of the project to revise the conceptual framework and reporting model for public sector entities, PSAB is proposing amendments to the calculation and presentation of net debt.

September 27, 2018

News

One Page Summary – Statement of Concepts, “A Revised Conceptual Framework for the Canadian Public Sector”

September 27, 2018.  This one page summary provides an overview of the key proposals in PSAB’s Statement of Concepts, “A Revised Conceptual Framework for the Canadian Public Sector”.

September 27, 2018

News

One Page Summary – Statement of Principles, “A Revised Reporting Model for the Canadian Public Sector”

September 27, 2018.  This one page summary provides a snapshot of the reporting model proposed in PSAB’s Statement of Principles, “A Revised Reporting Model for the Canadian Public Sector”.

September 19, 2018

News

Summary Comparison – PSAB’s Proposals for a Revised Reporting Model and IPSASB’s Existing Reporting Model

September 19, 2018.  This Summary Comparison provides an overview of the differences between PSAB’s proposals for a revised reporting model and IPSASB’s existing reporting model.

September 19, 2018

News

Summary Comparison – PSAB’s Proposals for a Revised Conceptual Framework and IPSASB’s Existing Conceptual Framework

September 19, 2018.  This Summary Comparison provides an overview of the differences between PSAB’s proposals for a revised conceptual framework and IPSASB’s existing conceptual framework.

September 12, 2018

News

In Brief — Statement of Concepts, “A Revised Conceptual Framework for the Canadian Public Sector”

September 12, 2018. This In Brief provides a plain and simple overview of the key proposals in the Statement of Concepts, “A Revised Conceptual Framework for the Canadian Public Sector”. It also presents background information about PSAB’s Concepts Underlying Financial Performance project.

September 12, 2018

News

In Brief — Statement of Principles, “A Revised Reporting Model for the Canadian Public Sector”

September 12, 2018. This In Brief provides a plain and simple overview of the key amendments to the reporting model proposed in the Statement of Principles, “A Revised Reporting Model for the Canadian Public Sector”. It also presents background information about PSAB’s Concepts Underlying Financial Performance project.

September 7, 2018

News

In Brief Podcast – PSAB’s May 2018 Release of Documents for Comment on its Conceptual Framework, Reporting Model and International Strategy Proposals

September 7, 2018.  This Podcast provides a plain and simple overview of PSAB’s release of documents for comment on its Conceptual Framework, Reporting Model and International Strategy proposals.

August 14, 2018

News

Webinar – Explore PSAB’s statement of principles for a revised reporting model

August 14, 2018. Tune in to this webinar on October 17, 2018 (English) or November 7, 2018 (French) to learn about the key features of PSAB’s Statement of Principles, “A Revised Reporting Model for the Canadian Public Sector.”

August 14, 2018

News

Webinar – PSAB’s proposed conceptual framework

August 14, 2018. Tune in to this webinar on October 15, 2018 (English) or November 5, 2018 (French) to learn about the key features of PSAB’s Statement of Concepts, “A Revised Conceptual Framework for the Canadian Public Sector.”

May 28, 2018

News

Major projects move ahead – PSAB releases documents for comment on its Conceptual Framework, Reporting Model and International Strategy proposals

May 28, 2018. PSAB released several documents for comment on topics that will impact stakeholders for decades to come. We want to hear from you! To support you in providing feedback, we are doing extensive outreach and have issued numerous plain language resources – from In Brief documents for specific stakeholder groups, podcasts, and summary comparisons. Stay tuned for more!

May 28, 2018

News

Statement of Principles – A Revised Reporting Model for the Canadian Public Sector

May 28, 2018. Weigh in on proposals for a new reporting model! PSAB has issued a Statement of Principles proposing a revised reporting model for the Canadian public sector. Stakeholders are encouraged to submit their responses by November 28, 2018.

May 28, 2018

News

Statement of Concepts – A Revised Conceptual Framework for the Canadian Public Sector

May 28, 2018. Proposed new concepts for the Canadian public sector! PSAB has issued a Statement of Concepts proposing a revised conceptual framework and it wants your input. Stakeholders are encouraged to submit their responses by November 28, 2018.

August 24, 2017

News

Volunteer Opportunities – Conceptual Framework Task Force

August 24, 2017. PSAB is currently seeking new members for its Concepts Underlying Financial Performance Task Force, a committee dedicated to supporting the review and revision of the conceptual framework and reporting model for the Canadian public sector. If you are interested, please submit a resumé by September 22, 2017.

August 20, 2015

News

CPA Canada Article – Setting the Foundation for Public Sector Entities: PSAB Conceptual Framework

August 20, 2015.  In this article, Clyde MacLellan, Chair of the Conceptual Framework Task Force, explains the work being done on the public sector conceptual framework.  The focus has been on getting the foundation of public sector accounting and financial reporting right.

May 21, 2015

News

Webinar – A Conceptual Framework and Reporting Model for the Public Sector

May 21, 2015. Tune in to this webinar on June 22, 2015 (English) or June 29, 2015 (French) to learn about the third Consultation Paper issued by the Conceptual Framework Task Force.

March 11, 2015

News

Consultation Paper – Conceptual Framework Fundamentals and the Reporting Model

March 11, 2015. PSAB’s Conceptual Framework Task Force has issued Consultation Paper 3 that proposes a new reporting model and draft principles on public sector characteristics, financial statement objectives, qualitative characteristics, elements, recognition, measurement and presentation. Stakeholders are encouraged to submit their comments, on the form provided, by August 31, 2015.

October 23, 2012

News

Webcast – Consultation Paper 2 – Measuring Financial Performance

October 23, 2012. PSAB’s Conceptual Framework Task Force is in the process of reviewing the concepts underlying financial performance in the conceptual framework set out in the PSA Handbook.  Watch this webcast for a review of Consultation Paper 2, how the paper’s conclusions were reached, and the next steps.

October 11, 2012

News

Consultation Paper – Measuring Financial Performance in Public Sector Financial Statements

October 11, 2012. PSAB’s Conceptual Framework Task Force has issued Consultation Paper 2 that proposes an objective and primary audience for financial reporting, the accountabilities to be reported on in financial statements, and alternative reporting models to demonstrate them. Stakeholders are encouraged to submit comments, on the form provided, by January 31, 2013.

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 ballot process.