Conceptual Framework and Basis for Conclusions Released
The new Conceptual Framework was issued in the CPA Canada Public Sector Accounting Handbook (PSA Handbook) on December 1, 2022.
Also available is the accompanying Basis for Conclusions to explain the rationale for PSAB’s decisions while developing each chapter of the Framework. It provides clarity on how the Conceptual Framework affects PSAB’s International Strategy and impacts future standard setting.
A Significant Milestone for Financial Reporting in the Canadian Public Sector
The approval and issuance of the Conceptual Framework is a significant milestone for PSAB and financial reporting in the Canadian public sector. The new Conceptual Framework is the foundation for public sector financial reporting standard setting.
This caps an extensive multi-year review and stakeholder consultation process after PSAB approved this high priority project to amend, if necessary:
- the conceptual framework found in Section PS 1000, Financial Statement Concepts, and Section PS 1100, Financial Statement Objectives, with a focus on measuring the financial performance of public sector entities.
- the reporting model in Section PS 1201, Financial Statement Presentation.
To ensure that the new Conceptual Framework was specific to the Canadian public sector and would stand the test of time, PSAB consulted with Canadian stakeholders extensively – releasing a series of documents for public input.
In June 2022, PSAB approved the new Conceptual Framework. The reporting model standard is expected to be approved and issued in 2023.