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This summary of decisions of the Public Sector Accounting Board (PSAB) has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on projects, which might change after further deliberations by the PSAB. Decisions to publish exposure draft and Handbook material are final only after a formal ballot process.
For more detailed information about PSAB projects, please refer to the project summaries under Projects. |
Introduction to Statements of Recommended Practice (SORPs)
PSAB approved revisions to the “Introduction to Statements of Recommended Practice.” It reviewed several suggestions for changing the name of SORPs and concluded that the alternatives did not sufficiently reflect the nature of SORPs. Revisions to the Introduction make it abundantly clear that SORPs do not constitute GAAP and that they are intended to provide general guidance but are not mandatory or prescriptive. Indicators of Government Financial Condition PSAB approved a draft SORP on “Indicators of Financial Condition.” The draft provides a framework of elements of financial condition and proposes, but does not require a core set of indicators for each element. The draft SORP is expected to be released in the summer. New Project Approved — Entity-level Financial Statements This new project will address those issues specific to entity-level financial statements that are not currently addressed in the Handbook. The first step in the project will be to identify those issues. Environmental Liabilities The discussion included the need for a specific standard, current reporting practice compared to guidance on liabilities and contingent liabilities, and the extent of issues to be resolved including measurement. The work of the task force continues, with a view to issuing a new standard in March 2010. Tax Revenue PSAB received an update on the responses to the Exposure Draft. The task force expects to meet during the summer to analyze the comments in detail and recommend next steps for the project. Financial Instruments PSAB received a presentation from the task force on its deliberations of risk, accountability and financial reporting. The task force presented a number of reporting alternatives that could be considered. The Board confirmed its preference to present a principle driven proposal. The task force will continue its discussions. International Public Sector Accounting Standards Board (IPSASB) Conceptual Framework PSAB received an update on the development of IPSASB’s conceptual framework. Topics discussed included the scope of the framework, the objectives of financial reporting and the elements of financial statements. Service Concessions PSAB received staff comments on IPSASB’s Consultation Paper, “Accounting and Financial Reporting for Service Concession Arrangements” on accounting for service concessions in public-private partnerships. The Board will continue to monitor the developments of IPSASB’s project and consider its application in the Canadian context. Joint Working Group PSAB was updated on progress of the Joint Working Group (JWG). PSAB emphasized that the final output will be subject to due process seeking input from all of its stakeholders. |
