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Chartered Accountants of Canada Public Sector Accounting Board - Conseil sur la comptabilité dans le secteur public

Public Sector Accounting Board
Decision Summary
March 17-18, 2008

 

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.

 

Assessment of Tangible Capital Assets

PSAB approved, subject to written ballot, a draft of a Statement of Recommended Practice (SORP) on the “Assessment of Tangible Capital Assets.” The Board is of the view that the proposed changes to the Introduction to SORPs addresses many of the concerns raised by stakeholders as to the authoritative status of SORPs.

The Board approved the principles presented and suggested a number of editorial changes to the document. It is anticipated that the draft SORP will be issued for public comment in April 2008, and the final SORP will be presented to PSAB for approval at its November 2008 meeting.

Financial Instruments

PSAB discussed the responses received to date on the “Financial Instruments” Statement of Principles (SOP) issued in June 2007. The Board requested the task force to consider a number of alternatives to respond to the issues raised relating to accounting for, and presenting information about, financial instruments in government financial statements. PSAB expects to discuss these alternatives at its November 2008 meeting.

Indicators of Government Financial Condition

PSAB discussed comments received to date on the “Indicators of Government Financial Condition” SOP issued in October 2007. The Board agreed that a SORP should continue to be developed separately rather than be incorporated as an amendment to the Financial Statement Discussion & Analysis SORP. The Board noted that indicators of financial condition are not restricted to information contained in the financial statements. PSAB discussed the benefits of having a core set of indicators for each of the elements. Subsequent to its deliberations on the issue, the Board requested the task force to consider whether some flexibility should be provided. A draft is expected to be discussed at the June 2008 PSAB meeting.

Not-for-Profit Organizations

PSAB received a presentation made by the Accounting Standards Board’s Not-for-Profit Advisory Committee. The purpose of the presentation was to update PSAB on the potential sources of GAAP that could be applied by not-for-profit organizations in Canada. Included in the discussion were International Financial Reporting Standards, and existing domestic private and public sector standards.

Joint Working Group

PSAB received an update on, and discussed the deliberations of, the Joint Working Group (JWG) in November 2007 and January 2008.

Government Transfers

PSAB has received 48 responses to the Re-Exposure Draft issued in 2007. The Board noted that it is encouraged by the thoroughness of the responses which, together with the feedback to be received from the JWG, will provide a solid basis for its future deliberations.

International Public Sector Accounting Standards Board (IPSASB)

PSAB received a presentation on the status of various IPSASB projects and initiatives following their meeting in Toronto on March 10-13, 2008. Topics included conceptual framework, financial instruments, service concession agreements and borrowing costs, among other things. The next IPSASB meeting is scheduled for June 2008 in Moscow.