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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 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. |
Strategic Planning for 2010-2013
A special meeting of the Board was held on September 28, 2009 to discuss strategic directions for 2010-2013. Task Force Chairs were invited to participate. PSAB considered the responses to the Stakeholder and Weathervane surveys in its deliberations. Strategic directions were discussed regarding involvement with international standard setting, broadening the application of the PSA Handbook, continuing to issue Statements of Recommended Practice and communications with constituents. The Board will consider a formal Strategic Plan for approval at the November meeting. Introduction to PSA Handbook – Government Organizations
PSAB approved an amendment to the Introduction to the PSA Handbook together with consequential amendments to other sections of the PSA Handbook. The amendment confirms the direction previously provided to government business enterprises as self-sustaining commercial organizations to adhere to the standards for publicly accountable enterprises in the private sector (i.e., International Financial Reporting Standards (IFRSs)), and eliminates the category “government business-type organizations” resulting in recategorization as either government not-for-profit organizations or other government organizations (OGOs). As a result, OGOs must determine their most appropriate source of GAAP based on needs and objectives. Although the PSA Handbook may apply to many OGOs, the Introduction provides examples of factors to be considered to decide if IFRSs may be more suitable. The amendments take effect for fiscal periods beginning on or after January 1, 2011. PSAB also agreed to provide guidance on exceptions to the retroactive application with restatement of prior periods for those government organizations adopting the PSA Handbook. Liability for Contaminated Sites
PSAB approved an ED for comment. The ED proposes that a liability will be recognized when an environmental standard exists, contamination exceeds that environmental standard, the government either is directly responsible or accepts responsibility for the contamination, and a reasonable estimate of the amount can be made. An environmental standard is generally set out in the form of a legislation, contract or agreement that is legally enforceable. In some cases, an environmental standard may be created by government policy or by guidelines developed by external organizations. A government may have an established policy or a pattern of past practice of voluntarily complying with such standards that may result in a liability under this standard. The measurement would result in the best estimate of the amount required to settle the liability. The ED proposes application for fiscal years beginning on or after April 1, 2012, and earlier adoption is encouraged. The ED is expected to be released for comment in November 2009. Foreign Currency Translation
PSAB approved an ED for comment arising from the Exposure Draft issued for Financial Instruments. The ED for foreign currency proposes to translate all monetary items and those non-monetary items included in the fair value category using the exchange rate on the financial statement date. As the exchange gain or loss reported prior to settlement is unrealized, it is presented as a remeasurement gain or loss in the statement of operations. Hedge accounting provisions are would be removed. It is proposed that a government will adopt these changes in the same fiscal period as the Financial Instruments standards (i.e., for fiscal years beginning on or after April 1, 2012). The ED is expected to be released in October with a comment period that expires December 11, 2009, consistent with that of the Financial Instruments ED. GAAP for Government Not-for-Profit Organizations (GNFPOs)
PSAB discussed the responses to the Invitation to Comment jointly issued with the Accounting Standards Board (AcSB). Over 150 responses from a number of different types of not-for-profit organizations were received. PSAB concluded that there was sufficient support to develop a 4400 series for incorporation into the PSA Handbook as a reporting option. Existing provisions within the Introduction to the PSA Handbook applicable to GNFPOs will be retained until the AcSB and PSAB have completed their deliberations, exposed specific proposals for comment and established timelines for transition. PSAB Work Plan 2010-2011
Based on its discussions of the Strategic Plan for 2010-2013, PSAB discussed possible projects and suggested meeting dates for the 2010-2011 fiscal year. |