Public Sector Accounting Board
Decision Summary
November 23-24, 2009

Tax Revenue
PSAB approved a final Section on Tax Revenue.  Most issues raised in the responses to the Re-exposure Draft issued in April 2009 requested clarification of the proposals, but no new substantive issues were raised.  The Section addresses attribution of taxes, authorization, the taxable event, initial and subsequent measurement and the criteria for recognition.  It also distinguishes transfers made through a tax system from tax concessions.  The final standard is expected to be released in the new year.   

Amendments Resulting from the Adoption of IFRSs in Canada
PSAB approved an Exposure Draft (ED) for comment proposing to withdraw Section PS 3800, Government Assistance – Application of CICA Handbook – Accounting Section 3800 from the Public Sector Accounting (PSA) Handbook, and to remove Appendix B of the Introduction to Public Sector Accounting Standards.  These proposals are consistent with PSAB’s recent policy to not override generally accepted accounting principles (GAAP) established by other standard setters.  The policy will impact those government organizations that follow International Financial Reporting Standards. The ED is expected to be released in December 2009.  

First-time Adoption of PSA Standards by Government Organizations
PSAB approved an ED for comment to address the first-time adoption of the PSA Handbook. As a result of the recent amendment to the Introduction that included the elimination of the government business-type organization category of government organizations, certain government organizations will adopt the PSA Handbook as their source of GAAP for fiscal periods beginning on or after January 1, 2011.  The ED allows first-time adopters to elect certain exemptions and provides certain required exceptions from the general requirements to adopt the PSA Handbook retroactively and restate prior periods.  The ED is expected to be released in January 2010.    

Amalgamations and Restructurings
PSAB provided direction on whether an amalgamation is an acquisition, the characteristics and definition of an amalgamation, the initial measurement basis of amalgamations, and whether an amalgamation created a new entity or a continuation of the predecessor entities.  An exposure draft is expected to be presented to the Board for approval in March 2010.  

GAAP for Government Not-for-Profit Organizations (GNFPOs)
PSAB discussed the nature and characteristics of GNFPOs, user needs as they impact the source of GAAP for these types of organizations, and the accounting standards for this sector with a view to establishing the content of an exposure draft.  The Board will continue its discussions at a meeting to be arranged in January 2010.  

Government Transfers
PSAB discussed the responses to a second Re-exposure Draft (RED) issued in April 2009. Many of the responses took exception to the proposals for receipts of capital transfers, citing dislike of the exception to the conceptual framework and other practical and theoretical concerns.  PSAB provided direction to the task force regarding the recognition of capital transfers received.  A third RED is expected to be presented to the Board for approval in March 2010.  

Entity Level Financial Statements
PSAB discussed the responses to the Statement of Principles and agreed with the proposal by the task force to reconstitute the project.  PSAB directed the task force to present an exposure draft in March 2010 to address the characteristics of government organizations and the presentation of financial statement information for government organizations. PSAB also directed staff to present project proposals for related party transactions and recognition of appropriations in March 2010.  

Strategic Plan for 2010-2013 and Work Plan for 2010-2011
PSAB discussed drafts of a strategic plan and a work plan.  PSAB generally agreed with the documents and provided staff with suggestions to consider.  Revised plans will be presented to the Board at the meeting in January 2010.