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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 9-10, 2009

 

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.

 

Indicators of Financial Condition

PSAB approved a new Statement of Recommended Practice (SORP). The SORP provides a framework of elements of and indicators for reporting on financial condition. The SORP is expected to be released in May 2009.

Tax Revenue

PSAB approved a Re-exposure Draft (RED) for comment. The RED provides additional clarity on a number of issues such as authorization, the distinction between tax concessions and transfers made through a tax system, the attribution of tax revenue and valuation. The RED is expected to be released in the spring.

Government Transfers

PSAB approved a second Re-exposure Draft (RED) for comment that responds to input received throughout due process. The RED proposes that subsequent actions of a recipient can give rise to a liability in particular circumstances and introduces a deferred capital contribution principle for recipients of capital transfers. The RED is expected to be released in the spring.

Financial Instruments

PSAB concluded that preparation of an exposure draft should proceed based on recognition of financial instruments. Fair value measurement would apply to derivatives and portfolio investments that are equities traded in an active market. Presentation of any gains and losses relating to these items would be differentiated from revenue and expenses. Supporting materials will describe PSAB’s assessment of other alternatives.

Joint Working Group — Conceptual Framework Paper

PSAB reviewed staff proposals and decided to defer any decisions on the proposals, given the project priorities survey results on the conceptual framework project. Staff was directed to develop an ongoing analysis of PSAB’s conceptual framework in comparison with the conceptual framework developments of the International Public Sector Accounting Standards Board. This analysis is to incorporate consideration of the alternatives identified in the conceptual framework paper by the Joint Working Group.

Project Priorities Survey — Results

Based on the recent survey results and other factors, PSAB directed staff to prepare project proposals on two new topics – assets and revenues. Project proposals on the scope and issues to be addressed will be discussed at the June meeting.

New Project Approved — Amalgamations and Government Restructuring

PSAB approved a new project on amalgamations and government restructuring. The project will address amalgamation activities, transfer of programs between governments, and restructuring activities involving reallocation of government resources and responsibilities among organizations within a government reporting entity.