| This summary of Public Sector Accounting Board (PSAB) projects has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further deliberations by PSAB. Decisions to publish Handbook material are final only after a formal ballot process. |
Status: Revised Project Proposal approved. Background
Activities to Date
Next Steps
Contact Information Background Revenues are defined in the Public Sector Accounting (PSA) Handbook in Section PS 1000, Financial Statement Concepts, as “increases in economic resources, either by way of increases of assets or decreases of liabilities, resulting from the operations, transactions and events of the accounting period.” Section PS 1201, Financial Statement Presentation, addresses recognition and disclosure of revenues in general terms. The PSA Handbook has two standards that address two major sources of government revenues, government transfers (Section PS 3410) and tax revenue (Section PS 3510). Other sources of revenues of governments and government organizations include fines and penalties, royalties, license fees, other fees, sales and rental, etc. Reasons for the Project
This project was ranked a high priority in the 2009 Project Priority Survey. Revenue recognition is fundamental to financial reporting. It directly impacts the surplus and deficit reported by governments and government organizations. Though governments and government organizations may be involved in the sale of goods and receive revenues from the provision of services and long-term contracts, these transactions are rarely of an exchange nature (i.e., exchanges of equal value). There is a need to develop revenue recognition principles that apply to revenues that are commonly encountered in the public sector and not addressed in standards for profit-oriented entities. Activities to Date September 2011
PSAB approved a revised project proposal. June 2011
PSAB received an analysis of the nature of government’s sources of revenue in relation to the nature of revenue being addressed in the International Accounting Standards Board's (IASB) Revenue Recognition project. The Board concluded that a public sector focused revenue recognition standard should be developed and requested staff to develop a revised Project Proposal for the Board’s consideration. March 2010
Staff provided an Issues Summary to PSAB on the IASB Revenue Recognition project. June 2009
PSAB approved a Project Proposal and requested staff to update the Board on developments of the IASB’s Revenue Recognition project. Next Steps PSAB expects to reach the following key steps at the dates indicated:
| PSAB Meeting Date | Activity | | March 2012 | Statement of Principles approved | | September 2012 | Exposure Draft approved | | March 2013 | Final PSA Handbook Section approved |
Contact Information Questions or comments on this project should be directed to: Robert Correll, CA
Principal, Public Sector Accounting
Telephone: +1 (416) 204-3460
Fax: +1 (416) 204-3412 The Canadian Institute of Chartered Accountants
277 Wellington Street West
Toronto ON M5V 3H2 Canada |
