Public Sector Accounting Standards (PSAS)

Revised standards – 2022-2023 Annual Improvements

The PSAB issued the following narrow-scope amendments as a result of the 2022-2023 annual improvements:

• updated the transitional provisions in Section PS 3160, Public Private Partnerships, to explicitly state that early adoption is permitted and
• updated Section PS 3420, Inter-entity transactions, to clarify the application of accounting guideline, PSG-8, Purchased Intangibles, to inter-entity transactions.

The remaining amendments approved as a result of the 2022-2023 annual improvements will be included in a future PSA Handbook release.

Effective for fiscal years beginning on or after April 1, 2023, with early application permitted.

New framework - The Conceptual Framework for Financial Reporting in the Public Sector

The PSAB issued The Conceptual Framework for Financial Reporting in the Public Sector, which replaces the conceptual aspects of Section PS 1000, Financial Statement Concepts and Section PS 1100, Financial Statement Objectives.

The conceptual framework highlights considerations fundamental for the consistent application of accounting issues in the absence of specific standards. The accompanying Basis for Conclusions document explains PSAB’s reasoning for key decisions made.

Effective for fiscal years beginning on or after April 1, 2026, with early application permitted.

PSAB has approved the reporting model standard and related consequential amendments relating to Section PS 1202, Financial Statement Presentation. The standard and consequential amendments are expected to be issued in October 2023 and would also be effective April 1, 2026. The Basis for Conclusions will be published in November 2023.

New standard - Public private partnerships

The PSAB issued a new standard (PS 3160) that addresses the recognition, measurement, presentation and disclosure of infrastructure procured by public sector entities through certain types of public private partnership arrangements. This would include private partnership arrangements where the private sector partner is obligated to:

• design, build, acquire or better new or existing infrastructure
• finance the transaction past the point where the infrastructure is ready for use
• operate and/or maintain the infrastructure

Effective for fiscal years beginning on or after April 1, 2023, with early application permitted.

Exposure draft – Employee Benefits, Proposed Section PS 3251

The PSAB issued an exposure draft that outlines principles for the first of several phases of the revised employee benefits standards.

Proposed Section PS 3251 would replace existing sections PS 3250, Retirement Benefits, and PS 3255, Post-employment Benefits, Compensated Absences and Termination Benefits. Key changes include:

• the rate used to discount a post-employment benefit plan would depend on the plan’s funding status
• a deferral and amortization approach for actuarial gains and losses would no longer be used

The comment period is closed. PSAB is currently deliberating feedback received.

Additional non-authoritative guidance

To stay ahead of the curve, find additional non-authoritative guidance to help you navigate the application of the Public Sector Accounting Standards.

• On-Demand Workshop – Introduction to International Public Sector Accounting Standards (PSAB, 2023)
• Reporting Sustainability Program Information – Amendments to RPGS1 and 3: Additional non-authoritative guidance (IPSASB, 2023)

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