Public Sector Accounting Standards (PSAS)

New standard – Financial Statement Presentation

PSAB issued a new financial reporting model, including related consequential amendments that responds to the need for understandable financial statements for the public and its elected and appointed representations and replaces PS 1201, Financial Statement Presentation. The new standard includes change to the presentation of financial statements, such as:

• changes in the statement of financial position
• adding a new statement of net financial assets or net financial liabilities
• providing the option to present the change in net financial assets or net financial liabilities on the statement of net financial assets or net financial liabilities
• adding a new statement of changes in net assets or net liabilities
• new budget requirements in order to present an amended budget

The statement of operations remains substantially unchanged to the one in superseded Section PS 1201. The new standard includes guidance in various appendices and illustrative financial statements and includes a discussion on going concern.

Effective for fiscal years beginning on or after April 1, 2023, with early application permitted if the Conceptual Framework is adopted at the same time. The accompanying Basis for Conclusions document explains PSAB’s reasoning for key decisions made.

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, not included above, will be included when the consequential amendments related to the new reporting model in Section PS 1202, Financial Statement Presentation is issued into the Handbook.

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.

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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