Amends Section PS 2601 to introduce an irrevocable accounting policy election available to allow public sector entities to elect on initial recognition to recognize exchange gains and losses on a financial asset or financial liability directly in the statement of operations. Consequential amendments have been made to Section PS 1201 and Section PS 3450.

Effective for years beginning on/after April 1, 2022.

Amended to clarify (i) the remeasurement impact of derivatives and other categories of financial instruments may be presented as separate line items on the statement of change in net debt; (ii) a new subtotal for the change in net debt excluding the impact of remeasurement gains and losses may be presented on the statement of change in net debt; and (iii) a footnote on the net debt indicator may be included in the statement of financial position to refer readers to the additional detail provided on the statement of change in net debt.

Effective in the period Section PS 2601 and Section PS 3450 are applied (see below).

Amended to improve specific areas including (i) changes to the accounting treatment for bond repurchase transactions; (ii) clarification on aspects of the Section’s application; and (iii) clarification on transitional provisions.

Effective date deferred to years beginning on/after April 1, 2022.

Transitional provisions amended in September 2015 to extend the effective date by three years to years beginning on/after April 1, 2019 (except for those government organizations that applied the CPA Canada Handbook – Accounting prior to their adoption of CPA Canada Public Sector Accounting Handbook in which case these sections apply for years beginning on/after April 1, 2012).

These sections establish new recognition, measurement and disclosure requirements for financial instruments and the presentation of associated gains and losses, as well as related consequential amendments.

At its board meeting on March 22-23, 2018, the PSAB approved an extension of the effective date of PS 3450 to years beginning on/after April 1, 2021.

Effective dates have been deferred for governments from April 1, 2021 to April 1, 2022.

Section PS 2601 is amended to exclude from its scope the presentation of the exchange gain or loss component of a financial instrument’s change in fair value when that financial instrument is associated with the federal government’s foreign reserves. Sections PS 1201 and 3450 amended to clarify that amounts subject to the scope exclusion in Section PS 2601 are not required to be presented in the statement of remeasurement gains and losses.

Effective for years beginning on/after April 1, 2022.

New section establishes standards on how to account for and report a liability for asset retirement obligations.

Effective date deferred from April 1, 2021 to years beginning on/after April 1, 2022.

Amended April 2023 and effective immediately.

New section establishing standards on how to account for public private partnership arrangements.

Effective for years beginning on/after April 1, 2023.

Amended April 2023, effective immediately, as a result of 2022-2023 Annual Improvements to update the transitional provisions of Section PS 3160 to permit early adoption.

New section establishes standards on how to account for and report on revenue.

Effective date deferred from April 1, 2022 to years beginning on/after April 1, 2023.

Section PS 1000 is amended to allow for recognition of purchased intangibles in financial statements. Sections PS 1201 and 1200 are amended to remove disclosure requirements for unrecognized purchased intangibles.

Effective for years beginning on/after April 1, 2023.

New guideline explaining scope of the intangibles allowed to be recognized in financial statements given the removal of the recognition prohibition relating to purchased intangibles in Section PS 1000.

Effective for years beginning on/after April 1, 2023.

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Consequential amendments

Replaces PS 1000, Financial Statement Concepts and PS 1100,Financial Statement Objectives. The conceptual framework covers:

Consequential amendments include (but are not limited to):

PS 1150, Generally Accepted Accounting Principles, amended to include definition of “entity-developed accounting policies”;

PS 2100, Disclosure of Accounting Policies, amended to include reference to digital technology and to remove certain restrictions where technology can assist in making the disclosure and financial statements more understandable; and

PS 2120, Accounting Changes, updated to provide guidance related to updating existing entity-developed accounting policies.

While the Conceptual Framework is effective immediately for standard setting, it is effective for entities for years beginning on/after April 1, 2026. The conceptual framework is applied prospectively.

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Consequential amendments

This new Section replaces Section PS 1201, Financial Statement Presentation. The new Section:

Some significant consequential amendments include (but are not limited to):

Other minor amendments have also been made to the PSA Handbook including replacing references to Sections PS 1201 throughout the PSA Handbook with Section PS 1202, removing the reference or replacing it with another Section.

Although some consequential amendments are editorial in nature, most will change practice in relation to the presentation of financial statements. These consequential amendments are accompanied by a new transitional paragraph in the affected Sections and Guidelines that outlines:

Section PS 1202 applies to fiscal years beginning on or after April 1, 2026. Earlier adoption is permitted only if the Conceptual Framework is also adopted at the same time. Prior period amounts would need to be restated to conform to the presentation requirements for comparative financial information in Section PS 1202.