PSAB Concepts Underlying Financial Reporting - Resources
Exposure Draft – The Conceptual Framework for Financial Reporting in the Public Sector
Exposure Draft – Consequential Amendments Arising from the Proposed Conceptual Framework
Exposure Draft – Financial Statement Presentation, Proposed Section PS 1202
Exposure Draft – Consequential Amendments Arising from the Financial Statement Presentation Standard, Proposed Section PS 1202
The conceptual framework in Sections PS 1000, Financial Statement Concepts, and PS 1100, Financial Statement Objectives, are currently under review with a focus on measuring the financial performance of public sector entities.
In September 2020, PSAB approved four important exposure drafts, as well as two bases for conclusions for the conceptual framework and reporting model exposure drafts to set out its reasoning for the proposals. These documents were issued on January 11, 2021 and are open for comment until June 30, 2021. The proposals within the exposure drafts have the potential to have wide reaching changes to public sector financial reporting. The four exposure drafts are:
MFOA has provided comments to earlier iterations of the framework. Click here
to view our comments on PSAB Consultation Paper 3. Click here
to view all of our past submissions to PSAB.
MFOA's Submission to PSAB
MFOA, in conjunction with the Accounting and Financial Reporting Committee, have prepared comments on Exposure Draft: The Conceptual Framework for Financial Reporting in the Public Sector and Exposure Draft: Financial Statement Presentation, Proposed Section PS 1202. Our submission is based on three underlying principles:
- Promoting accountability: one major characteristic of the public sector environment is that they are accountable to the general public. Accountability is realized through federal and provincial legislation, as well as legislated bodies such as the ombudsman. As such, public sector financial reporting should be presented in a format that can be used by the lay person.
- Promoting transparency: building on accountability, public sector enterprises are often scrutinized by the public, the media, and other levels of government to provide free and transparent information. Financial reporting should elevate a public sector enterprise’s transparency to its stakeholders.
- No added complexity: public sector enterprises, and especially municipal governments, are under significant resource constraints. This has been further compounded by the ongoing pandemic. One of MFOA’s long-standing principles is that reporting requirements should not be onerous to municipal staff, and this principle applies to financial reporting. While change can be necessary, it should not create further complexity for either the creator or the user.
To access our submission, please download the pdf below.
How You Can Help
The proposed changes to PSAB's Conceptual Framework and Financial Statement Presentation have implications for the entire municipal sector. To ensure our voices are heard, we urge Treasurers/CFOs/Municipal Finance Staff to submit a letter of support to PSAB. In that vein, we have drafted a template letter for our members (word document below). If you are interested in submitting a letter of support, please do so before June 30.
How to Submit: There are two options for submission. If you are a CPA member, you can submit a word document after logging into the PSAB website. Alternatively, you can send an email to Michael Puskaric, Director of PSAB (firstname.lastname@example.org).