The Public Sector Accounting Board (PSAB) creates the Handbook that is the source of generally accepted accounting principles (GAAP) used to prepare public sector financial statements in Canada. The current Handbook limits what can be reported by excluding natural assets from recognition as Tangible Capital Assets in the standards. There is currently a very important opportunity to provide input into the process to update PSAB standards to address this and other issues. The outcome of this will impact stakeholders for decades.

PSAB is accepting comments on the following until November 28, 2018:

1) Statement of Concepts, “A Revised Conceptual Framework for the Canadian Public Sector”. This document proposes updated concepts underlying accounting and financial reporting standards. Once final it would be the new foundation on which standards are developed and professional judgment is applied;
2) A Statement of Principles, “A Revised Reporting Model for the Canadian Public Sector”. This proposal is the revised reporting model that PSAB is considering and consulting on.

We encourage you to provide input to PSAB by the deadline, with a focus on supporting and enabling the consideration of natural assets in public sector accounting.

If you are considering input and wish to discuss with the Municipal Natural Asset Initiative then please do not hesitate to let them know.