Financial Reporting

Current situation

The Public Sector Accounting Board (PSAB) establishes generally accepted accounting principles (GAAP) for governments and government organizations in Canada. The PSAB has directed government business enterprises and government business-type organizations to follow GAAP for profit-oriented enterprises – in other words, they are to apply International Financial Reporting Standards. Other government organizations (OGOs), except government not-for-profit organizations (GNFPOs), have the option of selecting PSA standards or IFRS.

The PSA standards focus on accountability and the way that assets are used for current operations and future activities. They make a clear distinction between financial and non-financial assets and attempt to highlight how financial assets, service liabilities and non-financial assets are used to provide future services.

The following table indicates the applicable financial reporting framework by type of public sector entities: 

Federal, provincial, territorial &
local governments 		Government Organizations
Government business
enterprises
(GBEs) 		Government
not-for-profit
organizations 		Other
government
organizations
  • Main governments
  • Separate legal entity;
  • Delegated financial and operational authority;
  • Sells goods & services outside the reporting entity; and
  • Can maintain operations & meet liabilities from revenues received from outside the reporting entity
  • Normally without transferable ownership interests;
  • Organized & operated exclusively for a not-for-profit purpose; and
  • Has counterparts outside the public sector
  • Is not a government; and
  • Does not meet the criteria of a GBE, or GNFPO
↓ ↓ ↓ ↓
PSA standards IFRS Standards for
NFPOs in the
PSA Handbook		 PSA standards
or IFRS

Significant differences exist between IFRS and PSA standards in the following areas:

  • presentation of financial statements
  • disclosure
  • financial instruments
  • tangible capital assets and Intangible assets
  • retirement and post-employment benefits
  • segment disclosures

Standard-setting Activities Digest

Deloitte Publications

Deloitte IPSAS in your pocket — 2013

This guide provides information on the International Public Sector Accounting Standards (IPSAS), the main differences between IPSAS and IFRS, and a summary of the provisions of all IPSAS outstanding at February 1, 2012.

Publication date: 3/2013 | File size: 776 KB

Standard-setting Activities Digest - Public Sector Accounting Standards

File size: 627 KB

Additional Resources

Authoritative Guidance

Thought Leadership