Standards Speak COMMENTING ON ACCOUNTING AND AUDITING STANDARD-SETTING IN CANADA ROD MONETTE
Public Sector Accounting Board Reaches for the Stars
I
F WE WERE TO HAVE TALKED ABOUT PUBLIC sector accounting standards 15 years ago, only a handful of government enti- ties in Canada would have felt the topic was relevant. These
would have been the early adopters of accounting standards — mainly provincial, territorial and federal governments. Today, almost 30,000 local governments, as well as not-for- profits and other government organizations, are on board. The Public Sector Accounting Board (PSAB) has certainly
felt this dramatic shiſt in its stakeholder community over the past decade. As public entities moved from cash to accrual accounting (e.g., accounting for derivatives and government transfers were introduced), the business of standard-setting has become more complex.
Engaging with the public Responsibilities have come with the tremendous growth in cli- entele. A standard-setter is obliged to reach out, consult, listen carefully, consider feedback and communicate effectively. PSAB makes every effort to do this, as required by due process. A Public Sector Accounting Discussion Group has recently
been created, attracting influential and broadly experienced volunteer members. It is open to the public and hears from stakeholders with unique or representative application consid- erations. The response has been very positive. Public atten- dance has been excellent, and many important stakeholder concerns have been given a venue for constructive and creative dialogue. We have covered relevant and timely topics such as accounting for retirement benefits, how to interpret the intrica- cies of government transfers and why it is important to define and articulate the public interest.
In the public interest PSAB is mandated to act in the public interest. What does this mean and how do we know if we are meeting this key objec- tive? Financial statements should be understandable and useful for assessing accountability and decision-making. Board members are professionals who understand their duty to the public. But understanding is not enough — PSAB needs to communicate its deliberations in plain language. A new
statement, called a public interest statement, is being written for new standards. It’s still early but we are hoping it helps to better define our public interest considerations.
Why PSAB matters One of the reasons why PSAB has a solid international reputa- tion is because we were among the first to implement stan- dards in such areas as consolidation, pension obligations, tangible capital assets and financial statement presentation. In terms of recognition, many might not be aware that the government of Canada has received unmodified audit opin- ions on its consolidated financial statements for almost 20
The business of standard- setting has become more complex in the past decade
years. Very few national governments have achieved this level of discipline and excellence. The progressive efforts of PSAB would not be possible without the volunteers who sit on task forces and staff members who support the board and make our due process work. Without these capable and generous people we would not be in the enviable position we are today. As PSAB chair, I have completed my first three-year term and
have been reappointed for another two-year term. In the next few years, PSAB will continue its focus on public and stake- holder engagement. Public sector standards are being devel- oped internationally by the International Public Sector Accounting Standards Board (IPSASB), where Canada plays a leadership role. As a new member of IPSASB, I will strive to ensure PSAB is more influential internationally. Read more about PSAB at
frascanada.ca/PSAB.
Rod Monette, FCPA, FCA, MBA, chair, Public Sector Accounting Board
Visit
frascanada.ca for the latest standard-setting news and information.
Sign up for The Standard at
frascanada.ca/subscribe for weekly emails that are tailored to the standard-setting topics of your choice.
MAY 2015 | CPA MAGAZINE | 13
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72