PSAB’s Due Process Procedures
(Adopted by PSAB September 2012 and endorsed by AcSOC November 2012)
Table of Contents
OVERVIEW ....................................................................................................................3
RESPONSIBILITY OF PSAB ........................................................................................3
DUE PROCESS REQUIREMENTS ...............................................................................4
Part I of the CICA Handbook – Accounting ..............................................................4
Standards and other guidance issued by PSAB .........................................................5
SEVEN STEPS IN DUE PROCESS ...............................................................................6
Agenda setting ...........................................................................................................6
Project planning .........................................................................................................8
Task forces .................................................................................................................9
Development and publication of a statement of principles ........................................10
Review of responses and publication of an exposure draft........................................11
Development and publication of a final standard ......................................................11
Procedures after a standard is issued .........................................................................12
HOW THE DUE PROCESS IS APPLIED......................................................................13
PSAB meetings ..........................................................................................................13
Balloting and drafting ................................................................................................14
Liaison activities ........................................................................................................15
Comment letters .........................................................................................................15
Comment period.........................................................................................................15
Field visits and field tests...........................................................................................15
Effect analysis ............................................................................................................16
Information on PSAB’s website ................................................................................16
Translation .................................................................................................................17
Inquiries about due process ........................................................................................17
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Overview
1.
This document sets out the procedures that the Public Sector Accounting Board
(PSAB) follows in setting financial reporting standards and other guidance.
These procedures are described as “due process”. Due process is designed to
serve the public interest by addressing the need for transparency in and
accessibility to the developmental process, including consultation and
responsiveness to input received from all stakeholders. These procedures are
critical in maintaining the objectivity of the process and the quality of the output.
The basic ingredients of due process are information gathering, discussion and
consultation. PSAB will review this document each year.
2.
PSAB’s due process is built on its Terms of Reference and Statement of
Operating Procedures, which are agreed to by the Accounting Standards
Oversight Council (AcSOC). AcSOC is an independent body that serves the
public interest by overseeing and providing input to the activities of PSAB.
PSAB is directly accountable to AcSOC for its performance in fulfilling its
mandate, including adherence to due process.
3.
PSAB consults with AcSOC and others on its strategic direction and priorities by
discussing its preliminary agenda setting decisions and obtaining information
about the diversity of views on various financial reporting issues. AcSOC and its
committees serve as a sounding board for PSAB, and can be used to gather views
on specific issues to supplement other consultative processes at any stage of due
process. Refer to AcSOC’s Terms of Reference and Statement of Operating
Procedures for further information about its responsibilities.
4.
PSAB’s Terms of Reference and Statement of Operating Procedures specify
certain of its due process procedures. PSAB’s Statement of Operating Procedures
requires that materials it issues be provided in both official languages.
Responsibility of PSAB
5.
In accordance with its Terms of Reference, PSAB has the responsibility for
establishing standards and other guidance for governments and their
organizations. PSAB issues accounting and financial reporting standards and
guidelines as well as statements of recommended practices (other guidance), all of
which are subjected to the same due process.
6.
Government organizations can include government business enterprises, not-forprofit organizations and others. In some instances, these organizations operate
similar to enterprises. PSAB directs government business enterprises to apply Part
I of the CICA Handbook – Accounting and permits it to be applied to other
government organizations if their circumstances are best suited to applying that
source of accounting standards.
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7.
The definitions of various government organizations and the application of
different accounting standards are described more fully in the Introduction to
public sector accounting in the CICA Public Sector Accounting (PSA) Handbook.
8.
PSAB does not establish accounting standards for government business
enterprises. These organizations have characteristics similar to private sector
enterprises and PSAB directs them to Part I of the CICA Handbook – Accounting.
However, PSAB is responsible for government business enterprises and reserves
the right to establish standards and other guidance for them when deemed
appropriate.
9.
PSAB does establish separate accounting and financial reporting standards and
other guidance that apply to governments and their government organizations, as
follows:
(a) All levels of government, federal, provincial, territorial and local governments
are directed to the PSA Handbook – Accounting.
(b) Government organizations that are directed or choose to adopt the PSA
Handbook.
(c) Those government organizations that adopt the not-for-profit standards that
are set out in the “PS 4200” series of standards supported by the PSA
Handbook.
Due process requirements
Part I of the CICA Handbook – Accounting
10.
PSAB is responsible for establishing standards for governments and all of their
organizations including government business enterprises. However, PSAB has
chosen to direct government business enterprises to Part I of the CICA Handbook
– Accounting. PSAB also permits Part I to be applied by other government
organizations, where appropriate. PSAB reserves the right to make changes to this
direction in whole or in part.
11.
Part I reflects the standards issued by the International Accounting Standards
Board (IASB) known as International Financial Reporting Standards (IFRSs),
which are adopted by the Canadian Accounting Standards Board (AcSB). The
AcSB has a role in the development of IFRSs and in adopting them. This requires
the AcSB to maintain and apply its own due process procedures tailored to
fulfilling that role. In turn, PSAB relies on the AcSB’s due process procedures
when it comes to the development and finalization of those accounting standards
in Part I of the CICA Handbook – Accounting. The AcSB is accountable to
AcSOC for demonstrating compliance with due process procedures and PSAB
relies on that assessment.
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Standards and other guidance issued by PSAB
12.
PSAB sets accounting and financial reporting standards and issues statements of
recommended practices within the institutional framework agreed to with AcSOC
and expressed in PSAB’s Terms of Reference and Statement of Operating
Procedures. To that end, PSAB decides what procedures are necessary in
carrying out its due process and how those procedures should be carried out in
specific circumstances.
Transparency and accessibility
13.
PSAB makes decisions at each stage of the due process after consultations with
stakeholders and on the basis of information gathered by, or in conjunction with,
PSAB staff and its task forces. PSAB publicizes its contact information and
encourages stakeholders to communicate with it at every stage.
14.
Meeting agendas are posted before the meeting to inform stakeholders of the
topics to be discussed and decision summaries are posted subsequent to the
meetings to highlight the key decisions or aspects of the discussions.
15.
After each meeting, PSAB prepares and posts on its website PSAB Matters, a
newsletter that provides additional useful information about current issues and
events that are of interest to its stakeholders.
16.
PSAB maintains a rigorous communications plan for outreach to the public,
carrying out a number of specific activities under that plan to achieve
transparency and accessibility of its activities.
17.
Various materials are posted on PSAB’s website for the information of
stakeholders or, in the case of completed projects, are made available in a public
file.
Extensive consultation and responsiveness
18.
PSAB solicits views and suggestions through its consultations with a wide range
of interested parties and a formal process of inviting public comment on project
priorities, statements of principle and exposure drafts. PSAB may also set up
project task forces to promote discussions.
19.
PSAB members and staff hold consultations with groups of preparers, users,
auditors, academics and others to test proposals and to understand concerns raised
by affected parties. Additionally, PSAB members and staff appear at public
events to exchange views with stakeholders.
20.
PSAB listens to, evaluates and, when it considers appropriate, adopts suggestions
received during the consultations. It also discusses with stakeholders different
views on technical matters at conferences and seminars. In response to public
comments, PSAB considers alternatives to its proposals.
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21.
Comments received from interested parties as part of the consultation process are
summarized, analyzed and considered by task forces and the staff, in turn making
recommendations for PSAB to consider in its meetings. Using its website, in
particular, the project summaries, issues analysis and basis for conclusions
documents, PSAB informs the public of its position on major points raised in the
comment letters received.
Accountability
22.
PSAB can decide not to expose a position or when it has altered an exposure
draft. The Board considers whether any significant changes have occurred, if the
change is necessary to correct a problem, whether it is simply adding additional
guidance to a proposal or clarifying an existing standard.
23.
PSAB is required to explain its reasons if it decides to omit a non-mandatory step
of its consultative process. In addition, PSAB is required to explain any changes
between an exposure draft and final standard or other guidance. Explanations are
provided in basis for conclusions documents.
Seven steps in due process
24.
PSAB’s due process normally comprises seven steps, with AcSOC having the
opportunity to ensure compliance and provide input at various points throughout
the process:
(a) agenda setting;
(b) project planning;
(c) task force recruitment (optional);
(d) development and publication of a statement of principles or other similar
document (optional);
(e) review of responses to the statement of principles or other similar document
and development and publication of an exposure draft supported by an issues
analysis;
(f) review of responses to the exposure draft and development and publication of
a standard supported by a basis for conclusions document; and
(g) procedures after standards are issued.
Agenda setting
25.
PSAB evaluates the merits of adding a potential item to its agenda primarily on
the basis of the needs of users of financial statements. A project survey is posted
on the website identifying possible projects that could be undertaken.
Stakeholders are requested to identify those projects that they feel are of highest
priority. In addition, they are invited to add to the list, provide a description of the
project and an explanation as to why they believe it to be a priority.
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26.
The results of the survey are compiled by staff and presented to PSAB for its
consideration in its planning process. When considering projects for addition to
PSAB’s technical agenda, it also considers the following established agendasetting criteria.
27.
PSAB considers the significance of the issue (i.e., whether the project would
address the needs of different users), taking into account the following factors:
(a) Changes in the financial reporting environment – whether the issue is broadly
relevant, and has emerged as a result of changes in the financial reporting
environment and regulatory requirements across Canada.
(b) Pervasiveness – whether the issue is one that:
(i) affects more than a few entities and arises across Canada;
(ii) gives rise to problems that are frequent and material; and
(iii) will persist if not resolved.
(c) Urgency – whether requests have been received from stakeholders, with
reasonable justifications, that PSAB should address the issue as a matter of
priority.
(d) Consequences – whether the absence of a standard might cause users to make
suboptimal decisions.
(e) Complexity – whether the project will consume resources for an extended
period of time.
28.
After assessing the significance of an issue, PSAB considers whether:
(a) any guidance currently exists;
(b) there is a lack of comparability in financial reporting; and
(c) there is diversity in practice or standards are difficult to apply because:
(i)
they are unclear or unnecessarily complex;
(ii)
the cost of complying outweighs the benefits to users; or
(iii) the standards are out of date and the information they generate no longer
appropriately reflects economic conditions or results.
29.
PSAB also considers whether undertaking a project could increase consistency
among its existing standards and other guidance. Any decision to converge
corresponding standards is made on the basis of whether it would provide
significant benefit to the users of financial statements.
30.
After evaluating the proposals, PSAB considers the qualitative aspects of them,
taking into account:
(a) Availability of alternative solutions – whether, when an issue is addressed,
there are alternative solutions to improve the qualitative characteristics of
financial information specified in the conceptual framework, and it is likely
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that sufficient PSAB support and approval will be attainable for the standards
developed.
(b) Cost/benefit considerations – whether it is likely that the expected benefits to
users of the improved financial reporting will exceed the costs of
implementation.
(c) Feasibility – whether it is feasible to develop a technically sound solution
within a reasonable time period without awaiting completion of other projects.
31.
PSAB then considers whether there are sufficient resources to undertake a project
taking into account:
(a) Amount of additional information required – whether there is sufficient
information about the topic to form a basis for beginning the project, although
more may be needed.
(b) Availability of resources – whether there are adequate resources and expertise
available to PSAB and its staff to complete the project and undertake the
necessary due process activities.
(c) Availability of expertise outside PSAB – whether there is outside expertise
that PSAB can employ to address the issue; or others have already committed
resources to the project or have undertaken research to address the issue.
32.
PSAB may also discuss potential agenda items in the light of requests received.
The following requests are considered:
(a) requests to clarify standards;
(b) requests to resolve conflicts between standards; and
(c) requests for guidance on issues for which no relevant standard has been
established.
33.
Before PSAB’s consideration of any requests, the staff reviews the requests and
recommends, in conjunction with the Chair, whether any issues should be added
to PSAB’s agenda. On the basis of the factors described above, staff and the
Chair decide whether any specific issues are to be added to its agenda.
Project planning
34.
Project plans are prepared by the staff. The plans provide an overview of the
proposed timetable, staffing, the documents that are expected to be produced and
the due process to be followed.
35.
In planning a project, the staff divides a project into manageable components and
project milestones. Each milestone is assigned a target date of completion. The
documents to be produced for each component include drafts (or sections of
drafts) of the proposed publication (statement of principles, exposure draft or
standard).
36.
When PSAB considers potential agenda items, it may decide that some issues
require additional information before it can take a decision on whether to add the
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item to its active agenda. Such issues may be addressed as research projects on
PSAB’s research agenda. A research project normally requires extensive
background information that others with sufficient expertise, time and staff
resources could provide.
37.
When adding an item to its active agenda, PSAB also decides whether to conduct
the project alone or jointly with the AcSB. PSAB may also undertake a project
jointly with other standard setters. In each such case, it applies the same
procedures as if it were conducting the project alone.
Task forces
38.
After considering the nature of the issues and the level of interest among
stakeholders, PSAB will normally establish a task force. The Director, in
conjunction with the Chair, selects a task force for the project and the principal
draws up a project plan under the supervision of the Director. The task force
includes representative individuals who are not members of the staff, as deemed
appropriate by PSAB.
39.
PSAB establishes various task forces to provide assistance in the conduct of its
projects, in the form of information and advice based on the practical experience
and expertise of the members of those task forces. PSAB also consults with
AcSOC.
40.
PSAB may establish task forces specifically for some of its major projects when
specialized knowledge and expertise is called for. Project-specific task forces are
normally set up during the project planning stage.
41.
PSAB advertises for expressions of interest from candidates for membership on
its various task forces. The composition of a task force reflects the diversity and
breadth of interest involved in a particular area.
42.
The PSAB Chair and the Director appoint the Chair of the task force. The Chair
of the task force and the Director appoint the members of each task force with a
view to ensuring that there is a satisfactory balance of perspectives. Task force
meetings may be attended by some PSAB members and other non-project staff.
43.
PSAB sets a clear mandate and objectives for its task forces through the project
planning stage. Some task forces are asked only for advice on specific issues.
Others are asked to undertake research, gather information, discuss issues and
make recommendations for improving specific standards. Once PSAB’s
deliberations start, PSAB consults the task forces on important decisions, and
receives regular updates on the progress of projects.
44.
Meetings of task forces are scheduled in advance of the PSAB meeting.
Recommendations and comments from the task force members are included in the
materials for discussion in PSAB meetings.
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45.
The task force is supported by a PSAB staff member and is responsible for
making recommendations to the Board on the accounting and other issues set out
in the project plan.
46.
A task force will include a limited number of representative volunteers and may
include one or more staff members and consultants. A task force may also
include one or more members of PSAB as board advisors. Task forces may, when
appropriate, seek advice from PSAB members on specific topics during their
information gathering and analysis. Individual PSAB members may also seek
information from the staff.
47.
In developing recommendations, to preserve the quality of proposals, task forces
are not to seek or favour the views of individual PSAB members, and individual
PSAB members are required not to unduly influence the task force’s conclusions
outside of PSAB’s meetings.
Development and publication of a statement of principles
48.
A statement of principles is not a mandatory step in PSAB’s due process, but
PSAB may publish a statement of principles as its first document on a major new
topic as a vehicle to explain the issue, identify the alternatives considered and
solicit early comment from stakeholders. If PSAB decides to omit this step, it
will state its reasons.
49.
Typically, a statement of principles includes a comprehensive overview of the
issue, possible approaches in addressing the issue, the preliminary views of
PSAB, the rationale for those views and an invitation to comment. It is not
intended to be a draft standard. A draft of a statement of principles will normally
be developed by the task force before being reviewed by PSAB.
50.
PSAB authorizes the statement of principles on the basis of analysis drawn from
information gathered by the staff and recommendations of its task forces and
other sources.
51.
Statement of principles may result from a research project being conducted by
another party as the first stage of an active agenda project carried out by PSAB.
The research report can be used as a basis for developing a statement of
principles. Issues related to a statement of principles are discussed in PSAB
meetings and publication of such a paper is approved in accordance with the
voting rules in PSAB’s Statement of Operating Procedures.
52.
When the draft is completed and PSAB has approved it for publication, the
statement of principles is published to invite public comment. PSAB supplements
the written comment process by carrying out various communications such as
broadcast e-mails, face-to-face updates and newsletters.
53.
After the comment period has ended, the staff and task force analyzes and
summarizes the comment letters for PSAB's consideration. Comment letters are
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posted on the website. In addition, a summary of the comments received and their
disposition is included in the issues analysis that accompanies the exposure draft.
54.
If PSAB decides to explore the issues further, it may seek additional comment and
suggestions by arranging meetings with stakeholders or requesting the task force
to do additional work and address the issues raised.
Review of responses and publication of an exposure draft
55.
An exposure draft is PSAB’s main vehicle for consulting with the public. In
unusual circumstances and for a stated reason or reasons, PSAB may decide by
formal vote to forgo exposure in accordance with the voting rules in PSAB’s
Statement of Operating Procedures.
56.
Unlike a statement of principles, an exposure draft sets out a specific proposal in
the form of a proposed new standard or an amendment to an existing standard.
The development of an exposure draft begins with PSAB considering issues on
the basis of information gathered by staff and recommendations of the task force,
as well as comments received on a statement of principles and suggestions made
by PSAB’s other interested stakeholders.
57.
After resolving issues in responses to the statement of principles (if applicable) at
its meetings, PSAB instructs the staff and task force to draft the exposure draft.
When the draft has been completed, PSAB ballots the exposure draft and
publishes it for public comment.
58.
An exposure draft highlights the main features of, and requests comments on, a
draft standard or draft amendment to a standard.
59.
An exposure draft will be accompanied by an issues analysis outlining PSAB’s
response to the major issues raised by respondents to the statement of principles.
Amongst other matters, PSAB’s issues analysis will address:
(a) alternative views on the issues dealt with in the proposed standard; and
(b) the view taken by the Board with appropriate reasons for taking that position.
60.
PSAB allows an appropriate period for comment on an exposure draft, relative to
the subject matter, as clarified in paragraph 90.
61.
Comment letters are posted on the website. PSAB reviews the comment letters
received and the results of other consultations.
62.
In addition, a summary of the comments received and their disposition is included
in the basis for conclusions document when the project is completed.
Development and publication of a final standard
63.
The approval of a new standard or amendment to an existing standard is carried
out during PSAB meetings, after PSAB considers the comments received on the
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exposure draft. In deciding whether to change the standard proposed in the
exposure draft, PSAB:
(a) reviews input and advice from the task force;
(b) takes into account substantial issues that emerged during the comment period
on the exposure draft that it had not previously considered;
(c) considers all of the evidence provided to it;
(d) evaluates whether it has sufficiently understood the issues and actively sought
the views of constituents; and
(e) considers whether the various viewpoints were aired in the exposure draft and
adequately discussed and reviewed in the issues analysis provided with the
exposure draft.
64.
Changes from the exposure draft and the reasons for them are described in the
basis for conclusions document prepared when the project is completed.
65.
After resolving issues arising from the exposure draft, with the assistance of the
task force, PSAB considers whether it will expose its revised proposals for public
comment by publishing a re-exposure draft. PSAB first decides, by formal vote,
whether, in its judgment, the standard proposed in the exposure draft has been
significantly changed as a result of redeliberation of the issues in light of
comments received. When the exposure draft proposal has been significantly
changed, re-exposure is required unless PSAB decides, by formal vote, not to reexpose for a stated reason or reasons. Those reasons would be described in the
basis for conclusions document prepared when the project is completed.
66.
If PSAB exposes revised proposals, the due process to be followed is the same as
for the first exposure draft.
67.
As it moves towards completing a new standard or amending an existing standard,
PSAB prepares a basis for conclusions document that includes feedback to those
who submitted comments on the exposure draft, identifying the most significant
matters raised in the comment process and explaining how PSAB responded to
those matters.
68.
When PSAB is satisfied that it has reached a conclusion on the issues arising from
the exposure draft, it instructs the staff and the task force to draft the standard or
amendment to a standard. Finally, after the due process is completed, all
outstanding issues are resolved, and PSAB members have balloted in favour of
publication, the standard or amendment is issued, followed by publication of the
basis for conclusions document. Any dissenting views of Board members will be
included in the basis for conclusions document.
Procedures after a standard is issued
69.
After a standard is issued, PSAB members and staff continue to communicate
with stakeholders through face-to-face presentations, newsletters and other
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forums. In certain circumstances, the staff also fosters educational activities to
ensure consistency in the application of standards.
70.
PSAB carries out a post-implementation review of each new standard or major
amendment. This is normally carried out two years after the new requirements
have become effective. Such reviews consider whether a new or amended
standard has been implemented and achieved the intended objectives established
in the agenda setting and project planning stages. The reviews will also focus on
important issues identified as contentious during the development of the
pronouncement and consideration of any unexpected costs or implementation
problems encountered in practice. A review may also be prompted by:
(a) changes in the financial reporting environment and any regulatory
requirements; or
(b) comments made by PSAB, its task force members, AcSOC or stakeholders.
The review may lead to additional issues being added to PSAB’s agenda, with a
view to providing an amendment or clarification to the standard.
How the due process is applied
PSAB meetings
71.
PSAB’s discussions of technical issues take place during PSAB meetings. PSAB
meets at least four times per year. Additional meetings may be convened at the
Chair’s request.
72.
In accordance with its Statement of Operating Procedures, PSAB conducts its
meetings in private. PSAB’s practice in this regard, unlike that of other standard
setters such as the IASB, is associated with its volunteer membership.
Confidentiality of PSAB discussions is intended to protect members from undue
outside influence by allowing them to debate freely as individuals and vote
without concern for the personal consequences in their relationships with clients,
employers or business associates.
73.
Before PSAB meetings, staff members prepare data sheets. PSAB data sheets are
normally distributed to PSAB members two weeks before the PSAB meeting date.
Meeting agendas are normally posted on the website at least two weeks before the
PSAB meeting.
74.
During PSAB meetings, the staff may from time to time conduct open educational
and informational sessions. PSAB also discusses comments and suggestions
arising from information gathered by the staff, from consultations with PSAB’s
task forces and from education sessions and comment letters.
75.
Soon after the meeting, the staff summarizes PSAB’s decisions, and a decision
summary is published on the website. When project plans (including consultative
arrangements) have been discussed in the meeting, the staff updates and revises
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those plans to reflect PSAB’s decisions on the related project pages published on
the website.
Balloting and drafting
76.
The voting requirements for PSAB’s publications are as set out in its Statement of
Operating Procedures. PSAB members are required to vote according to their
own beliefs rather than the views of their firm or organization.
77.
Before a document is to be voted upon, the Chair polls members during the
meeting to gauge the level of support on a particular issue. If there is sufficient
support, PSAB members review the ballot draft. Additional ballot drafts may be
prepared if new issues arise during PSAB members’ review.
78.
The ballot draft of an exposure draft or standard is ready for balloting once PSAB
is comfortable that the major issues have been identified and addressed. PSAB
then agrees to proceed with balloting.
79.
A balloting package includes the following:
(a) a ballot form; and
(b) the ballot draft, which may be in clean form or, when it is helpful to PSAB
members, in a marked-up form showing changes from the preceding draft.
80.
Balloting is undertaken according to PSAB’s policy. Balloting takes place at the
meetings or, if necessary, subsequent to the meetings. PSAB members vote and if
the necessary votes are received, complete the ballot form to record whether they
assent to, or dissent from, publication of the ballot draft as a standard or other
guidance.
81.
PSAB members may suggest late editorial improvements to the text; depending
on the number and nature of such changes, the staff may report to the PSAB Chair
after the ballot or prepare and circulate to PSAB a post-ballot draft showing the
final changes.
82.
PSAB members who dissent from publication of an exposure draft or standard
make their intentions known during the poll at the PSAB meeting. Dissenting
opinions are expressed by the PSAB member concerned in a PSAB meeting for
the other PSAB members to hear before balloting. Dissenting opinions and
alternative views are subsequently included in the basis for conclusions document
for the final standard or amendment.
83.
The standards set by PSAB are published by The Canadian Institute of Chartered
Accountants through its electronic and paper publication services. Statement of
principles, exposure drafts and other information about PSAB activities are freely
available on PSAB’s website.
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Liaison activities
84.
Liaison activities take place throughout the due process cycle. Their purpose is to
promote co-operation and communication between PSAB and parties interested in
standard setting. Liaison is conducted at many levels within PSAB’s structure
and operations.
85.
PSAB maintains liaison arrangements with the AcSB, other national standard
setters and other bodies in Canada and globally that have an interest in financial
reporting issues.
86.
PSAB members and staff also periodically hold educational sessions, attend
meetings and conferences of interested parties, and announce major events of
related organizations on the website.
Comment letters
87.
Comment letters play a vital role in PSAB’s formal deliberative process. To give
the public timely access to the comment letters sent to PSAB, the staff posts the
letters on PSAB’s website shortly after the comment deadline.
88.
PSAB members review comment letters that are received by the mailing date of
the meeting material. The staff and task force provide PSAB members with a
summary and analysis of the comments received.
89.
To be responsive to views received in comment letters, PSAB posts on the
website, in the issues analysis and basis for conclusions documents published with
each exposure draft and final standard respectively, a summary of key issues
raised in comment letters and PSAB’s conclusions in respect of the comments.
Comment period
90.
PSAB normally allows a period of no less than 90 days for comment on its
consultation documents. For exposure drafts, if the matter is exceptionally urgent,
the document is short, and PSAB believes that there is likely to be a broad
consensus on the topic, or in the case of annual improvements projects, PSAB
may consider a comment period less than 90 days.
Field visits and field tests
91.
PSAB may use field visits to gain a better understanding of current public sector
practices and how proposed standards could affect them. When conducted at a
later stage of a project’s development, they enable PSAB to assess the cost of
possible changes in practice. Field visits are usually made before the publication
of a discussion paper, statement of principles or exposure draft. The focus of the
visits is principally for transaction-specific issues. Participants in field visits
normally include those parties affected by the proposals and may be identified by
task forces or through other consultation. Field visits are undertaken when the
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benefits are expected to exceed the costs and may be accomplished by meetings
with groups of stakeholders.
92.
Field tests normally require collaboration with interested parties that are willing to
be involved in testing a proposed standard, sometimes over an extended period.
During field tests, PSAB staff work closely with participating entities in data
collection, preparation of financial reports using the proposed standard, and
evaluation of the results of the tests. PSAB recognizes the high cost of field tests,
for financial resources and staff arrangements required from PSAB and the
participating entities, and the possibility that the tests will delay the timely
introduction of standards. As the costs may exceed any benefits, PSAB expects to
conduct field tests in rare circumstances.
Effect analysis
93.
PSAB gains insight on the effects of its standards through its consultations, both
in consultative publications (statement of principles and exposure drafts) and
communications with interested parties (liaison activities, meetings, etc.).
PSAB’s views on effect analysis questions are reflected explicitly in the issues
analysis and basis for conclusions document published with each exposure draft
and standard respectively. PSAB weighs effect considerations as a part of its
deliberation when considering and drafting its analysis. However, it is rarely
possible to make a formal quantitative assessment of the effects of standards.
94.
In forming its judgment on the evaluation of the effects of a proposed standard,
PSAB considers:
(a) the costs incurred by preparers of financial statements;
(b) the costs incurred by users of financial statements when information is not
available;
(c) the comparative advantage that preparers have in developing information,
when compared with the costs that users would incur to develop surrogate
information; and
(d) the benefit relating to accountability as a result of improved financial
reporting.
Information on PSAB’s website
95.
Publications and information related to PSAB’s due process that are freely
available on the organization's website are:
(a) current news of activities of PSAB and other developments relevant to
standards and standard setting;
(b) meeting schedules of PSAB;
(c) PSAB meeting agendas;
(d) PSAB meeting decision summaries;
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(e) statements of principles;
(f) exposure drafts of standards and amendments;
(g) comment letters on statements of principles and exposure drafts;
(h) issues analysis that accompany exposure drafts;
(i) basis for conclusion documents for completed standards and amendments;
(j) project summaries; and
(k) newsletters.
96.
PSAB also maintains a public file that archives key documents arising from due
process.
Translation
97.
The standards issued by PSAB are published in both of Canada’s official
languages and have equal authority and effect. However, the working language of
PSAB is English. Key due process documents are translated into French to
provide francophone stakeholders an opportunity to participate in the
development of standards. Input received from stakeholders in French is
translated into English for consideration by PSAB. Translation is undertaken by
qualified translators according to protocols designed to achieve quality
translations that convey the same meaning of texts in both English and French.
Inquiries about due process
98.
Questions about due process or PSAB’s adherence to the procedures described in
this summary should be addressed to PSAB’s Chair or Director.
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