Tipos de campaña

6.1 Government transfers

Handbook section approved December 2010; to be issued March 2011.

The objective of this project is to address and clarify government transfer recognition criteria for recipients and transferring governments.

The key concepts in the exposure draft:

Accounting – transferring entity

A transferring entity recognizes the expense when the transfer has been authorized and the eligibility criteria, if any, have been met. Authorization means that the appropriate authority has been exercised and the enabling legislation is in force, or that the transferor is demonstrably committed to the transfer before the financial statement date and the enabling legislation comes into force in the stub period.

Accounting – recipient entity

The recipient entity recognizes revenue when the transferor has authorized the transfer and the recipient has met the eligibility criteria, except when, and to the extent that, the transfer gives rise to an obligation that meets the definition of a liability for the recipient government in accordance with section PS 3200, “Liabilities.”The determination of whether a liability exists would be influenced by stipulations made by the transferor, or a combination of those stipulations and the actions and communications of the recipient. Authorization means that the appropriate authority has been exercised by the transferor and the enabling legislation is in force. Transition

Auditor General of British Columbia | February 2011

Summary Comparison of Canadian Public Sector Accounting Standards with the CICA Handbook Part V 33 6.2 Financial instruments

Handbook section expected to be approved March 2011.

The objective of this project is to develop a public sector accounting standard that addresses the recognition, measurement, presentation and disclosure of financial instruments, including embedded derivatives. Currently under PSAB, derivatives are not recognized and investments are recorded at cost.

PSAB reviewed the responses of the September 2009 Exposure Draft and issued a supplementary exposure draft in November 2010 proposing amendments to section PS 1200, “Financial Statement Presentation.” This exposure draft contains a presentation model that reports

remeasurement gains and losses in a new statement separate from the statement of operations.

The key concepts in the exposure drafts:

Accounting

• financial instruments are measured at fair value or cost or amortized cost;

• derivatives and portfolio investments in equity instruments that are quoted in active markets should be measured at fair value;

• hedge accounting and synthetic instrument accounting will not be permitted;

• when an entity manages and reports on the performance of a group of financial assets or liabilities on a fair value basis, it may also account for those assets or liabilities on a fair value basis; and

• interest should be recorded using the effective interest rate method. Presentation and disclosure

A new statement of remeasurement gains and losses is introduced and will report:

• unrealized gains and losses associated with financial instruments in the fair value category;

• unrealized foreign currency exchange gains and losses (see section 6.3);

• amounts reclassified to the statement of operations upon derecognition or settlement; and

• other comprehensive income when a reporting entity includes the result of government business enterprises and government business partnerships in the reporting entity’s financial statements.

Realized gains and losses will be separately reported in the statement of operations. When a gain or loss is realized, previously recognized remeasurement gains or losses are deducted from the remeasurement gain or loss for the year.

Auditor General of British Columbia | February 2011

Summary Comparison of Canadian Public Sector Accounting Standards with the CICA Handbook Part V 34

Additional disclosures would be required to enable users to evaluate the nature and extent of risks arising from financial instruments (including disclosure of credit risk, liquidity risk and market risks).

Transition

PSAB expects the final section on financial instruments to be approved by March 2011. It is expected that the section will apply to fiscal years beginning on or after April 1, 2012. Early adoption is encouraged. Any adjustment to the carrying amount is recognized as an adjustment to accumulated surplus/deficit at the beginning of the fiscal year in which this section is initially applied.

6.3 Foreign currency translation

Handbook section expected to be approved March 2011.

The objective of this project is to amend section PS 2600 taking into consideration the final recommendations of the Financial Instruments project (section 6.2) and the conceptual framework to ensure consistent accounting standards.

PSAB reviewed the responses of the September 2009 Exposure Draft and issued a supplementary exposure draft in November 2010 proposing amendments to section PS 1200, “Financial Statement Presentation.” This exposure draft contains a presentation model that reports

remeasurement gains and losses in a new statement separate from the statement of operations.

The key concepts in the exposure drafts:

Accounting

• the reporting entity’s functional currency is presumed to be the Canadian dollar;

• transactions made in a currency other than Canadian dollars are translated applying the exchange rate in effect on the date of the transaction; and all monetary items and those non-monetary items included in the fair value category are translated at the exchange rate at the balance sheet date;

• hedge accounting and synthetic instrument accounting will not be permitted; and

• exchange gains and losses on long-term monetary items will be recorded in the current period (deferral and amortization over the life of the monetary item will no longer be permitted).

Presentation and disclosure

Unrealized foreign currency exchange gains and losses will be reported in the statement of remeasurement gains and losses (see section 6.2). Realized gains and losses will be separately reported in the statement of operations. When a gain or loss is realized, previously

Auditor General of British Columbia | February 2011

Summary Comparison of Canadian Public Sector Accounting Standards with the CICA Handbook Part V 35 recognized remeasurement gains or losses are deducted from the remeasurement gain or loss for the year.

Transition

PSAB expects the final PSAB Handbook to be approved by March 2011. It is expected that the section will apply to fiscal years beginning on or after April 1, 2012. Early adoption is encouraged. Any adjustment to the carrying amount is recognized as an adjustment to accumulated surplus/deficit at the beginning of the fiscal year in which this section is initially applied.

6.4 Related party transactions

A statement of principles is expected in March 2011, with an exposure draft in September 2011 and the final handbook section in March 2012. The objective of this project is to issue a new accounting standard that defines a related party in the context of government and government organizations, describes the disclosures required, and addresses recognition and disclosure of appropriations.

6.5 Appropriations

A statement of principles is expected to be approved in March 2011, with an exposure draft in September 2011 and the final handbook section in March 2012.

The purpose of this project is to develop an accounting standard that addresses recognition and disclosure of appropriations received or receivable by an entity from its controlling government.

6.6 Amalgamations and restructuring

A statement of principles is expected in June 2011, with an exposure draft in March 2012 and the final handbook section in December 2012. Accounting for amalgamation and restructuring activities is not specifically addressed in the PSAB Handbook in situations where an acquirer cannot be identified. In practice in these situations, the continuity-of-interest method has been used in the public sector. The objective of this project is to issue an accounting standard that addresses the recognition, measurement and disclosure requirements that are unique to amalgamation and restructuring.

Auditor General of British Columbia | February 2011

Summary Comparison of Canadian Public Sector Accounting Standards with the CICA Handbook Part V 36 6.7 Assets

A statement of principles is expected June 2011, with an exposure draft in March 2012 and the final handbook section in December 2012. The objective of this project is to issue one or more accounting standards for assets, contingent assets and contractual rights that address:

• the definition of assets, contingent assets and contractual rights; and

• recognition, measurement and disclosure of assets, contingent assets and contractual rights. 6.8 Revenue from exchange transactions

A statement of principles may be issued in September, depending on the results of the International Accounting Standards Board (IASB) revenue recognition project.

The objective of this project is to address the recognition and disclosure of revenue from exchange transactions. The IASB currently has a project on revenue recognition. The purpose of this project is to monitor the development and assess the applicability of the IASB project to the public sector.

PSAB will continue to monitor the development of the IASB’s revenue recognition project to consider whether this project should lead to development of a standard in the PSAB Handbook.

6.9 Financial statements for government organizations Project on hold

The objective of this project is to amend PSAB standards with terminology that includes public sector reporting entities, and to issue a guideline to clarify appropriate financial statement presentation for government reporting entities.

Separate projects on related party transactions (6.4) and appropriations (6.5) have been started, arising from initial feedback on this project. The project is currently on hold pending availability of staff resources.