PSAB AT A GLANCE

Introduction to Public Sector Accounting Standards

Introduction to Public Sector Accounting StandardsDEFINITIONS OF TYPES OF ENTITIES & GAAP FOLLOWED BY EACH WHEN PREPARING GENERAL PURPOSE FINANCIAL STATEMENTS

October 2019

Includes: governments, government components, government organizations and partnerships.

BUSINESSPARTNERSHIP (BP)

Is a partnership that has allof the followingcharacteristics:· it is a separate entity with

the power to contract inits own name and that cansue and be sued;

· It has been delegated thefinancial and operationalauthority to carry on abusiness;

· It sells goods and servicesto individuals andorganizations other thanthe partners as itsprincipal activity; and

· It can, in the normalcourse of its operations,maintain its operationsand meet its liabilitiesfrom revenues receivedfrom sources other thanthe partners.

Refer to paragraphs PS3060.11-.28 & .33 for anexplanation of thesecharacteristics.

PUBLIC SECTOR ENTITY

GOVERNMENTCOMPONENT

An integral part ofgovernment, suchas a department,ministry or fund. Itis not a separateentity with thepower to contractin its own nameand that can sueand be sued.

GOVERNMENT ORGANIZATION

Any organization controlled by a government that is a separate entity with the power to contract in its ownname and that can sue and be sued (refer to paragraphs .07-.24 in Section PS 1300, Government ReportingEntity, for an explanation of control).

GOVERNMENT BUSINESSENTERPRISE (GBE)

A government organization that hasall of the following characteristics:· It is a separate entity with the

power to contract in its own nameand that can sue and be sued;

· It has been delegated thefinancial and operationalauthority to carry on a business;

· It sells goods and services toindividuals and organizationsoutside of the governmentreporting entity as its principalactivity; and

· It can, in the normal course of itsoperations, maintain itsoperations and meet its liabilitiesfrom revenues received fromsources outside of thegovernment reporting entity.

Refer to paragraphs PS 1300.29-.31for an explanation of thesecharacteristics.

GOVERNMENT NOT-FOR-PROFIT ORGANIZATION

(GNPO)A government organization that hasall of the following characteristics:· It is a separate entity with the

power to contract in its own nameand that can sue and be sued;

· It has counterparts outside thepublic sector as defined inparagraph .02;

· It is an entity normally withouttransferable ownership interests;

· It is an entity organized andoperated exclusively for social,educational, professional,religious, health, charitable or anyother not-for-profit purpose; and

· Its members, contributors andother resource providers do not, insuch capacity, receive anyfinancial return directly from theorganization.

OTHERGOVERNMENTORGANIZATION

(OGO)

A governmentorganization thathas all of thefollowingcharacteristics:· It is a separate

entity with thepower tocontract in itsown name andthat can sue andbe sued; and

· It is neither agovernmentbusinessenterprise nor agovernment not-for-profitorganization.

PARTNERSHIP

Is not a government organizationbut is a contractual arrangementbetween the government or agovernment organization and aparty or parties outside of thereporting entity that has all ofthe following characteristics:· The partners co-operate

toward achieving significant,clearly defined common goals;

· The partners make a financialinvestment in the partnership;

· The partners share control ofdecisions related to thefinancial and operatingpolicies of the partnership onan ongoing basis; and

· The partners share, on anequitable basis, the significantrisks and benefits associatedwith the operations of thepartnership.

Refer to paragraphs .11-.28 inSection PS 3060, Interest inPartnerships, for an explanationof these characteristics).

GOVERNMENTS

Follow PSAS Follow IFRS Follow PSAS with or without PS 4200Series

Follow PSAS or IFRS(see paragraph .20)

Follow PSAS or IFRS(see paragraph .21)

Non-businesspartnerships withonly public sector

entity partners

BPs with onlypublic sector

entity partners

Follow IFRS

Partnerships or BPswith one or more

private sectorpartners

Follow standardsdetermined by the

partners

This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific

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