Department of Finance - Financial Reporting and Assurance

Transcription

PO Box 187
1723 Hollis Street
Halifax, NS B3J 2N3
(902) 424-7021
[email protected]
Department of Finance
Government Accounting
September 28, 2011
Tim Beauchamp
Director, Public Sector Accounting
277 Wellington Street West
Toronto, Ontario M5V 3H2
Dear Mr. Beauchamp,
RE: Amendments Resulting from Section PS 3450
Thank you for the opportunity to provide comments on the Amendments Resulting from Section
PS 3450 Exposure Draft.
We agree with the proposed amendments but suggest improved cross-referencing in order to
clarify the intended scope of PS 3040 versus PS 3450. We recommend similar cross-referencing
with respect to PS 3050. Finally, explicit transitional provisions must be provided.
1. Do you agree with amending the CICA Public Sector Accounting Handbook in the manner
outlined in this Exposure Draft? If not, identify the amendment(s) you disagree with and
the basis for disagreement, and suggest an alternate approach.
Yes we agree with the proposed amendments. However, since portfolio investments are now
addressed in two separate sections, we feel improvements are needed in order to adequately
convey the intended scope of each section. The scope paragraph of PS 3040 should explicitly
state that its focus is on portfolio investment impairments and portfolio investments with
concessionary terms. Further, proposed paragraph .03 should appear within the “purpose and
scope” section of the standard.
PS 3450 should also be amended. Presently, it makes reference to the impairment provisions in
PS 3040, but makes no mention of the other instances in which a reader should consult PS 3040
(i.e., it does not address the existence of portfolio investments with concessionary terms). To
allow for improved clarity, the recognition section of PS 3450 should briefly describe portfolio
investments with concessionary terms and direct readers to consult PS 3040 regarding the initial
recognition of such items.
Similar adjustments should be made with respect to PS 3050 – Loans Receivable. Specifically,
the scope section of PS 3050 should make reference to PS 3450. Further, PS 3450 should
describe special circumstance loans (e.g., forgivable loans, loans with concessionary terms, loans
to be repaid through future appropriations, etc.) and should direct readers to consult PS 3050 for
guidance on how to initially account for such items.
2. Are there any additional matters that need to be considered?
The Exposure Draft does not provide transitional provisions. Presumably, these revisions should
be adopted upon transition to PS 3450, but this needs to be explicitly stated.
We would be pleased to discuss any questions or comments you many have with respect to this
letter. To do so, please contact Jill Devanney ([email protected]), Rob Bourgeois
([email protected]), or the undersigned.
Regards,
Suzanne Wile, CA
Executive Director, Government Accounting
Nova Scotia Department of Finance
Cliquez ici pour soumettre
Formulaire de réponse
Pour être pris en considération,
les commentaires devront
être reçus d'ici le 14 octobre 2011
Modifications découlant de l'adoption du chapitre SP 3450
Exposé-sondage
Le CCSP invite les intéressés à formuler des commentaires sur tous les aspects des principes proposés dans l'exposé-sondage.
Ce formulaire ne vise pas à restreindre votre réponse. Chaque boîte de texte acceptera l’intégralité
de vos commentaires. Vous pouvez sauvegarder le formulaire et l’envoyer, pour examen,
à d’autres personnes de votre organisation avant de le soumettre.
Nom :
André Miville, CA, directeur général de la pratique professionnelle / Vicky Lizotte, CA, directrice de la
normalisation
Organisation :
Contrôleur des Finances - Québec
Courriel :
[email protected] / [email protected]
Commentaires généraux :
Nous sommes généralement en accord avec cet exposé-sondage puisque qu’il vise l’harmonisation avec les normes
édictées dans les nouveaux chapitres, lesquels traitent de la comptabilisation et de la présentation des instruments
financiers.
Toutefois, nous sommes d’avis que le chapitre SP 3450 INSTRUMENTS FINANCIERS devrait également contenir des
références aux autres chapitres qui traitent de l’évaluation de certains instruments financiers, tels les placements et les
prêts à conditions avantageuses.
1.
Êtes-vous d'accord avec les propositions de modifier le Manuel de comptabilité de l'ICCA pour le secteur public décrites
dans le présent exposé-sondage? Dans la négative, veuillez indiquer les modifications avec lesquelles vous êtes en
désaccord et pourquoi vous l'êtes, et proposer une autre approche.
Nous somme en accord avec la suppression du chapitre SP 3030 PLACEMENTS TEMPORAIRES qui traite des placements
temporaires, puisque les normes relatives à leur comptabilisation sont déjà traitées dans le SP 3450 INSTRUMENTS
FINANCIERS.
Par ailleurs, nous sommes d’avis que le chapitre SP 3450 INSTRUMENTS FINANCIERS devrait également faire le lien avec le
chapitre SP 3040 PLACEMENTS DE PORTEFEUILLE en ce qui a trait à l’évaluation des placements à conditions avantageuses,
étant donné que ceux-ci répondent à la définition d’instrument financier. En effet, leur évaluation initiale diffère des
recommandations du chapitre SP 3450, tel qu'il est proposé de le spécifier au SP 3040.03 révisé . Cette situation pourrait
faire en sorte d'omettre de comptabiliser l'élément subvention (l'écart d'actualisation) à la dépense, tel que cela est requis
en vertu du SP 3040.
2.
Y a-t-il, selon vous, d'autres éléments qui devraient être pris en compte?
À notre avis, la situation est la même pour les prêts. En effet, ces derniers répondent aussi à la définition d’instrument
financier. Par conséquent, un lien avec le chapitre SP 3050 PRÊTS devrait être inclus en ce qui a trait à l’évaluation des prêts
à conditions avantageuses importantes. En effet, tout comme les placements de portefeuille à conditions avantageuses,
leur évaluation initiale diffère des recommandations du chapitre SP 3450, tel que mentionné au SP 3050.20 à .25
Également, un ajout devrait être apporté au chapitre SP 3050 afin de spécifier le renvoi au chapitre SP 3450 dans le cas
d'octroi de prêts dans des conditions normales, tout comme cela est proposé dans le cas des placements de portefeuille au
présent exposé-sondage au SP 3040.03. À noter que le SP 3450.034 b) renvoie déjà au SP 3050 dans le cas de la
comptabilisation des dépréciations.
Par ailleurs, le CCSP n’a pas indiqué de dispositions transitoires pour les modifications liés à cet exposé-sondage. Bien qu'il
soit sous-entendu que cela soit à la date d'entrée en vigueur du chapitre SP 3450, il n’y a aucune indication à cet effet.
Click here to submit
Response Questionnaire
To be considered, comments must be received by
October 14, 2011
Amendments Resulting from Section PS 3450
Exposure Draft
PSAB welcomes comments on all aspects of the Exposure Draft.
This form is not intended to constrain your response. Each text box will accommodate your full comments.
You are able to save and forward this form to others in your organization for review prior to submission.
Name:
Stuart Barr
Organization:
Office of the Auditor General of Canada
E-mail:
[email protected]
General comments:
We agree with the main features of this exposure draft, with a few exceptions noted below.
1.
Do you agree with amending the CICA Public Sector Accounting Handbook in the manner outlined in this Exposure
Draft? If not, identify the amendment(s) you disagree with and the basis for disagreement, and suggest an alternate
approach.
We agree with the changes proposed in this exposure draft. However, we noted the following additional point for
consideration by PSAB.
• PS 3040.17: This paragraph makes reference to PS 3410 for investment transactions considered to be in the nature of a
grant. Given PS 3040 also applies to GNFPOs but that PS 3410 does not, we suggest the addition of a reference to Section
PS3200, the relevant standard for grants made by GNFPOs according to footnote 8 to the table found in the “Introduction
to accounting standards that apply only to government not-for-profit organizations”.
In addition to the consequential amendments to PS 1300.37-38 proposed in the exposure draft, we found a number of
other sections with references to temporary investments that should be removed as a result of the withdrawal of PS 3030
(Temporary investments). These paragraphs are listed below.
• PS 1000.60 b): “Realizable value is the amount that would be received by selling an asset. This may be used, for example,
to value temporary and portfolio investments. Market value may be used to estimate realizable value when a market for an
asset exists.”
• PS 1201.050 b): “temporary investments” should be removed
• PS 1201.052: “Cash and cash equivalents are defined in paragraphs PS 1201.104-.105. Accounting and reporting for those
financial assets that are financial instruments, including derivatives, is outlined in FINANCIAL INSTRUMENTS, Section PS
3450. Information to describe the nature and terms of a government's loans is outlined in LOANS RECEIVABLE, Section PS
3050. Information to describe a government's investments is outlined in TEMPORARY INVESTMENTS, Section PS 3030,
PORTFOLIO INVESTMENTS, Section PS 3040, and INVESTMENTS IN GOVERNMENT BUSINESS ENTERPRISES, Section PS 3070.
Investments in government business partnerships are dealt with in GOVERNMENT PARTNERSHIPS, Section PS 3060.
Information to describe the nature and terms of a government's investments includes the carrying amounts and the
method of valuation. Inventories for resale and other assets held for sale are items that are held for sale in the ordinary
course of operations and, therefore, are expected to provide resources to discharge existing liabilities or finance future
operations.”
• Introduction to accounting standards that apply only to government not-for-profit organizations: the table on page 2
currently contains a reference to Section PS 3030.
2.
Are there any additional matters that need to be considered?
Response to PSAB Exposure Draft – Amendments for financial instruments
October 14, 2011
Our responses to your exposure draft are below:
1. Do you agree with amending the CICA Public Sector Accounting Handbook in the manner outlined
in this Exposure Draft? If not, identify the amendment(s) you disagree with and the basis for
disagreement, and suggest an alternate approach.
We agree with the amendments in general, but have concerns with some specific amendments.
•
The establishment of paragraph .11A has linked the guidance for persistence of a condition
indicating impairment to the statement that disappearance of an active market. This, with
the removal of the word “however” may lead to a restrictive reading that the second
sentence in .11A only relates to situations where active markets have disappeared.
Also, the special treatment provided for the disappearance of an active market is not
necessary. While it is true that the conditions that caused the active market to disappear
might not automatically mean the investment is impaired, the same could be said of any of
the conditions listed in .11. However, the standard previously and correctly considered a
loss of an active market due to suspension of trading to be an indicator of impairment
because conditions that lead to suspension of trading often also raise questions about the
future value of the investments (consider the issues that led to a loss in active market for
asset-backed commercial paper).
We suggest that (d) suspension of trading in securities be replaced by (d) disappearance of
an active market for the securities, as a condition that would require an evaluation of
whether impairment exists. As with any other condition on the list, judgment would be
applied on whether the condition indicates a loss in value and whether this loss is an other
than temporary decline.
We also suggest that the guidance on conditions persisting for 3-4 years remain in
paragraph .11 at the bottom of the list of conditions. It is unclear what is the need for a
separate paragraph .11A.
•
With the adoption of the fair value hierarchy disclosure in 3450, the disclosures of
estimation techniques used (previously required by 3040.33) appear now to be removed.
This is unfortunate as financial statement users may need more information than just the
amount of assets and liabilities subject to estimation techniques, but also an understanding
of the basis for these estimates. IFRS is adopting disclosure requirements for these
estimation techniques. It appears that while PSAB is increasing the reliance on fair value
techniques for measuring these financial instruments, it is reducing the disclosures required.
• The definitions proposed for the amended section 3040, in conjunction with requirements of
1200/1201 are more restrictive than the definitions used in section 3450. It is increasingly
common for investment portfolios to include real estate held and managed for rental income
and growth in value. Such investments are not for consumption in the normal course of
operations and could be sold to finance future operations or discharge liabilities. Therefore,
they may be considered financial assets under the definition in 3450. However, even though
they may be managed as part of an investment portfolio, they would appear to be excluded
from section 3040 because they are not investments in an “organization”. Also, section 1201.62
appears to direct that such assets be classified in the financial statements as non-financial
assets. We suggest that the word “organization” be removed from the definition of a portfolio
investment, and that 1201 be amended to match the definition of financial asset to that used in
section 3450, to make it clearer that portfolio investments are not only investments in
organizations, and may not inherently be financial instruments as they are usually
contemplated.
• We suggest that amendments for section 3040.05 remove the requirement that cost be reduced
for dividends received in excess of the pro-rata share of post-acquisition income. This
requirement has limited application as it would not be possible to determine post-acquisition
income for typical portfolio investments (difficulty in splitting reported income between preand post-acquisition; potential for there to be multiple acquisition dates), or infeasible for
portfolios with potentially thousands of separate investments. The requirement might be
applicable for investments where significant influence exists over the entity invested in, as a
governmental unit may need this influence to obtain the required information to make this
adjustment. But lacking a definition for this level of influence, it may be best to simply remove
the requirement.
• The definition of financial asset in section 3450 may not include endowment assets (principal
cannot be spent so cannot be used to discharge debt, though income may be used to fund
programs specified in the endowment). The definition may also not include trust funds under
administration. Standards could be clearer on whether endowment assets are financial or nonfinancial assets, and whether they should be valued in accordance with sections 3450 and 3040.
Also, guidance could be provided on how trust funds under administration should be valued for
disclosure in the financial statements.
Thank you for the opportunity to comment.
Sincerely,
Wayne Morgan, PhD, CA, CISA
Office of the Auditor General of Alberta
October 14, 2011
Exposure Draft
Name:
Melanie Joseph, CA
Organization:
BDO Canada LLP
E-mail:
[email protected]
General comments:
Overall we agree with the changes proposed in the exposure draft, with the few exceptions noted below.
1.
approach.
No, we do not agree entirely. In paragraph 11 of PS3040 you indicate that when a condition, indicating that an impairment
in value of a portfolio investment may have occurred, has persisted for a period of three or four years, there is a general
presumption that there has been a loss in value which is other than a temporary decline.
The period of three or four years does not appear elsewhere in other section and it could be too long to recognize
impairment if we compared it to other frameworks in the Handbook. We would suggest a year is an appropriate period for
the public sector.
Second, in paragraph .13 of the same standard, you indicate that, for the purposes of calculating a gain or loss on the sale
of a portfolio investment, the cost of the investment should be calculated on the basis of the average carrying value of the
portfolio investment as measured in relation to cost or amortized cost. "In relation to cost or amortized cost" should not be
indicated since per PS 3450.015 it specifies that the investment could be measured at fair value or cost or amortized cost.
Fair value is used for investments quoted in an active market. So it is confusing if you put cost or amortized cost.
Lastly, paragraph 5 of PS3040 says that dividends received in excess of prorata income are to be deducted from cost of the
investment not recognized as income. We do not see how organizations would be able to track this if they hold a large
number of investments. For example, how are they going to know if the dividends paid by a public company exceeds their
prorata share of net income? We would suggest that this should be moved to one of the indicators of impairment in
paragraph 11.
2.
No, there are no additional matters that need to be considered.
Provincial Auditor Saskatchewan
1500 Chateau Tower
1920 Broad Street
Regina, Saskatchewan
S4P 3V2
Phone: (306) 787-6398
Fax: (306) 787-6383
Web site: www.auditor.sk.ca
Internet e-mail: [email protected]
October 14, 2011
Mr. Tim Beauchamp, Director
Public Sector Accounting
The Canadian Institute of Chartered Accountants
M5V 3H2
TORONTO, ON
Dear Mr. Beauchamp:
Re:
Amendments Resulting from Section PS 3450 - Exposure Draft (July 2011)
Overall, we agree with the proposals in the exposure draft. Following are our responses to the
specific questions raised.
1. We agree with amending the CICA Public Sector Accounting Handbook in the manner
outlined in the Exposure Draft. We agree that the distinction between temporary and
portfolio investments should be removed. We agree that temporary investments that are not
cash equivalents should be accounted for as portfolio investments. We are concerned with
the wording in paragraph .06 and suggest that the word "may" be replaced with "should", i.e.
a government or public sector entity should disclose information about its designated assets
as outlined.
2. Additional matters that need to be considered:
a. PS1000 (paragraph .60) and PS1201 (paragraphs .050 and .052) still refer to
temporary investments and these references should be removed. Also, the
introduction to the PS4200 series (government not-for-profits) still contains a
reference to PS3030 which should be removed.
b. A government or public sector entity may own in excess of 20% but less than a
control position of the total voting shares (equity instruments) of an investee, and
to this extent may have the ability to participate in the investee's financial and
operating policies. Currently, this type of long-term investment does not seem to
fit within PS3060 government partnerships and appears to fall within the
proposed PS3040.02 definition of "portfolio investment". Proposed PS3040.05
reinforces the use of amortized cost as the basis of measurement for this type of
ownership.
We question whether the basis of measurement (i.e., amortized cost) and lack of
disclosure requirements for these ownership-type of investments appropriately
.../2
Mr. Tim Beauchamp
October 14, 2011
Page 2
reflects the financial risks and rewards of these arrangements. Other financial
reporting frameworks (e.g., ASPE Section 3051, IAS 28) use a different basis of
measurement (i.e. the equity method) to account for the financial risks and
rewards. PS4250.40, while it does not prescribe a different basis of
measurement, at least requires disclosure of these types of relationships. We
suggest PSAB reconsider whether these types of share ownership meet the
proposed definition included in PS3040.02.
Yours truly,
Bonnie Lysyk, MBA, CA
Provincial Auditor
ND/dd
October 14, 2011
Exposure Draft
Name:
Gisele Simard
Organization:
Alberta Treasury Board
E-mail:
[email protected]
General comments:
Thank you for the opportunity to comment. Subject to our comments in (1) below, we are generally supportive of the
proposals.
1.
approach.
1. We agree with the proposed replacement of the term "temporary investments" with "cash equivalents".
2. With the introduction of FINANCIAL INSTRUMENTS, Section PS 3450, we suggest the need for continuation of Section
3040 - PORTFOLIO INVESTMENTS should be reviewed. The term "portfolio investments" is currently used in the PSA
Handbook only and does not appear to be well understood by some government financial statement users. The
paragraphs dealing with "Loss in value of portfolio investment , .07-12 " and "Portfolio investments with concessionary
terms, .15-.24" can be moved to sections PS 3450 and PS 3410 (Government Transfers).
2.
Some guidance regarding transitional provisions for implementation of proposals may be required.
October 14, 2011
Exposure Draft
Name:
Ron Williams, CA (Comptroller General of Finance)
Organization:
Government of Newfoundland and Labrador
E-mail:
[email protected]
General comments:
1.
approach.
The withdrawal of TEMPORARY INVESTMENTS, Section PS 3030 and the removal of the distinction between temporary and
portfolio investments is supported. However, I would like to note that in removing PS 3030 there will be no direct link to
guidance for items that may have been included in temporary investments that are now to be treated as cash equivalents.
The guidance is only highlighted in the main features of the Exposure Draft, not in the amendments of PS 3040. As such,
those preparing the financial statements will not have a direct reference to apply the guidance in FINANCIAL STATEMENT
PRESENTATION, Section PS 1201.105. While it may be understood that this guidance would normally be derived from PS
1201 (or PS 1200 previously), in removing PS 3030 it may need to be explained. If this reference is not deemed appropriate
to be included in PS 3040, it is recommended that it be at a minimal included in the highlight summary that would
incorporate these amendments into the PSA Handbook. In addition, the reference provided in this Exposure Draft (PS
1201.105) is in relation to the reporting of cash flow; it should reference PS 1201.052 that deals with reporting of financial
position and directs the reader to PS 1201.105 for the definition of cash equivalents.
There is concern that the definition of the cost method has been replaced with the definition of amortized cost. PS 3040 is
to deal with portfolio investments that can be allocated, for measurement purposes, to either the fair value category or the
cost or amortized cost category. As such, it does not appear appropriate to remove the cost method from the definitions.
To further the argument that the definition of cost should remain in PS 3040, it is to be noted that the proposals suggest
using cost as well as amortized cost to replace carrying value. The proposal to modify PS 3040.03 by removing the
reference to account for portfolio investments by the cost method and replacing it with guidance to measure and
recognize in accordance with PS 3450 is not considered appropriate unless the section retains cost as a definition.
In relation to the definition of amortized cost, there is concern the definition gives the impression that any reduction
(directly or through the use of an allowance account) in relation to impairment or uncollectibility would be directly
reflected in the cost. Currently, the financial statement presentation for investments would treat the associated allowance
as a separate line from investment cost. Clarification is required as to how this aspect of the definition of the amortized
cost method would be presented in the financial statements.
The proposal to remove the definition of dividends from PS 3040 does not appear appropriate. This is a concept that
relates to portfolio investments and the definition is not included in PS 3450. Further, the proposals add the accounting
requirements that relate to dividends (that was included in the former definition of the cost method) to paragraph PS
3040.05. If the accounting treatment is considered necessary, then the definition should not be removed.
It is considered appropriate to align the definition of the effective interest method in PS 3040 to the definition in PS 3450.
However, there is concern in relation to retaining the ability of calculating amortization in a rational and systematic manner
using methods such as straight-line for investments under the cost method. In particular, the amendment specifies that
the effective interest method is used when amortizing an investment discount to revenue. Prior to this amendment, PS
3040 indicated that the effective interest method was the preferred method of amortizing the investment discount to
income per PS 3040.20. However, the proposed modifications to PS 3040.19 and .20 remove the option of using a rational
and systematic manner to calculate amortization and the ability to use methods such as straight-line amortization. As
portfolio investments can be included in the cost category, these modifications to PS 3040 are not supported as such
options should be available in addition to the effective interest method.
While there is no significant concern in replacing the references to “carrying amount” and “carrying value” with “cost or
amortized cost” within the requirements that apply when accounting for the loss in the value of a portfolio investment, it is
noted that it is not applied consistently. In particular, there remains reference to carrying value in paragraph .12. Further,
clarification is sought as to why this replacement of terminology has not been applied to the whole of PS 3040.
2.
If the proposal to withdraw TEMPORARY INVESTMENTS, Section PS 3030 is approved ; there would have to be consideration
and subsequent amendment to any section that contains a reference to temporary investments. Such references are
included in FINANCIAL STATEMENT CONCEPTS, Section PS 1000 and FINANCIAL STATEMENT PRESENTATION, Section PS
1201.
In relation to PS 1201.105, the details included to illustrate cash equivalents should be modified to remove any time limit in
order to properly reflect modern cash equivalent options. There are investments that would be considered cash
equivalents that have a maturity beyond the three months noted in this paragraph. Cash equivalents are short-term highly
liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes
in value; these are the aspects that should be considered in determining the appropriate accounting. Including
illustrations in the standards, as in this case, sometimes do not support application of professional judgement in
considering the substance of certain elements or transactions when interpreting and applying accounting standards.
Deloitte & Touche LLP
2 Queen Street East
Suite 1200
Toronto ON M5C 3G7
Canada
Tel: 416-601-6150
Fax: 416-601-6151
www.deloitte.ca
October 14, 2011
Toronto, ON M5V 3H2
Dear Mr. Beauchamp,
Re: Amendments Resulting from Financial instruments, Section PS 3450
We appreciate the opportunity to respond to the Exposure Draft on Amendments Resulting from Financial
instruments, Section PS 3450.
1.
Do you agree with amending the CICA Public Sector Accounting Handbook in the manner outlined in this
Exposure Draft? If no, identify the amendment(s) you disagree with and the basis for disagreement, and suggest
an alternate approach.
We generally agree with the amendments to the CICA Public Sector Accounting Handbook, as outlined in this
Exposure Draft.
However, we identified that the recognition and measurement of interest bearing receivables, such as
guaranteed investment certificates, which appear to be receivables by nature do not appear to meet the amended
definition of portfolio investments. These interest bearing receivables are recognized at cost in accordance with
Loans Receivable, Section PS 3050. We believe that it is more appropriate for public sector entities to recognize
interest bearing receivables at either amortized cost or at fair value and therefore recommend an amendment to
Loans Receivable, Section PS 3050.
2.
This exposure draft includes a proposal to withdraw Temporary investments, Section PS 3030 from the CICA
Public Sector Accounting Handbook. In the highlights section of the Exposure Draft, it states that temporary
investments that are not cash equivalents, as described in Financial Statement Presentation, paragraph PS
1201.105, will be accounted for as portfolio investments. Although Portfolio Investments, Section PS 3040, has
been amended, it does not exclude cash equivalents. If Section PS 3040 is meant to exclude cash equivalents,
then guidance with respect to the recognition and measurement of cash equivalents is absent from the CICA
Public Sector Accounting Handbook. We encourage PSAB to consider providing guidance around the
recognition and measurement of cash equivalents.
As a result of the amendments contained in this Exposure Draft, the guidance with respect to the definition of
portfolio investments and impairment continues to be contained within Section PS 3040, whereas remaining
guidance with respect to recognition, measurement, derecognition, presentation and disclosure of portfolio
investments is contained in Section PS 3450. Splitting the guidance on portfolio investments between two
October 14, 2011
Page 2
discrete handbook sections may make application of this guidance difficult and cumbersome for users. We
encourage PSAB to consider moving the guidance currently contained within Section PS 3040 into PS 3450.
We would be pleased to discuss any questions or comments you many have with respect to this letter. To do so,
please contact Paula Jesty (416-643-8787), Cindy Veinot (416-643-8752) or the undersigned.
Yours truly,
Thomas Kay
National Professional Practice Director
Deloitte & Touche LLP
Formulaire de réponse
Pour être pris en considération,
les commentaires devront
être reçus d'ici le 14 octobre 2011
Modifications découlant de l'adoption du chapitre SP 3450
Exposé-sondage
Le CCSP invite les intéressés à formuler des commentaires sur tous les aspects des principes proposés dans l'exposé-sondage.
Ce formulaire ne vise pas à restreindre votre réponse. Chaque boîte de texte acceptera l’intégralité
de vos commentaires. Vous pouvez sauvegarder le formulaire et l’envoyer, pour examen,
à d’autres personnes de votre organisation avant de le soumettre.
Nom :
Jean Monfet, directeur général des finances municipales
Organisation :
Ministère des Affaires municipales, des Régions et de l'Occupation du territoire
Courriel :
[email protected]
Commentaires généraux :
1.
Êtes-vous d'accord avec les propositions de modifier le Manuel de comptabilité de l'ICCA pour le secteur public décrites
dans le présent exposé-sondage? Dans la négative, veuillez indiquer les modifications avec lesquelles vous êtes en
désaccord et pourquoi vous l'êtes, et proposer une autre approche.
OUI
2.
Y a-t-il, selon vous, d'autres éléments qui devraient être pris en compte?
Selon l'exposé-sondage, la distinction entre les placements temporaires et les placements de portefeuille serait supprimée.
Les placements temporaires qui ne sont pas inclus dans les équivalents de trésorerie (parce que d'une durée de moins de
trois mois à l'émission) seraient présentés comme placements de portefeuille à l'état de la situation financière. Ce
changement serait appliqué en même temps que le chapitre SP 3450 sur les instruments financiers.
En vertu des dispositions transitoires du chapitre SP 3450, les organismes publics auront à appliquer celui-ci dans les
exercices ouverts à compter du 1er avril 2012, alors que les gouvernements auront à le faire dans les exercices ouverts à
compter du 1er avril 2015.
Nous croyons qu’il serait approprié, par souci d’uniformité, que toutes les entités du secteur public d’une même juridiction
puissent supprimer la distinction entre les placements temporaires et les placements de portefeuille au cours du même
exercice financier, peu importe le moment où elles doivent commencer à appliquer les normes sur les instruments
financiers. Nous proposons donc que le CCSP ajoute expressément dans les normes modifiées découlant de l’adoption du
chapitre SP 3450 la possibilité de présenter les placements temporaires comme placements de portefeuille de façon
anticipée sans attendre l'application des instruments financiers.
October 14, 2011
Exposure Draft
Name:
Terry Paton
Organization:
Government of Saskatchewan
E-mail:
[email protected]
General comments:
1.
approach.
The amendments to Section PS 3040, Portfolio Investments, as they stand, are reasonable, however, the section could have
been withdrawn and the guidance merged with the new Section PS 3450, Financial Instruments, as was done for Section PS
3030 Temporary Investments.
2.
Section PS 3040.05 states "when a government does not control the organization that it has invested in, as is the case
when it acquires an equity instrument that is a portfolio investment, it is inappropriate for the government to include any
portion of the undistributed income of the investee in the operating results of the government." Currently, however, there
are no guidelines included in Section PS 3040 for accounting for significant influence (controlled) equity investments. We
understand PSAB's concern about defining 'significant influence' however, it seems extremely appropriate that where
significant influence exists on the basis of share ownership, that equity accounting be allowed for these investments. We
recommend PS 3040.05 be amended to incorporate accounting for significant influence through share ownership into the
portfolio investment guidance.
Finance
Comptroller’s Division
Comptroller’s Office
715 – 401 York Avenue
Winnipeg, Manitoba R3C 0P8
Phone: 945-4919
Fax:
948-3539
E-mail: [email protected]
October 25th, 2011
Toronto, Ontario
M5V 3H2
Dear Mr. Beauchamp:
Re: Amendments Resulting from Section PS 3450
Thank you for the opportunity to respond to the exposure draft. We apologize for the lateness and
hope that it could still be included in the review.
As requested, the Province of Manitoba (Province) has responded to your specific questions in the
Exposure Draft (ED).
1. Does the Province agree with amending the CICA Public Sector Accounting Handbook in the
manner outlined in this Exposure Draft? If not, identify the amendment(s) you disagree with
and the basis for disagreement, and suggest an alternate approach.
In general, the Province disagrees with the principle that fair value accounting is appropriate for
governments. However, since PS 3450 has been approved by the Board, the Province agrees
with the amendments to portfolio investments outlined in the Exposure Draft. Under PS 3450
investments in equity instruments that are quoted in an active market have to be measured at fair
value. Debt instruments with premiums or discounts have to be measured at amortized cost and
interest revenue must be measured under the effective interest method. Portfolio investments do
not include derivatives.
The Province agrees that the distinction between temporary and portfolio investments should be
removed. Temporary investments that are not cash equivalents should be accounted for as a
portfolio investment.
The Exposure Draft states that portfolio investments should be recognized and measured in
accordance with PS 3450. However the Exposure Draft does not include any transitional
provisions for the amendments to PS 3040 – Portfolio Investments.
The Province is currently not aware of additional matters that may need to be considered.
Yours truly,
Betty-Anne Pratt, CA
Provincial Comptroller
On Behalf of the Province of Manitoba

Department of Finance - Financial Reporting and Assurance

Transcription

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