By Rosemary Buchanan, BBA, CPA, CA, Customer Solutions Consultant for USTI
On May 1st, 2017 the Public Sector Accounting Board (PSAB), a division of Financial Reporting & Assurance Standards Canada , released its Exposure Draft on Revenue . Comments were accepted on the draft document prior to August 15 th and the board will be reviewing those comments between September, 2017 and June, 2018 when the Exposure Draft is expected to become effective as part of the CPA Handbook. The Exposure Draft was written to address a recognized lack of guidance with respect to revenue recognition in the public sector. This deficiency has resulted in inconsistent revenue recognition between various public sector bodies, which has reduced the value of comparisons between like organizations. It was clear that a prescribed solution was needed.