ThinkTWENTY20

By Lauren Pennycook, CPA, CA

Lauren Pennycook, CPA, CA is a Principal at the Public Sector Accounting Board.

On May 10, 2021, Canada’s Public Sector Accounting Board (PSAB) issued its Draft 2022 – 2027 Strategic Plan for public comment. This document outlines the board’s proposed strategic direction over the next five years.

PSAB uses its strategic plans to set out the broad strategic objectives that help guide it in achieving its public interest mandate. The board will decide on its strategic objectives after extensive stakeholder consultation.

As part of its draft strategic plan, PSAB developed a revised mission statement and a new vision statement to help direct its activities. The board also performed an environmental scan to determine the key external factors having an impact on its stakeholders and reporting environment. The following factors were identified to help guide and inform PSAB’s strategic direction:
• The COVID-19 pandemic.
• Relevance and timeliness of accounting standards.
• General acceptance of accounting standards.
• International standards.
• Environmental, social, and governance reporting.
• Technology.

PSAB also set the following strategies in response to its environmental scan, which will shape the development of future annual plans:

Strategy #1 – Develop relevant and high-quality accounting standards
PSAB will continue to develop relevant and high-quality accounting standards in line with its due process. The board also intends to refine and enhance how it develops its standards. This will be done by exploring the use of varied project governance models and by striving to deliver timelier and more expedient guidance. In addition, PSAB will implement its new International Strategy, which should streamline work efforts and help to improve the time-to-market in the development of its standards.

Strategy #2 – Enhance and strengthen relationships with stakeholders
PSAB will build on its relationships with stakeholders by ensuring it is engaging in effective communication throughout the standard-setting process. Among other activities, this includes using technology to collaborate with its stakeholders quickly and more efficiently. The board will also focus on increasing its engagement with Indigenous Governments and exploring the use of customized reporting for different public sector entities.

Strategy #3 – Enhance and strengthen relationships with other standard setters
In line with its new International Strategy, PSAB will continue to develop and enhance its relationship with the International Public Sector Accounting Standards Board. The board will also work together with other standard setters, including the International Accounting Standards Board and the Canadian Accounting Standards Board. These relationships will help ensure that PSAB remains relevant and influential and will allow PSAB to serve its stakeholders more effectively.

Strategy #4 – Support forward-looking accounting and reporting initiatives
PSAB recognizes that ESG reporting is a significant emerging reporting issue and is committed to supporting and encouraging ESG reporting efforts. The board will also consider whether additional guidance on ESG reporting should be developed for the Canadian public sector. To ensure that PSAB remains relevant, it will continue to stay engaged in other forward-looking areas of financial reporting, such as the accounting for intangible assets.

Please read the Draft 2022 – 2027 Strategic Plan and submit feedback by October 6, 2021. PSAB is accepting comment letters or feedback received via the quick polls and open forums available through its online community platform, Connect.FRASCanada.ca