Webinar #4 –New PSAS Section PS 3450 Financial Instruments – Presentation, Disclosure and Transition / Amendments to Other Standards
June 16, 2020 – 12:00 PM – 1:00 PM
Webinar Objectives:
This webinar will explain the presentation and extensive qualitative and quantitative disclosure requirements in the new standard. In addition, this session will also discuss the specific requirements related to transition, including: what decisions municipalities will have to make, how they will record adjustments in their financial statements and any transitional relief that has been provided. Lastly, this session will inform participants about amendments to other standards as a result of new Sections PS 3450 and PS 1201.
Series Overview:
New Section PS 3450 Financial Instruments and related amendments: They will impact everyone!
Did you know that virtually every set of local government financial statements in the Province contains numerous financial instruments? If your financial statements contain, for example: cash, receivables, investments, payables, loans, or derivatives (such as interest rate or foreign exchange rate currency swaps) YOUR municipality will be affected by the new requirements! Some of the upcoming changes in include:
- The addition of a new financial statement called the statement of remeasurement gains and losses
- The introduction of fair value measurement for some public sector entities
- A significant increase in the amount of disclosure in public sector financials statements, especially with respect to the risks arising from your financial instruments and the effects from the exposure therein.
Series Objectives:
PSAB’s new accounting standard Section 3450 Financial Instruments and the related amendments to other accounting standards such as Section PS 1201 Financial Statement Presentation and Section PS 2601 Foreign Currency Translation will be adopted for all governments for fiscal years beginning on or after April 1, 2021. For most municipalities in Ontario, this change will occur in their fiscal period ending December 31, 2022.
Over 5 webinars, our team of subject matter experts will provide a high-level overview of the recognition, measurement, presentation and disclosure requirements in Section PS 3450, the changes required to financial statement presentation, and other amendments to other standards as a result. The final webinar will also provide practical steps for municipalities to manage the implications of adopting the new requirements.
What You will Learn: Questions we will look to answer in the webinar include...
- Do you know what a financial instrument, financial asset, financial liability, derivative or embedded derivative are?
- Do you know which financial instruments fall within the scope of the standard?
- Do you know how your financial statements will change?
- Do you know when fair value measurement is required or allowed?
- Do you know the methods to determine a financial instrument’s fair value?
- Do you know how to measure a financial instrument, such as a loan, at amortized cost using the effective interest method?
- Do you know how to account for transaction costs such as fees and commissions paid to agents, advisors, brokers and transfer taxes and duties?
- Do you know what a remeasurement gain or loss is and where it is presented in the financial statements?
- Do you know when you may offset a financial asset and a financial liability?
- Do you know all the new disclosure requirements related to your financial instruments?
- Do you know what quantitative and qualitative disclosures are required pertaining to exposures to risks arising from your financial instruments (e.g., credit risk, liquidity risk, market risk)?
- Do you understand the transitional provisions?
- Do you know how you treat foreign exchange gains or losses?
Other webinars in this series:
