arrangement for the shared risk plan. Where there is a contractual agreement or policy for charging the net defined benefit cost for the plan to individual public sector entities within the government reporting entity, the costs should be recognized in the financial statements of each individual public sector entity. Otherwise, the net defined benefit cost would be recognized in the financial statements of the controlling public sector entity for the plan, and participating controlled public sector entities would account for the plan as a defined contribution plan in their financial statements. Proposed Section PS 3251 provides guidance on actuarial assumptions related to matters such as mortality; salaries, benefits and medical costs; and discount rate linked to funding status. Local governments and regional districts are encouraged to provide their input on this very impactful standard before November 25th. The PSAB project summary and the exposure draft can be found HERE.
BAILEY CHURCH leads the National Public Sector Accounting Advisory service line at KPMG. He has an extensive background serving the Government of Canada, provincial governments, crown corporations, municipalities, not-for-profit organizations and for-profit entities pursuing significant transactions with public sector entities. auditing matters within the public sector environment.
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