Alert: Purchased Intangibles - Amendment to Section PS 1000 and new Guideline PSG-8

Alert: Purchased Intangibles - Amendment to Section PS 1000 and new Guideline PSG-8

In November 2020 the Public Sector Accounting Board (“PSAB”) issued amendments to Section PS 1000, Financial Statement Concepts and Section PS 1201, Financial Statement Presentation, which allow recognition in financial statements of intangibles that have been purchased in an exchange transaction.

In conjunction with this amendment, a new Guideline PSG-8 has also been issued which explains the scope of the intangibles allowed to be recognized in financial statements and provides examples of items that are not purchased intangibles.

No guidance on how to account for purchased intangibles has been provided; accounting for these items may be the subject of future PSAB projects. For the time being, reference to the asset definition, the general recognition criteria and the GAAP hierarchy is expected.

Effective Date

The amendments to the PSA Handbook are effective for fiscal years beginning on or after 1 April 2023. Earlier application is permitted. Retroactive or prospective application is allowed.

Full details on the project can be found here.


This communication contains a general overview of the topic and is current as of December 16, 2020. The application of the principles addressed will depend upon the particular facts and circumstances of each individual case. Accordingly, this publication is not a substitute for professional advice and we recommend that any decisions you take about the application or not of any of the information presented be made in consultation with a qualified professional who can address any variance that may be required to reflect your circumstances. Please contact your local MNP representative for customized assistance with the application of this material. MNP LLP accepts no responsibility or liability for any loss related to any person's use of or reliance upon this material. © MNP LLP 2020. All rights reserved. 

Contacts us

Michelle Balmer

Michelle Balmer CPA, CA

Vice President, Assurance

Michelle Balmer, CPA, CA, is a Senior Assurance Services Partner with MNP. With 14 years of experience in public practice, Michelle helps a broad range of public and privately held companies in a variety of industries. She also works on special projects, including costing studies, benchmarking and best-practice studies, operational analyses, litigation support and due diligence.

As a key member of MNP's Assurance team, Michelle has played an instrumental role in assurance policy development, implementing accounting and assurance standards firm-wide and educating assurance practitioners regarding methodologies and new pronouncements. She also provides technical advice and consultation on accounting and assurance issues, as well as on rules of professional conduct issues, to all MNP practitioners.

Michelle was certified a Chartered Accountant (CA) after obtaining a Bachelor of Commerce degree from the University of Alberta. She has been actively involved with the Institute of Chartered Accountants of Alberta, including the Chartered Accountants School of Business, in an instructional and marketing capacity. An avid volunteer, she has assisted numerous groups such as the Easter Seals of Alberta, Paralympic Sports Association and Junior Achievement of Northern Alberta.