A new accounting standard is transforming how the public sector reflects public-private partnerships (P3s) on its financial statements.
Slated to take effect April 1, 2023, the standard is the first to guide the industry in Canada. Without the standard, public sector entities have accounted for P3 projects in various ways—with some leaving them off the balance sheet completely. The new standard ends the accounting free-for-all.
This infographic captures the business impact of the new P3 accounting standard in infrastructure projects—for both public and private sectors. While it is the public sector organization that implements the change, the standard will shape how both partners negotiate deals, structure projects, and build sustainable working relationships.
To learn how BDO’s Accounting Advisory and Financial Advisory Services can help you report on, negotiate, and prepare for your infrastructure and P3 projects, reach out to: