Public Sector Accounting Standards (PSAS) are accounting rules specifically designed for governments and public sector organizations in Canada, established by the Public Sector Accounting Board (PSAB). Unlike private sector accounting focused on profitability, PSAS addresses how governments report on their stewardship of public resources. PSAS covers how to record and report assets, liabilities, revenues, expenses, and government transfers. All Canadian municipalities must follow PSAS in preparing their financial statements, ensuring consistency and comparability across local governments. PSAS also addresses unique government situations like infrastructure asset accounting and inter-governmental transfers.