IPSASB Staff issued this Q&A to provide insights into the reasons for developing the Conceptual Framework, the development process, its role, its update and its relationship with the IASB’s Conceptual Framework.
The International Public Sector Accounting Standards Board® (IPSASB®), developer of IPSAS®, international accrual-based accounting standards for use by governments and other public sector entities around the world, has published an updated chapter of its Conceptual Framework, which establishes the concepts that are applied in developing IPSAS and Recommended Practice Guidelines (RPGs) and are applicable to the preparation and presentation of public sector entities’ general purpose financial reports. The Conceptual Framework enables the IPSASB to ensure the consistency of its standard-setting by strengthening the linkage between IPSASs. Additionally, the transparency of the concepts underpinning the development of IPSASs and RPGs enhances the IPSASB’s accountability.
The updated chapter, Chapter 3, Qualitative Characteristics, completes the limited scope project to improve its Conceptual Framework for Financial Reporting by Public Sector Entities, which also included:
Chapter 5, Elements in Financial Statements
Chapter 7, Measurement of Assets and Liabilities in Financial Statements
The updated chapters have been informed by the IPSASB’s experience using the Conceptual Framework since its approval in 2014, and by global developments, notably the International Accounting Standards Board’s publication of a revised Conceptual Framework for Financial Reporting in 2018.
“As the IPSASB enters its next strategic phase, the Conceptual Framework will continue to be a cornerstone of the IPSASB’s literature,” said IPSASB Chair Ian Carruthers. “These changes strengthen the Conceptual Framework and reinforce its relevance to both our financial reporting and new sustainability reporting activities.”
The updated Chapter 3 includes guidance on prudence, which is not a separate qualitative characteristic in its own right and adds ‘obscuring’ information to ‘misstating’ and ‘omitting’ information as a factor relevant to materiality judgments. The addition of ‘obscuring’ is an acknowledgement that, for example, voluminous disclosures of immaterial items can have an adverse impact on the usefulness of financial reports.
The updated Chapter 5 includes revised definitions of an asset and a liability. Guidance on these definitions has been restructured to better align with the components of the definitions, making it more user-friendly. There are also new sections on unit of account and executory contracts that are equally unperformed by both parties.
The IPSASB has fully revised Chapter 7 to streamline measurement concepts by eliminating unused measurement bases and focusing on the most commonly used measurement bases. The new subsequent measurement framework explains how the various measurement components applied to estimate the value of an asset or liability interact.
The updated chapters of the Conceptual Framework became effective for the IPSASB when published.
How to Access
To access the updated Conceptual Framework chapters, the summary At-a-Glance document, webcast and a related Staff Questions and Answers document visit the IPSASB website. The IPSASB encourages IFAC members, associates, and Network Partners to promote the availability of these pronouncements to their members and employees.
About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the government of Canada. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.
About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.
Conceptual Framework updates are effective when published. They are non-authoritative.
The International Public Sector Accounting Standards Board® (IPSASB®), developer of IPSAS®, international accrual-based accounting standards for use by governments and other public sector entities around the world has opened a consultation to hear stakeholder feedback on its proposed strategy and work program for the next five years.
The IPSASB’s work during 2019-2023 has addressed key gaps in the IPSAS literature which now allows for a rebalancing of its Financial Reporting Work Program towards the maintenance of IPSAS. The IPSASB proposes to put a post-implementation review process in place and to establish an Application Panel to support not only existing IPSAS users but the much larger group of stakeholders expected to be using the IPSASB Standards by 2030. The new strategy assumes that the IPSASB moves ahead with its decision to develop International Public Sector Sustainability Reporting Standards, an initiative begun in 2023 to help equip governments and other public sector entities to provide better transparency, accountability, and comparability of their efforts to combat the climate crisis and other sustainability challenges.
The proposed strategic objective of the IPSASB’s Strategy and Work Program 2024-2028 is:
Strengthening Public Financial Management and sustainable development globally through increasing adoption and implementation of accrual IPSAS and International Public Sector Sustainability Reporting Standards.
"Having achieved so much during the 2019-2023 Strategy period, despite the major challenges we have all faced, the IPSASB has reached an inflection point,” said IPSASB Chair Ian Carruthers. “This exciting new phase of the IPSASB’s work will build on the hard work of the Board to implement the current strategy, as well as the sustained input from all our stakeholders.”
This Consultation provides an opportunity for constituents to comment on the IPSASB’s proposed Strategic Objective, and the two main activities to deliver on the Strategic Objective. In addition to the proposed new maintenance activities and the priorities for these, constituents are also asked to comment on potential future Financial Reporting Work Program priorities, and what the key public sector sustainability reporting issues are the IPSASB should consider adding to its Work Program. Stakeholders should submit responses by February 15, 2024 to ensure their views are considered.
How to Comment To access the Consultation and its summary At-a-Glance document, or to submit a comment, visit the IPSASB website. Comments are requested by February 15, 2024. The IPSASB encourages IFAC member organizations and regional accountancy organizations to promote the availability of this Consultation to their members and employees.
About the IPSASB The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the government of Canada. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.
About the Public Interest Committee The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.
The International Public Sector Accounting Standards Board® (IPSASB®), developer of IPSAS®, international accrual-based accounting standards for use by governments and other public sector entities around the world has opened a consultation to hear stakeholder feedback on its proposed strategy and work program for 2024-2028.
The IPSASB held its third meeting of the year from September 12-15 in Switzerland hosted by the Canton of Zurich.
The IPSASB’s Next Strategy and Work Program
The IPSASB approved the 2024-2028 Strategy and Work Program Consultation. The proposals emphasize a greater focus on maintenance of IPSAS, including developing a Post-Implementation Review process and reaffirms the IPSASB decision to develop public sector sustainability reporting standards.
The IPSASB will hold in-person regional roundtables during the Consultation which will be open for 4-months.
Retirement Benefit Plans
The IPSASB approved IPSAS 49, Retirement Benefit Plans. This pronouncement provides accounting and reporting requirements for plans that provide retirement benefits to public sector employees.
IPSAS 49 will be effective for periods beginning on or after January 1, 2026.
Other Lease-Type Arrangements
The IPSASB continued to review the responses to Exposure Draft (ED) 84, Concessionary Leases and Right-of-Use Assets In-kind. During the meeting, the IPSASB agreed to proceed with the proposed principles with an aim to finalize the amendments to the Leases and Revenue Standards by March 2024.
Measurement-Application Phase
The IPSASB reviewed the applicability of current operational value to several IPSAS and concluded it applies to assets within the scope of IPSAS 32, Service Concession Arrangements: Grantor, but decided to perform further analysis on its applicability for IPSAS 12, Inventories, and IPSAS 43, Leases.
The IPSASB considered proposals to revise the definition of, and guidance on, recoverable service amount in IPSAS 21, Impairment of Non-Cash-Generating Assets. The IPSASB will consider illustrative examples at the December meeting.
Differential Reporting
The IPSASB reflected on the findings from its research and scoping phase and decided not to pursue a standard setting solution. Instead it decided to seek a partner to help develop practical application material to help preparers more easily navigate and apply IPSAS. The IPSASB aims to publish a feedback statement by early 2024 to summarize the full rationale supporting its decision.
Presentation of Financial Statements
The IPSASB received an education session on IPSAS 22, Disclosure of Financial Information about the General Government Sector and IPSAS 24, Presentation of Budget Information in Financial Statements and concluded the scope of the project should be consistent with the scope of IPSAS 1, Presentation of Financial Statements. The IPSASB approved the project brief for the Presentation of Financial Statements project.
Improvements to IPSAS 2023
The IPSASB approved ED 85, Improvements to IPSAS, 2023. ED 85 is expected to be published in October 2023 with a consultation period of 60 days.
Sustainability-Climate-Related Disclosures
The IPSASB received presentations from the IFRS Foundation, International Sustainability Standards Board, and New Zealand External Reporting Board to receive updates on their work related to sustainability reporting guidance and better understand their journeys specifically related to development of climate-related reporting standards.
Using the project brief approved in June 2023, the IPSASB agreed on its approach to developing its climate-related disclosure standard, including how it would incorporate climate expertise into the process.
Natural Resources
The IPSASB agreed to revise the definition of a natural resource as a naturally occurring item which embodies service potential or the capability to generate economic benefits.
The IPSASB also decided to reconsider the proposals on recognition and measurement, and whether the proposed guidance should be located in a standalone standard or as amendments to existing IPSAS.
Natural Resources-IFRS 6 Alignment
In response to comments received to the Natural Resources Consultation Paper, the IPSASB reviewed a first draft of an ED aligned with IFRS 6, Exploration for and Evaluation of Mineral Resources, including guidance aligned with IFRIC 20, Stripping Costs in the Production Phase of a Surface Mine.
First-Time Adoption of Accrual Basis IPSASs
The IPSASB considered several alternatives to address the public need to clarify and make IPSAS 33, First-time Adoption of Accrual Basis IPSASs, more user friendly and effective. The IPSASB will review a proposal for updates to IPSAS 33 at its December meeting where material will be rearranged by topic and supported by non-authoritative guidance.
Board Appointments and Chair Extension
Following a rigorous nominations and interview process involving the IFAC Nominating Committee and IPSASB leadership, overseen by the Public Interest Committee and approved by the IFAC Board, the IPSASB announced its new and reappointed Board members and Deputy Chair for 2024, as well as the extension of its Chair through 2025.
Meeting Videos
Recordings of the meetings are available on our YouTube channel.
At its June meeting, the IPSASB finalized its preliminary view regarding categorization on the Statement of Financial Performance, and considered presentation requirements regarding main operating activities, totals and subtotals, minimum line items, and expenses by nature or function. The Board will continue to refine and articulate the nuanced discussions in its Consultation Paper, and begin discussions on other presentation requirements at its next meeting.
The International Public Sector Accounting Standards Board (IPSASB), developer of IPSAS®, international accrual-based accounting standards for the public sector, announced its new and reappointed Board members and Deputy Chair for 2024, as well as the extension of its Chair through 2025.
The new IPSASB appointees have been selected following a rigorous nominations and interview process involving the IFAC Nominating Committee and IPSASB leadership, overseen by the Public Interest Committee and approved by the IFAC Board. The 2024 Board will continue to be a diverse, woman-majority group, with exceptional public sector accounting experience from around the world.
The new Board members are:
Angela Ryan, New Zealand
Yacouba Traoré, Burkina Faso
The following three current Board members have been reappointed:
Hervé-Adrien Metzger, France
Mari Kobayashi, Japan
Renée Pichard, Canada
In addition, Scott Showalter of the USA has been reappointed as IPSASB Deputy Chair for 2024.
“For the third year in 2024, the IPSASB will be a board comprising a majority of women,” said IPSASB Chair Ian Carruthers. “Diversity of Board membership is essential to ensure the delivery of high-quality standards that can strengthen public financial management globally. The appointment of a Board member from Francophone Africa will be critical to bringing this regional perspective directly into our work for the first time.”
The tenure of the IPSASB’s independent Chair, Ian Carruthers, has been extended for a final year through 2025.
This allows Mr. Carruthers to continue to lead the Board in its important work addressing accrual-based financial reporting issues in the public sector, at the same time as it advances into the new space for the Board in developing public sector sustainability standards. Under his leadership, the IPSASB will continue to advance its ambitious standard-setting agenda and stay on the front-foot in expanding its global impact.
About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the government of Canada. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.
About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.
IPSASB Welcomes Two New Members and Extends Chair for a Final Year
The International Public Sector Accounting Standards Board® (IPSASB®) seeks nominations from individuals, or representatives from organizations, interested in serving as a member of the IPSASB Consultative Advisory Group (CAG).
The CAG is an integral part of the IPSASB’s formal process for consultation and a forum for the IPSASB to obtain the views of those interested in, or affected by, the development and maintenance of its high-quality International Public Sector Accounting Standards™ (IPSAS™) used by governments and public sector entities around the world. CAG members have an opportunity to get involved in shaping the development of IPSASB Standards.
CAG members serve an initial term of up to three years. The CAG formally meets twice a year in different locations across the globe and may be convened for additional discussions as requested by the IPSASB. Interested nominees should be committed to attending all meetings.
The IPSASB is particularly interested in nominees with skills and experience that include:
The ability to perceive strategic public sector issues important to financial reporting, sustainability reporting, and the use of financial statements;
A deep understanding of IPSASB Standards; such as those involved in their adoption and implementation; and/or
A strong knowledge of public financial management.
The IPSASB values diverse perspectives and encourages qualified candidates that add to the CAG’s overall professional, geographic, and gender diversity. In pursuit of a globally representative advisory group, the IPSASB particularly encourages women and those from Africa, Asia, Middle East, and Latin America to apply.
How to Apply:
Those interested in CAG membership should submit their nominations by email to CAGChair@IPSASB.org. The nomination should include the CV and contact details of the nominee, as well as a cover letter that notes the reasons for their interest and the value they would add to the CAG.
Nominations are due by September 29, 2023.
About the IPSASB
The International Public Sector Accounting Standards Board® (IPSASB®) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.
In preparation for its 4th Research Forum, which will be co-hosted by Comparative International Governmental Accounting Research Network (CIGAR) at its June 2024 conference, the IPSASB is calling for scholarly contributions from the academic community. This is an opportunity for researchers to have a significant impact on accounting standards used by governments and public sector entities across the globe.
Coordinated through the Academic Advisory Group, which includes independent scholars from all parts of the world, as well as the IPSASB members who have an academic background, the IPSASB is offering a grant of USD $2,000 for selected scholarly papers submitted covering three research areas. Up to six grants are available in total [one of the Research Area 2 grants will be funded by the Association of Chartered Certified Accountants (ACCA)].
The research areas of interest are:
Research Area 1: Research on Practical IPSAS Implementation Challenges
Natural Resources
Presentation of Financial Statements
Research Area 2: Sustainability Reporting Focused Research
Climate Change and Public Sector Reporting Related to Sustainability
Accounting for Biodiversity in the Public Sector
Research Area 3: Research on Adoption and Implementation of Specific IPSAS
IPSAS 31, Intangible Assets
IPSAS 33, First-Time Adoption of Accrual Basis IPSAS
IPSAS 42, Social Benefits
The grant recipients, as well as other scholars, will present the first drafts of their full papers at the 2024 Research Forum (June 2024). As a first step, academics are invited to submit abstractsby September 1, 2023. (Extended until September 17, 2023) For more information, see the IPSASB’s Call for Papers.
The International Public Sector Accounting Standards Board® (IPSASB®) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.
