• Exposure Draft 73, COVID-19: Deferral of Effective Dates

    The IPSASB has published Exposure Draft 73, Covid-19: Deferral of Effective Dates, which proposes to delay the effective dates of recently published Standards and Amendments to IPSAS by one year to January 1, 2023. 

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  • IPSASB eNews: June 2020

    English

    The IPSASB held its first ever virtual meeting on June 4, June 23-26 and June 30, 2020. This was the second IPSASB meeting of 2020.

    Conceptual Framework - Limited Scope Review

    The IPSASB approved a measurement hierarchy distinguishing Measurement Models, Measurement Bases and Measurement Techniques.  

    • Historical Cost, Fair Value, Current Cost and Fulfillment Value (or Cost of Fulfillment) will be defined as bases. 
    • Market Value and Replacement Cost will be defined as techniques. 

    The IPSASB will consider additional bases, including Value in Use and Cost of Release, in September. The selection of measurement bases will be linked to the Framework’s measurement objective. 

    Measurement

    The IPSASB considered issues raised by constituents related to measurement bases identified in the Measurement Consultation Paper (CP). These foundational discussions, along with those in the related Conceptual Framework project, will shape the draft Measurement Exposure Draft (ED) that will be reviewed in September. 

    The IPSASB also discussed the impact of applying the CP Measurement definition of fair value across IPSAS and concluded that no change in terminology is required for the majority of IPSAS where the term fair value is currently applied.

    Infrastructure

    The IPSASB agreed “networks or systems” and “long useful lives” should be included as characteristics of Infrastructure Assets in IPSAS 17, Property, Plant and Equipment. These characteristics distinguish Infrastructure Assets from general property, plant, and equipment and present complexities in the application and implementation of existing principles in the Standard. Illustrative Examples and/or Implementation Guidance will be developed for September 2020 to help provide clarity.  

    Heritage

    The IPSASB agreed “irreplaceable,” “restrictions,” and “long and sometimes unspecified useful lives” should be included as characteristics of Heritage Assets in IPSAS 17. These characteristics distinguish Heritage Assets from other property, plant, and equipment and present complexities in the application and implementation of existing principles in the Standard. 

    The IPSASB also approved the removal of the heritage assets scope exclusion from IPSAS 17.

    Accounting for Non-Current Assets Held for Sale and Discontinued Operations

    The IPSASB approved the Project Brief for the project to develop a standard aligned with IFRS 5, Accounting for Non-current Assets Held for Sale and Discontinued Operations. The IPSASB also agreed to add additional public sector disclosure requirements on the fair value of assets classified as held for sale to enhance transparency and accountability.

    Leases

    The IPSASB reviewed the draft Basis for Conclusion related to the history of the Leases project. The IPSASB decided to align with IFRS 16, Leases in the development of Exposure Draft on Leases. However, it also decided to exclude the IFRS 16 manufacturer or dealer lessor requirements because these are not expected to be applicable in the public sector. The IPSASB considered the structure and content of the Request for Information that will be developed for publication together with the Exposure Draft on Leases to gather information on transactions and arrangements similar to leases.

    Next Meeting

    The next meeting of the IPSASB will take place in September, 2020. For more information, or to register as an observer, visit the IPSASB website (www.ipsasb.org). 

  • IPSASB June 2020 Meeting Podcast

    English

    Highlights from the IPSASB June 2020 meeting:

    00:00     Welcome and introduction: Ross Smith, IPSASB Program & Technical Director
    00:39     Chair’s meeting overview: Ian Carruthers, IPSASB Chair
    03:10     Conceptual Framework-Limited Scope Update and Measurement projects: Ian Carruthers, IPSASB Chair
    09:25     Update IPSAS 17 and the related Heritage Assets and Infrastructure Assets projects: Ian Carruthers, IPSASB Chair
    12:49     Closing remarks: Ross Smith, IPSASB Program & Technical Director


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  • Thomas Müller-Marqués Berger Re-Elected as Chair of the IPSASB Consultative Advisory Group

    English

    The Consultative Advisory Group (CAG) of the International Public Sector Accounting Standards Board (IPSASB) has re-elected Thomas Müller-Marqués Berger as its Chair until June 2023.

    In his role as Chair, Mr. Müller-Marqués Berger will continue to lead the IPSASB CAG, which he has done since its inception in June 2016. The CAG is composed of 25 representatives of public and private sector organizations and individuals that are interested in, or affected by, the IPSASB’s work, including those engaged in the preparation, audit, or evaluation of public sector financial reports. The CAG advises the IPSASB on technical projects and issues, as well as on its Strategy, adoption of standards, and other pressing issues.

    Mr. Müller-Marqués Berger is a distinguished public sector accounting expert. Currently Global Head of International Public Sector Accounting for Ernst & Young, Mr. Müller-Marqués Berger’s deep experience in accounting standard-setting includes chairmanship of the Public Sector Group of Accountancy Europe since 2011, membership of the German Public Sector Committee since 2002, and service to global standard setting as an IPSASB member from 2009–2014.

    “I am delighted that Mr. Müller-Marqués Berger will continue to serve as CAG Chair. He has played a key role in the CAG’s development into an influential advisor for the IPSASB. He will be a great asset to both the IPSASB and its CAG as we address the challenges created by the current environment, while continuing to make progress with our wide-ranging work program,” said IPSASB Chair Ian Carruthers. “I look forward to continuing to work closely with Thomas and the CAG.”

    “I am very appreciative of the trust CAG members have placed in me, and I believe that the CAG’s journey has just begun,” said Mr. Müller-Marqués Berger. “I am honored to lead this exceptional group of public sector experts as it continues to serve as the IPSASB’s strategic advisor, helping to set priorities and to advance the public interest, especially during this uniquely challenging time. It gives me great pleasure to continue the ongoing partnership with Ian and the IPSASB.”  

    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.

    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.

  • New IPSASB Staff Q&A Addresses Climate Change

    English

    Climate change presents an existential threat for individuals, societies and economies. Compounded by the economic losses that the COVID-19 pandemic presents, there is a need for financial reporting and information that provides a clear, forward-looking, long-term view of an organization’s finances and sustainability – particularly for governments and other public sector entities.

    As principles-based standards, governments and public sector entities can apply existing IPSAS literature to report on sustainability issues, including climate change risks, and to communicate progress towards achieving goals such as the SDGs.

    To help stakeholders understand how to apply the Board’s current guidance to provide clear, comparable, and relevant information on climate change, the IPSASB Staff have published a Questions & Answers (Q&A) document highlighting the relevant standards and guidance for the public sector. The Staff Q&A addresses key questions such as:

    • Is there any existing IPSASB literature relevant to consider for climate change reporting?
    • When governments or public sector entities have strategies and programs in place to manage climate change risks, how should these be treated?
    • When governments or public sector entities adopt the UN’s Sustainable Development Goals (SDGs), what IPSAS financial reporting guidance should be considered?

    The Staff Q&A on Climate Change is intended to help drive transparency and sustainability in reporting on public finances. Further guidance on the recognition, measurement, presentation and disclosure of natural resources is also being considered by the IPSASB as part of its project on Natural Resources.

    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.

    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.

  • Climate Change: Relevant IPSASB Guidance

    This Questions and Answers (Q&A) publication is issued by the Staff of the IPSASB to discuss the relevance of International Public Sector Accounting Standards (IPSAS) and related Recommended Practice Guidelines (RPG) for reporting on both climate change and the United Nations’ Sustainable Development Goals (SDGs) in the general purpose financial reports of public sector entities. 


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    English

  • IPSASB eNews: March 2020

    English

    The IPSASB held its first meeting of 2020 from March 10-13, 2020 at the IFAC offices in New York, USA. 


    Infrastructure Assets

    The IPSASB decided that infrastructure assets are a subset of property, plant and equipment and considered the characteristics which differentiate them. The IPSASB will agree the infrastructure assets characteristics after analyzing the remaining issues. The IPSASB also considered the issues of depreciation, spare parts and dismantling costs. The IPSASB will continue these discussions at its June meeting.
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    Heritage

    The IPSASB considered whether heritage items are resources and controlled for financial reporting purposes. The IPSASB decided that tangible heritage items are assets when they meet the definition of property, plant and equipment and concluded they should be depreciated and tested for impairment, except under certain specific circumstances. 

    Revised guidance related to these issues will be developed for the IPSASB’s consideration at its June meeting.
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    Measurement

    The IPSASB reviewed the responses to the Measurement Consultation Paper. The IPSASB agreed that the existing accounting policy choice in IPSAS 5, Borrowing Costs, which allows borrowing costs that are directly attributed to qualifying assets to be either expensed as incurred or capitalized, should be retained. Additional guidance will be developed for the IPSASB’s consideration at its June meeting. 

    The IPSASB identified several themes in its review of the responses and will further address these during its June and September meetings. 
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    Conceptual Framework - Limited Scope Update

    The IPSASB approved a project brief on the Limited Scope Update of the Conceptual Framework (the Framework) subject to minor drafting and editorial changes. The project addresses specified issues identified from the IPSASB’s experience in using the Framework, as well as considering relevant developments in the finalized Conceptual Framework of the International Accounting Standards Board, which was published in March 2018. It is not an extensive review.

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    Natural Resources

    The IPSASB approved a project brief on Natural Resources subject to minor drafting and editorial changes. The first part of this project will develop a comprehensive consultation paper covering the recognition, measurement, and disclosure of subsoil resources, living resources and water. 
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    Leases

    The IPSASB decided to continue the project in phases, firstly, by developing an ED based on IFRS 16, followed by a second phase addressing the accounting for concessionary leases, which is a prevalent public sector issue. The IPSASB also agreed that the exposure draft based on IFRS 16 should request constituent input on concessionary leases to help with the second phase of the project. 
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    Accounting for Non-Current Assets Held for Sale and Discontinued Operations in the Public Sector

    The Board reviewed a proposal for a project to align with IFRS 5, Non-current Assets Held for Sale and Discontinued Operations. The IPSASB agreed that the project should proceed and identified public sector issues for further consideration. The IPSASB also recommended that the project be discussed with the Consultative Advisory Group at its June 2020 meeting. It will then be discussed with the IPSASB at its June 2020 meeting.
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    Meeting Podcast

    A podcast highlighting key points of the March 2020 meeting is now available here.

    Next Meeting

    The next meeting of the IPSASB will be in Toronto, Canada from June 23-26, 2020 with the Consultative Advisory Group Meeting on June 22, 2020. For more information, or to register as an observer, visit the IPSASB website.

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