Improvements to IPSAS, 2023 was approved in March by the IPSASB and is expected to be published in April 2024. This new pronouncement includes amendments to IPSAS to add guidance related to the classification of liabilities and accounting for the lease liability in a sale and leaseback.
IFRIC Alignment–Narrow Scope Amendments
The IPSASB approved Exposure Draft (ED) 89, Amendments to Consider IFRIC Interpretations. This ED proposes to clarify the application of existing principles in IPSAS, based on five IFRIC Interpretations. ED 89 will be published in April 2024 for a 60-day exposure period.
Other Lease-Type Arrangements
The IPSASB approved ED 88, Arrangements Conveying Rights over Assets (Amendments to IPSAS 47 and IPSAS 48). ED 88 will be published at the end of March 2024 for a 60-day exposure period.
Sustainability-Climate-Related Disclosures
The IPSASB agreed that a government’s ability to set policy is unique to the public sector and specific guidance for governments’ policy setting activities that influence other entities, including other economic sectors, is necessary. The IPSASB also held initial discussions with breakout groups on public sector specific climate-related metrics and transitional provisions.
Natural Resources
The IPSASB agreed the derecognition requirements for natural resources, the transitional provisions, and with the description of conservation to be included in the ED, Natural Resources. The IPSASB also agreed with the subsequent measurement of natural resources and what should be excluded from the ED’s scope.
Measurement-Application Phase
The IPSASB discussed the applicability of current operational value for assets in scope of IPSAS 31, Intangible Assets, and reviewed the draft ED that includes amendments to inventories, intangible assets, impairment of non-cash-generating assets, accounting estimates, and current value measurement disclosures.
IPSAS 33–Limited Scope Update
The IPSASB agreed that IPSAS 33, First-Time Adoption of Accrual Basis IPSAS, should be enhanced by proposing guidance to support the pre-adoption phase of IPSAS implementation. The IPSASB also agreed to explicitly encourage early application of IPSAS during the transitional relief period.
Presentation of Financial Statements
The IPSASB continued its discussion of issues to advance the development of a new IPSAS to replace IPSAS 1, Presentation of Financial Statements. This included consideration of definitions and overarching presentation requirements and was supported by breakout group discussions on the presentation of revenue and expense items outside the statement of financial performance.
Meeting Videos
Recordings of the meetings are available on our YouTube channel.
Next Meeting
The second IPSASB meeting of 2024 will take place in Toronto, Canada from June 25 – 28. For more information, or to register as an observer, please visit the IPSASB website.
Pathways to Accrual: Find resources helpful for planning and undertaking a transition from cash to accrual accounting including adopting and implementing IPSAS.
e-International Standards: Access the IPSASB’s standards and pronouncements on a convenient digital platform.
Train the Trainer: Download a package of training materials on IPSAS that can be tailored to the needs of training participants. A new edition will be released later this month.
