During its quarterly meeting in Toronto, Canada, the International Public Sector Accounting Standards Board (IPSASB) took pivotal decisions on the next steps in its project to develop urgently needed guidance for governments and public sector entities on climate-related disclosures. Responding to a record number of comments on its Exposure Draft (ED) IPSASB SRS ED 1, Climate-related Disclosures, the IPSASB recognized that the complexity of having different reporting perspectives in a single standard would not meet the needs of the public sector. Instead, the project will be split into two phases:

• Phase 1, Own Operations, will finalize the first-ever public sector sustainability reporting standard tailored for the public sector that’s already in development, focusing on how public sector entities disclose climate-related risks and opportunities to their own operations.
• Phase 2, Public Policy Programs, will develop a separate standard for those specific public sector entities responsible for delivering climate-related public policy programs and their outcomes.

This phased approach will meet the urgent need for public sector guidance while allowing additional time to address the more complex reporting needs identified by stakeholders.

Ian Carruthers, IPSASB Chair said: "The IPSASB’s ED on Climate‐related Disclosures generated unprecedented engagement – attracting the Board’s largest ever number of responses to a technical consultation. Our stakeholders clearly told us that the dual perspectives of Own Operations and Public Policy Programs are right for the public sector. The Board’s decision to take a phased approach to the project will bring a variety of benefits – providing timely guidance to preparers to start their sustainability reporting journeys and reducing the complexity of the proposed guidance.”

The IPSASB intends to vote on a final pronouncement for the Own Operations standard, which will be its inaugural IPSASB SRS Standard, at its December 2025 Board meeting. Once the first standard has been approved, the Board will then consider stakeholders’ feedback on the proposed Public Policy Programs guidance, with the aim of finalizing the second standard around the end of 2026. Both standards will help governments and public sector entities make informed decisions on climate action, while providing the reporting needed for accountability and public trust.

How to Access
Access the IPSASB SRS ED 1, Climate-related Disclosures, its summary At-a-Glance document, and the published comment letters responding to the ED.

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®), IPSASB Sustainability Reporting Standards™ (IPSASB SRS™) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and IPSASB SRS and promotes the adoption and implementation of these to enhance the quality and consistency of practice throughout the world and strengthen the transparency and accountability of public sector finances and sustainable development.  The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and The World Bank. 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.

As jurisdictions around the world commit to strengthening public financial management, the shift from cash to accrual accounting is accelerating. High-quality global public sector accounting standards are essential for enabling transparency and accountability and providing better information for decision-making.  With the increasing adoption of IPSAS Standards, there is a need for tools to help support each stage of implementation, from advocacy to capacity building to training.

In collaboration with the International Public Sector Accounting Standards Board (IPSASB), IFAC has published a new resource, Implementing International Public Sector Accounting Standards (IPSAS): IFAC Tools, a compilation of our resources designed to help governments and public sector entities adopt and implement IPSAS Standards and help Professional Accountancy Organizations (PAOs) advocate for their use.

This new resource compiles IFAC tools that:

• Offer practical implementation guidance through the transition from cash to accrual, tailored to different contexts and reform stages, and;
• Help build capacity and technical knowledge with training materials, templates, and examples.

IFAC Chief Executive Officer Lee White said: “We advocate for global standards, including the IPSAS because global standards lead to better decisions for the benefit of all. We work with the IPSASB to help our members with tools and resources to strengthen public financial management. Our members are trusted partners with governments and support IPSAS adoption and use by building capacity in their jurisdiction.” 

IPSASB Chair Ian Carruthers said: “This compilation brings together the practical tools and guidance that jurisdictions and stakeholders need to move from aspiration to adopting and implementing IPSAS Standards and ultimately help public sector entities to deliver more transparent, accountable, and sustainable public finances.”

About IFAC  

IFAC, by connecting and uniting its members, makes the accountancy profession truly global.    

IFAC member organizations are champions of integrity and professional quality, and proudly carry their membership as a badge of international recognition.    

IFAC and its members work together to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest.    

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® Standards), IPSASB Sustainability Reporting Standards (IPSASB SRS™ Standards) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS Standards and IPSASB SRS Standards and promotes the adoption and implementation of these to enhance the quality and consistency of practice throughout the world and strengthen the transparency and accountability of public sector finances and sustainable development. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and The World Bank. 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.

As jurisdictions around the world commit to strengthening public financial management, the shift from cash to accrual accounting is accelerating. High-quality global public sector accounting standards are essential for enabling transparency and accountability and providing better information for decision-making. With the increasing adoption of IPSAS Standards, there is a need for tools to help support each stage of implementation, from advocacy to capacity building to training.

In partnership with the Institute of Chartered Accountants of the Caribbean (ICAC), IFAC has released a timely report emphasizing the critical role of the accountancy profession in accelerating climate resilience and energy transformation across the Caribbean.

Climate Challenges Demand Professional Action

As part of the IAASB’s Technology Position, ongoing gap analyses are conducted to ensure standards keep pace with technological developments. The findings of these analyses are captured in this Catalog of Issues and Possible Actions.

The International Public Sector Accounting Standards Board (IPSASB) has released the IPSAS Exposure Draft (ED) 93, Definition of Material (Amendments to IPSAS 1, IPSAS 3, and the Conceptual Framework) for public comment.

This ED seeks to provide more consistent guidance on materiality across the IPSASB’s financial reporting literature to assist entities in its application, and help them to develop clearer, more useful financial reports.

IPSAS ED 93 proposes aligning the definition of material between the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities and IPSAS Standards by:

• Clarifying that an entity is required to consider the information needs of primary users instead of other users of GPFRs; and
• Aligning the definition of material in IPSAS 1, Presentation of Financial Statements, with Chapter 3: Qualitative Characteristics of the Conceptual Framework.

“Getting the definition of materiality right is critical because it affects what information is presented in public sector financial reports,” said Ian Carruthers, IPSASB Chair. "The clear and consistent definition of material proposed in this ED will not only help entities with its application but will also provide a strong foundation for developing non-authoritative guidance on making materiality judgments in the second phase of this project.”

The IPSASB welcomes your views on the proposed standard and other matters raised for comment in this IPSAS ED. The comments received will help shape the final pronouncement.

To facilitate stakeholder engagement, this project will be undertaken in three distinct phases:

• Phase 1—Review the consistency of the definition of ‘material’ across the IPSASB financial reporting guidance and propose changes to achieve this. IPSAS ED 93 delivers this phase.
• Phase 2—Materiality in Financial Reporting: Develop non-authoritative guidance aligned with IFRS® Practice Statement 2, Making Materiality Judgments. This narrow-scope project will efficiently and promptly address constituents' need for additional guidance on making materiality judgments when preparing financial statements in accordance with IPSAS.
• Phase 3—Materiality in Sustainability Reporting: Develop guidance on making materiality judgments when preparing sustainability reporting in accordance with IPSASB SRS. This phase will commence following the development of IPSASB SRS ED 1, Climate-related Disclosures.

How to Access
Access the IPSAS Exposure Draft, its summary At-a-Glance document, or submit a comment. Comments on the IPSAS Exposure Draft are requested by July 14, 2025. The IPSASB encourages IFAC members, associates, and Network Partners to promote the availability of this IPSAS Exposure Draft 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® Standards), IPSASB Sustainability Reporting Standards (IPSASB SRS™ Standards) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS Standards and IPSASB SRS Standards and promotes the adoption and implementation of these to enhance the quality and consistency of practice throughout the world and strengthen the transparency and accountability of public sector finances and sustainable development. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and The World Bank. 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.