The IPSASB CAG held its second meeting on December 5. The CAG discussed needs and perspectives in the current public financial management (PFM) environment. This included the IPSASB´s role and responsibility in the global PFM landscape and initial input to the IPSASB’s next strategy and work plan. The CAG was updated on the IPSASB’s current work plan and discussed the projects on Public Sector Combinations, Financial Instruments, Leases, and Heritage.

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The IPSASB considered a draft final pronouncement that reflected the decisions taken at the September 2016 meeting. After agreeing to a number of drafting changes, the IPSASB approved IPSAS 40, Public Sector Combinations. The standard, which has an effective date of January 1, 2019, is expected to be issued in late January or February 2017.

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The IPSASB approved the first three chapters of the draft Consultation Paper dealing with the drivers for the project, the literature on revenue recognition, and the categorization of public sector transactions in order to explore the extent to which a performance obligation approach might be applied. The IPSASB agreed that, under this approach, there are a range of remedies available to a resource provider in the event of non-fulfillment of a performance obligation by a resource recipient.

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The IPSASB progressed the project scope and key definitions. The IPSASB also considered the obligating events to be identified in a future Exposure Draft. While not reaching any conclusions on these topics, the IPSASB identified further matters for consideration, including current IASB work on Insurance. The IPSASB had initial discussions on disclosures and amendments to other IPSAS.

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The IPSASB discussed a number of issues in development of the Exposure Draft, including accounting for embedded derivatives, hedge accounting, and transitional provisions. The IPSASB agreed to remain consistent with IFRS 9 for authoritative guidance in these areas and to develop public sector-specific illustrative examples and implementation guidance.

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The IPSASB discussed two variants of the right-of-use model for lessor accounting. While most IPSASB members support continuing to recognize the underlying asset in its entirety and to recognize a liability (unearned revenue), the IPSASB directed staff to carry out further analysis on consistency with sale and leaseback requirements and other IPSAS. The IPSASB decided to replace the term “peppercorn leases” with the term “concessionary leases.”

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The IPSASB reviewed a draft Consultation Paper on financial reporting for heritage in the public sector, and approved the first three chapters. The IPSASB will consider the next four chapters, including recognition and measurement of heritage items, in March.

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The Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities Webinar is now available in Mandarin. The Framework guides the development of IPSAS and Recommended Practice Guidelines. It also provides guidance on financial reporting issues outside the IPSASB’s literature.

Watch Webinar >>

The Call for Nominations for the Independent Standard-Setting Boards for 2018 sets out upcoming opportunities on the independent standard-setting boards, including the IPSASB. For details on time commitments and how to nominate, see Developing a Nominations Strategy.

Learn More >>

IAASB Chairman Prof. Arnold Schilder recently spoke during the Association of Chartered Certified Accountants-Grant Thornton Future of Audit conference in Brussels, Belgium. Full text of the speech is available online. 

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A series of questions and answers related to the new Auditor's Report is now available from the IAASB Auditor Reporting Implementation Working Group to provide guidance, especially on those areas where there are common differences in interpretation of the new and revised Auditor Reporting standards and International Standard on Auditing (ISA) 720 (Revised).

Read Q&As »

Dan Montgomery, Chair of the IAASB's Auditor Reporting Implementation Working Group, recently presented during a virtual training hosted by the World Bank Centre for Financial Reporting Reform. The training and Mr. Montgomery's presentation covered the enhancements to the IAASB's standards resulting from the IAASB's auditor reporting project and provided insights from early adoption.

Learn More »

A new Discussion Paper explores agreed-upon procedures (AUP), including how they are undertaken and the extent to which practitioners find existing requirements and guidance helpful or challenging. It also explores the demand for engagements that combine reasonable assurance, limited assurance, and non-assurance engagements, and whether the IAASB's standards are appropriate for these types of engagements.

Comment by March 29, 2017 »

In response to the rapidly changing pace of technology and the capability to capture and communicate data digitally, the IAASB's Data Analytics Working Group issued a Request for Input, Exploring the Growing Use of Technology in the Audit, with a Focus on Data Analytics. 

Comment by Feb. 15, 2017 »

The Discussion Paper is intended to facilitate transparent dialogue about the IAASB’s potential role and where others can or need to play a role in the holistic and interactive process to support credibility and trust in emerging forms of external reporting. It explores factors that can enhance credibility and trust, types of professional services covered by the IAASB’s standards, key challenges in relation to assurance engagements, and the type of guidance that may be helpful. Please note, the deadline for comments has been extended.

Comment by Feb. 3, 2017 »

The IAASB, Compagnie Nationale des Commissaires aux Comptes, and Conseil Supérieur de l'Ordre des Experts-Comptables are co-hosting an important two-way dialogue between standard setters and other interested stakeholders (including practitioners) on the needs and challenges of small- and medium-sized practices (SMPs). The two-day conference, Laying the Foundations for Sustainable Economic Growth: Addressing the Unique Challenges of SMPs and the Needs of SMEs, will be held in Paris in late January 2017. Day one will focus on the needs of users in relation to engagements that are not audits; day two will focus on applying the ISAs in audits of small- and medium-sized entities. 

ISA 250 (Revised), Considerations of Laws and Regulations in an Audit of Financial Statements, and conforming amendments to other standards, were released in October 2016. The standards respond to new requirements in the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants addressing non-compliance with laws and regulations (NOCLAR).

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IAASB Acting Technical Director Beverley Bahlmann hosts the September 2016 audio podcast, featuring Chairman Arnold Schilder and IAASB Members Fiona Campbell, Annette Köhler, Ron Salole, Rich Sharko, and Megan Zietsman to discuss key activities and events from the board's September 19-23, 2016, meeting in Hong Kong. Meeting highlights are also available.

Listen Now »

The IAASB has continued its extensive outreach program contemplated in its five-year Strategy for 2015–2019: Fulfilling Our Public Interest Mandate in an Evolving World. It has compiled a detailed listing of outreach activities for January-November 2016.

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The IAASB met last week (December 5-9, 2016) in New York, NY; meeting papers are available online. Meeting highlights and podcase will be available soon.

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The Call for Nominations for the Independent Standard-Setting Boards for 2018 has been issued, setting out upcoming opportunities on the independent standard-setting boards, including the IAASB. Details on time commitments, how to nominate, and more are included in the Call and the companion Developing a Nominations Strategy.

Read More »

The International Federation of Accountants (IFAC) recently published comprehensive profiles of member organizations and the jurisdictions in which they operate online. The in-depth information demonstrates the widespread use of international standards, including those issued by the IAASB, and efforts to encourage adoption and advance implementation.

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• December 20, 2016: IAASB Handbook (electronic vol. 1; vol. 2 & 3 and print version available in January 2017)
• January 31 & February 14, 2017: IAASB Teleconferences
• March 13-17, 2017: IAASB Meeting, Lima, Peru
• May 2 & May 18, 2017: IAASB Teleconferences
• June 19-23, 2017: IAASB Meeting, New York, New York
• July 18 & August 1, 2017: IAASB Teleconferences
• September 18-22, 2017: IAASB Meeting, New York, New York
• October 24-26, 2017: IAASB Meeting, New York, New York
• November 7, 2017: IAASB Teleconference
• December 11-15, 2017: IAASB Meeting, New York, New York

The September meeting highlights feature updates on the IESBA’s current projects and initiatives, including: Long Association, Structure of the Code of Ethics for Professional Accountants (the Code), Safeguards, Part C, and Professional Skepticism. The IESBA also was briefed on the progress of the review of academic and other literature on the topic of fees, and considered proposed IESBA Staff Q&As on its recently released standard addressing non-compliance with laws and regulations (NOCLAR).

The IESBA unanimously approved final changes to the Code relating to the long association of firm personnel with an audit or assurance client. The IESBA plans to hold a teleconference in November 2016 to agree on the effective date of the revised provisions. Subject to Public Interest Oversight Board approval, these changes, developed under the current structure and drafting conventions for the Code, will be made available on the IESBA website by the end of the year.

Listen to September Highlights >> | Read September Meeting Summary >>

At its September meeting, the IESBA also considered preliminary recommendations from the joint Professional Skepticism Working Group—comprising representatives of the IESBA, International Auditing & Assurance Standards Board (IAASB), and International Accounting Education Standards Board—on actions that the three standard-setting boards could take, individually and in coordination, to enhance the application of professional skepticism in their respective standards, following an update on feedback to the IAASB’s Invitation to Comment (ITC). The IESBA agreed to explore the feasibility of short-term enhancements to the Code, potentially for public exposure in early January.

See the ITC >>

The Consultative Advisory Group (CAG) meeting started with a joint session with the IAASB CAG to receive report-backs on the boards’ respective NOCLAR projects, and to discuss matters arising from the preliminary work of the boards’ joint Professional Skepticism Working Group—see left. The IESBA CAG meeting continued with CAG representatives discussing and/or providing input on several board projects—Structure, Safeguards, Part C, and Long Association—followed by an update on the fees initiative.

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At its September 14-16 meeting, the Public Interest Oversight Board (PIOB) approved the nominations recommended by the Nominating Committee for the 2017 composition of the IESBA, and other groups it oversees. Two of the IESBA members will be retiring from the board at the end of the year. IESBA Chairman Dr. Stavros Thomadakis attended a joint session with the Chairs of the CAGs of the other standard-setting board to discuss common issues and the PIOB’s 2017-2019 Strategy consultation, among other issues.

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Anne Molyneux, representing the International Corporate Governance Network on the IESBA CAG, explains how the new NOCLAR standard can enhance corporate governance and support the public interest, urging all those in the financial reporting supply chain—not only accounting professionals but also regulators and lawmakers—to understand they have a role in preventing and bringing to light potential non-compliance with laws and regulations.

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Lucy Elliott, representing the Organisation for Economic Co-operation & Development (OECD) on the IESBA CAG, illuminates key aspects of the OECD’s Anti-Bribery Convention, and explains how the Convention and the IESBA’s NOCLAR standard share key public interest objectives, including fighting the global scourges of bribery and corruption. She calls on regulators to consider strengthening jurisdictional whistleblower protections, which would enable compliance with the Convention requirements and complement and support the new IESBA standard.

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Matt Waldron, representing the CFA Institute on the IESBA CAG, discusses the new NOCLAR standard’s relevance to the investment community, particularly how the standard can enhance trust and confidence in organizations. He also explains how corporate governance, including tone at the top, is critical to creating a culture that discourages non-compliance and encourages speaking up and reporting instances of possible non-compliance with laws and regulations.

Watch Video >>

The IPSASB noted that the IFAC Board approved the IPSASB’s revised Terms of Reference at its September 2016 meeting.

IPSASB Consultative Advisory Group (CAG) Chair, Mr. Thomas Müller-Marqués Berger, updated the IPSASB on efforts to add additional members with a parliamentarian perspective and discussed the agenda and approach to papers for the next CAG meeting in December 2016.

In developing the forthcoming Exposure Draft (ED) to update IPSASB’s standards on financial instruments, the IPSASB discussed overarching issues, such as terminology and interaction with other standards, as well as specific issues related to classification, measurement, and impairment. The IPSASB agreed to remain consistent with IFRS 9, Financial Instruments, for authoritative guidance in those areas and to develop public sector-specific illustrative examples as appropriate to alleviate implementation concerns.

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The IPSASB reviewed a draft Consultation Paper (CP) on financial reporting for heritage in the public sector. The IPSASB supported a preliminary view on a definition of heritage items, but concluded that use of a “symbolic value” of one currency unit to measure heritage assets is not consistent with its Conceptual Framework. Chapters on heritage-related information—obligations and presentation—will be revised to consider the implications of heritage items’ special characteristics. In December, the IPSASB will consider a revised CP.

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The IPSASB decided not to adopt the lessor accounting requirements in IFRS 16, Leases. The IPSASB directed staff to analyze further lessor accounting models against the criteria of consistency with the Conceptual Framework, the IPSASB’s current literature, and lessee accounting, taking into account the overall public sector context. The IPSASB also made a tentative decision not to include explicit guidance in an ED on the assessment of a sale within the context of a sale and leaseback transaction based on a performance obligation approach, prior to any decision on, and development of, an IPSAS drawn from IFRS 15, Revenue from Contracts with Customers.

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In addition to progressing the scope of the project, the IPSASB agreed that meeting eligibility criteria related to social risks is a key element of the social benefits definition. The IPSASB agreed that a future ED should include the “threshold eligibility criteria” and “eligibility criteria for the next benefit” obligating events, with further research required on other possible obligating events.

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After reviewing a first draft of a CP, the IPSASB instructed that modifications should be made to the structure and that it should reflect a greater preparer and user perspective. The IPSASB agreed that the public sector performance obligation approach should be limited to transactions that are enforceable, but that enforceability should reflect a variety of public sector mechanisms, rather than purely contractual ones. The IPSASB will consider a revised draft in December.

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In light of responses to Exposure Draft 60, Public Sector Combinations, the IPSASB agreed to make a number of changes to the requirements. The key changes are: additional clarification of the classification approach; permitting the presentation of comparative information in amalgamations; and allowing reserve balances to be carried forward in amalgamations. The IPSASB expects to approve an IPSAS at its December 2016 meeting.

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The IPSASB published an overview of the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities in Portuguese. Narrated by IPSASB staff member João Carlos Fonseca, this presentation provides an overview of the key aspects of the Conceptual Framework, which guides the development of IPSAS and Recommended Practice Guidelines and can also provide guidance on financial reporting issues that are not dealt with by the standards and guidelines.

Watch now>>

The CP, Public Sector Specific Financial Instruments, is open for public comment until December 31,2016. The CP aims to initiate a debate on the scope of requirements and guidance, and possible approaches to recognition and measurement. See also the At-a-Glance document for a summary.

Comment by December 31>>

The September 2016 episode of the IPSASB’s meeting podcast summarizes key points discussed on the following projects: Revenue and Non-Exchange Expenses, Financial Instruments, Heritage, Public Sector Combinations, Leases, Social Benefits, and Emissions Trading Schemes.

Listen to September Highlights>>

Based in New York, this uniquely impactful role requires deep knowledge of audit and assurance, strong understanding of standard setting, and exceptional leadership ability. 

Access additional information »

IAASB Chairman Prof. Arnold Schilder recently discussed what lies ahead for the audit profession, the IAASB, and investors with Matt Waldron, Director of Financial Reporting Policy at CFA Institute and Chair of the IAASB Consultative Advisory Group.

Read Interview »

In response to the rapidly changing pace of technology and the capability to capture and communicate data digitally, the IAASB has issued a Request for Input, Exploring the Growing Use of Technology in the Audit, with a Focus on Data Analytics.

Comment by February 15, 2017 »

A call for nominations for a newly formed Data Analytics Project Advisory Panel was issued at the same time as the Request for Input. The deadline for nominations is October 15, 2016.

Access Call for Nominations »

A recent Discussion Paper from the IAASB’s Integrated Reporting Working Group covers factors that can enhance credibility and trust in external reporting, types of professional services covered by IAASB standards, key challenges in relation to assurance engagements, and potential guidance. 

Comment by Dec. 15, 2016 »

As the IAASB will soon be at the mid-point of its five-year strategy, it is has issued a public surveyconsultation seeking feedback and comment on its work plan for 2017-2018. All stakeholders are asked to share their views.

Survey closes Sept. 30, 2016 »

• September 12-13, 2016: IAASB CAG Meeting, New York, New York
• September 19-23, 2016: IAASB Meeting, Hong Kong
• December 5-9, 2016: IAASB Meeting, New York, New York
• March 13-17, 2017: IAASB Meeting, Lima, Peru
• June 19-23, 2017: IAASB Meeting, New York, New York

For the first time, a meeting of professional accountancy organizations interested in Arabic language translations was held, hosted by the Gulf Cooperation Council Accountancy and Auditing Organization. The parties agreed to further collaborate in order to increase IFAC-authorized Arabic translations of the International Standards and other IFAC publications to support professional accountants in the region.

For more information, contact permissions@ifac.org.

Nine translated documents comprising the International Good Practice Guidance series were finalized and published to support Spanish-speaking professional accountants in business.

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The International Public Sector Accounting Standards Board^®(IPSASB^®)’s IPSAS 33-38 andRecommended Practice Guideline 3 have been published by IFAC in Spanish. These pronouncements deal with a variety of important issues, including first-time adoption of accrual basis IPSAS.

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Summaries of eight IFAC Policy Position Papers cover topics including standard setting in the public interest, regulation and global regulatory convergence, effective governance, risk management and internal control, and enhancing organizational reporting.

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The International Ethics Standards Board for Accountants^® (IESBA^®)’s staff publication, Ethical Considerations Relating to Audit Fee Setting in the Context of Downward Fee Pressure, highlights important considerations in theCode of Ethics for Professional Accountants™ (the Code) for auditors in relation to the setting of audit fees.

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The International Auditing and Assurance Standards Board (IAASB)’s new ISA 701,Communicating Key Audit Matters in the Independent Auditor's Report, and other revised auditor reporting standards, including revised versions of ISA 260, 570,700, 705, 706, 800, 805, and 810. A Spanish translation of theReporting on Audited Financial Statements – New and Revised Auditor Reporting Standards and Related Conforming Amendments, including ISA 701, is also available. Revised versions of ISA 800, 805, and 810 will soon be available in Spanish.

The 2013 Handbook of International Public Sector Accounting Pronouncements, including IPSAS 1-32 and, chapters 1-4 of the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities, is now available in French.

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IFAC published the Russian edition of the 2014 IAASB Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements, Volumes II and III. The translation was reviewed by a committee including experts from the Russian Federation, Belorussia, Kazakhstan, and Kyrgyzstan to ensure its wide acceptability.

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IFAC’s Statements of Membership Obligations (SMOs), are globally recognized as a framework for credible and high-quality professional accountancy organizations and form the basis of the IFAC Member Body Compliance Program. IFAC member organizations are reminded of the importance of the SMOs. Translators are reminded to translate the most current version (Revised 2012), and to use IFAC’sonline system to request permission.

REQUEST PERMISSION  »

Connect with other translating bodies and related stakeholders all over the world! Please post questions, share your experience, or offer suggestions so that both you and your fellow translators can benefit.

JOIN THE FORUM »

Translated content on the Global Knowledge Gateway continues to increase with numerous Viewpoints and commentary available in several languages. Thanks to the relevant translating organizations for their efforts.

In accordance with IFAC’s policies, appropriate permissions must be in place for reproduction or translation of IFAC-copyrighted content or use of IFAC’s numerous trademarks. Please visit ourFrequently Asked Questions for more information. Permission requests may be submitted via ourOnline Permission Request and Inquiry system.

• Arabic translation of 2015 Handbook of International Public Sector Accounting Pronouncements
• French and Spanish translations of Guide to Compilation Engagements and Guide to Review Engagements
• Russian translation of 2015 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements
• Spanish translation of 2015 Handbook of International Education Pronouncements; revised versions of ISA 720, 800, 805, and 810; and Guide to Practice Management

IFAC appreciates the efforts of its designated translating bodies which have recently finalized the following translations:

The June meeting summary features updates on the IESBA’s current projects and initiatives, including: Structure of the Code of Ethics for Professional Accountants (the Code), Safeguards, Professional Skepticism, Long Association, and Part C. It also underlines a presentation from Brian Hunt, Vice Chair of the International Forum of Independent Audit Regulators.

The new standard, Responding to Non-Compliance with Laws & Regulations (NOCLAR), has been released and will be included in the 2016 Handbook in Q3. To enhance understanding and facilitate effective implementation of the standard, IESBA staff are developing Staff Q&As for publication later this year, among other resources (see more below). 

Listen to June Highlights» |  Read June Meeting Summary»

On July 14, the IESBA released the new NOCLAR standard, which sets out a first-of-its-kind framework to guide professional accountants in what actions to take in the public interest when they become aware of potential violations of laws and regulations committed by a client or employer.

All Access NOCLAR »

IESBA Chairman, Consultative Advisory Group (CAG) Chairman, and members discuss what accountants, including those operating in small- and medium-sized practices, and stakeholders need to know about the new standard.



Watch Videos »

The fact sheet summarizes key aspects of the new standard, including outcomes it seeks to achieve in the public interest, who will be affected by the standard, and what governments, national standard setters, professional accountancy organizations, firms, and others can do to contribute to addressing NOCLAR globally.

Access the Fact Sheet »

The Consultative Advisory Group (CAG) met via teleconference on June 20 to discuss significant matters arising on the exposure of proposals regarding Phase 1 of the IESBA’s Safeguards project.

See meeting details »

On June 15, national ethics standard setters from 13 countries met in New York to discuss projects on the IESBA’s agenda and significant ethics-related developments affecting the global accountancy profession.

The IESBA Deputy Chair presented on the vision for the IESBA’s future work at the International Organization of Securities Commission (IOSCO)’s Committee 1 meeting, in June. Hosted by the UK Financial Conduct Authority, the meeting also included presentations from the international standard setters for accounting and audit.

About IOSCO C1 »

At its June 30-July 1 meeting, the Public Interest Oversight Board (PIOB) concluded that due process had been followed in the development and approval of the NOCLAR standard and related amendments to other sections of the IESBA Code. 

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The 2015 Annual Report, Elevating Global Ethics, summarizes the IESBA's achievements, project developments, and operating context in 2015 with reports and messages from the Chairman, CAG Chairman, and Technical Director.

Access Annual Report »

IAASB Chairman Prof. Arnold Schilder and IESBA Chairman Dr. Stavros Thomadakis discuss audit quality, the Code of Ethics, NOCLAR, and professional skepticism, among other topics of mutual relevance, in this joint video interview.

Watch Now »

• September 14, 2016: IESBA CAG Meeting, New York, New York
• September 26-30, 2016: IESBA Meeting, New York, New York

From the Profiles landing page, you can discover which organizations are members and associates and access their organization and country profiles.

• Using the alphabetical listing or the interactive map, click on a country or organization name. As of August, more than 65 member organizations and 50 country profiles have been published (dark blue on the map); additional profiles will be published in the coming months. This web page also allows for a quick check of member and associate status for each organization.
• Country profiles include a listing of all IFAC member organizations in the jurisdiction, a description of the legal and regulatory environment, and the adoption status of international standards. Click the expand/collapse buttons (+) to see additional information.
• Organization profiles provide an assessment of fulfillment of the Statements of Membership Obligations as well as a brief description of the organization.

• November 15-17, 2016: IFAC Council Meeting, Brasilia, Brazil
• December 4, 2016: SMO Workshop, Jordan
• May 2017: CReCER
• May 2-5, 2017: Africa Congress of Accountants and SMO Workshop, Uganda

The IFAC Quality & Membership (Q&M) Team manages the IFAC Member Compliance Program and the membership admission process. The Program is overseen by the Compliance Advisory Panel and the Public Interest Oversight Board as one of IFAC’s public interest activities. The team acts as the primary point of contact for IFAC’s 179 member organizations and conducts targeted support and outreach activities to improve SMO fulfillment and support the adoption and implementation of international standards. Questions can be directed to compliance@ifac.org.

The IPSASB Consultative Advisory Group (CAG) held its inaugural meeting on Monday, June 20, prior to the IPSASB meeting. The CAG advises on IPSASB’s strategy, work program and agenda; projects from both technical and adoption and implementation perspectives; and other matters relevant to standard setting. The CAG discussed its role, method of operating, and value proposition. The CAG also made recommendations on IPSASB’s projects on Social Benefits, Revenue, and Non-Exchange Expenses.

An audio podcast reviewing key points of the June 2016 meeting is now available.

The IPSASB approved a Consultation Paper (CP), Public Sector Specific Financial Instruments. The main topics covered in the CP relate to the recognition and measurement of currency in circulation, monetary gold, and the International Monetary Fund quota subscription and special drawing rights. The CP will be published in July 2016 with a comment period end date of December 31, 2016. The IPSASB hopes that constituents directly involved in accounting for such transactions will share their views.

In the agenda session on governance:

• Jón Blöndal (right), a member of the Public Interest Committee (PIC), provided an update on the March 2016 PIC meeting;
• The IPSASB reviewed the Terms Of Reference for the changes mainly related to enhanced governance processes, and other changes related to past IFAC bylaw and constitutional reviews; and
• The IPSASB received confirmation of approval by the PIC of the IPSASB’s Due Process and Working Procedures.

The IPSASB approved IPSAS 39, Employee Benefits, which will replace IPSAS 25, Employee Benefits, on January 1, 2018, with earlier adoption encouraged. IPSAS 39 reflects the amendments made by the International Accounting Standards Board to its equivalent standard, International Accounting Standard 19, Employee Benefits, up to December 2015 and removes the section on Composite Social Security Programs that exists in IPSAS 25. IPSAS 39 will be published in July 2016.

The IPSASB reviewed the responses to the Consultation Paper, Recognition and Measurement of Social Benefits. The IPSASB agreed to progress the obligating event approach and the insurance approach; however, the social contract approach will not be progressed. The IPSASB agreed that the insurance approach will only be applicable to fully funded schemes, with preparers being referred to the forthcoming IFRS on insurance for the requirements.

The IPSASB approved a project brief on leases. The IPSASB formed a view that the recognition requirements of lessee accounting in IFRS 16 are appropriate for public sector financial reporting. The IPSASB considered that the appropriateness of the risks and rewards model for lessor accounting in IFRS 16 for public sector financial reporting is a key issue and directed staff to carry out in-depth analysis of the right-of-use model for lessor accounting and the relationship with IPSAS 32, Service Concession Arrangements: Grantor.

Staff presented an education session on financial instruments to the IPSASB, highlighting areas of significant change introduced by IFRS 9 Financial Instruments. The IPSASB acknowledged that the project is an IFRS convergence project which will likely result in the issuance of a new standard to replace IPSAS 29, Financial Instruments, and amendments to IAS 32, Financial Instruments: Recognition and Measurement, and IFRS 7, Financial Instruments: Disclosure. The presentation given during the June 2016 meeting is available.

The IPSASB reviewed draft chapters of its Consultation Paper (CP) on Financial Reporting of Heritage in the public sector. It supported a preliminary view that heritage items could be assets for financial reporting purposes. The chapter on measurement will be refocused on measurement for different heritage use objectives. In September, the IPSASB expects to review draft wording for its preliminary view on heritage assets and all chapters of the draft paper.

The IPSASB approved IPSAS, Impairment of Revalued Assets (Amendments to IPSAS 21, Impairment of Non-Cash-Generating Assets, and IPSAS 26, Impairment of Cash-Generating Assets), which brings property, plant and equipment and intangible assets on the revaluation model within the scope of IPSAS 21 and IPSAS 26. The amendments have an effective date of January 1, 2018.

The IPSASB considered an early draft of the Revenue and Non-Exchange Expenses Consultation Paper. The IPSASB discussed implementation issues related to IPSAS 23, Revenue from Non-Exchange Transactions (Taxes and Transfers), and options for dealing with them, particularly multi-year financing, taxes received in advance, and services in-kind. The IPSASB also agreed that transactions without performance obligations should be given more prominence. The IPSASB agreed on a revised structure for the Consultation Paper that will bring out the performance obligation and present obligation approaches clearly and reduce duplication.