Objective
To update various IPSASs affected by the IASBs Annual Improvements project issued in May 2008.
Scope
The project applies to a number of IPSASs primarily drawn from IFRS.
Background
The IASB issued improvements to 19 IFRSs in May 2008. There are 13 IPSAS equivalents of the IFRSs improved in May 2008.
Issues
Identifying whether there are any public sector issues related to the improvements adopted by the IASB which relate to IFRSs from which current IPSASs have been primarily drawn.
Task Force progress / Board discussions to date
January 2010: The IPSASB issued Improvements to IPSASs. It is effective for annual periods beginning on or after January 1, 2011.
December 2009: The IPSASB reviewed responses to the May 2009 Exposure Draft, ED 42, Improvements to IPSASs. The Board made a decision that the amendment to IPSAS 5, Borrowing Costs should be excluded from this project and addressed in the separate Borrowing Costs project. The IPSASB accepted the Staff view that the proposed amendment to IPSAS 6, Consolidated and Separate Financial Statements should not be adopted. This is because the underlying improvement to IAS 27, Consolidated and Separate Financial Statements relates to IFRS 5, Non-Current Assets Held for Sale and Discontinued Operations. As the IPSASB does not have an equivalent of IFRS 5, the proposed amendment was not necessary. The Board also agreed to remove the distinction between Part I (more substantive changes) and Part II (editorial changes). The IPSASB approved Improvements to IPSASs for issuance in January 2010, with an effective date of January 1, 2011.
May 2009: The IPSASB considered a rules of the road analysis of an improvement to IAS 23, Borrowing Costs that had not previously been addressed. The IPSASB agreed that this improvement should be included in ED 42, Improvements to IPSASs. The IPSASB approved ED 42 with a consultation expiry date of September 30, 2009.
February 2009: The IPSASB decided that the initial project should only deal with improvements in place at December 31, 2008. The project will therefore not deal with proposed improvements issued by the IASB in August 2008. The IPSASB confirmed that improvements related to intangible assets, financial instruments and agriculture should be dealt with in the specific projects covering those areas.
Staff were directed to bring a rules of the road analysis for the improvement to the definition of borrowing costs adopted in IAS 23, Borrowing Costs in May 2008, so that the Board will be in a position to consider the improvement, dependent upon the approach taken to ED 35, Borrowing Costs following further consultation.
IPSASB made a tentative decision to initiate a further broader scope improvements project in 2010.