8. Next Meeting
The IPSASB approved its Mid-Period Work Program Consultation. This consultation seeks constituent feedback on which projects the IPSASB should prioritize as its resources become available. The IPSASB will hold several regional virtual outreach events during the consultation period to directly engage with constituents.
The consultation is expected to be published in July 2021 with a 4-month comment period. Watch for the consultation for the full details on the IPSASB’s proposals.
The IPSASB approved Exposure Draft (ED) 80, Improvements to IPSAS, 2021, which includes both general improvements and IFRS related improvements to IPSAS. General improvements consist of proposals for minor amendments to IPSAS identified by stakeholders. IFRS related improvements consist of proposals for minor amendments to IPSAS sourced from recent IFRS improvements and narrow scope amendment projects.
ED 80 is expected to be published in July 2021 with a 60-day comment period.
The IPSASB reviewed the draft Consultation Paper (CP) and considered the general description of natural resources. The IPSASB discussions focused on the overall approach to determining the recognition, measurement, and disclosure of items which fit into this general description of natural resources, and those that do not, as well as how the description relates to the specific topics included in the CP. The IPSASB also discussed the description, recognition, measurement, and disclosure of water.
The IPSASB continued its discussions on Revenue and Transfer Expenses topics identified during its review of responses to the Exposure Drafts. Based on discussions, the IPSASB decided to retain the current definition of a binding arrangement, with minor revisions, and clarified specific considerations when assessing enforceability of a binding arrangement. The IPSASB also discussed the definition of a liability in the context of the ongoing projects.
The IPSASB approved IPSAS 5, Borrowing Costs – Non-Authoritative Guidance, which reaffirms the IPSASB’s decision to maintain the accounting policy choice to capitalize or expense borrowing costs directly attributable to a qualifying asset. The non-authoritative guidance added includes implementation guidance and illustrative examples to clarify how to determine the extent to which borrowing costs can be capitalized.
The main issues discussed related to prudence and materiality. The IPSASB decided not to adopt prudence as a separate qualitative characteristic (QC). Prudence will be discussed as a reinforcement of neutrality in the context of the QC of faithful representation.
The IPSASB also decided to add obscuring information to omitting and misstating information as factors that can influence the objectives of financial reporting - discharging accountability and decision making. Obscuring information by, for example, including immaterial disclosures can impair understandability.
The IPSASB decided the scope and the concept of a reporting entity in the Accounting and Reporting by Retirement Benefit Plans ED should be consistent with IAS 26, Accounting and Reporting by Retirement Benefit Plans. The IPSASB also decided the ED should require retirement benefit plans to prepare a statement of financial position, a statement of change in net assets available for benefits, a cash flow statement, notes to the financial statements and information on the changes of pension obligations.
The next full-meeting of the IPSASB will take place virtually in September, 2021. For more information, or to register as an observer, visit the IPSASB website (www.ipsasb.org)