IPSASB eNews: September 2023

The IPSASB approved the 2024-2028 Strategy and Work Program Consultation. The proposals emphasize a greater focus on maintenance of IPSAS, including developing a Post-Implementation Review process and reaffirms the IPSASB decision to develop public sector sustainability reporting standards.

The IPSASB will hold in-person regional roundtables during the Consultation which will be open for 4-months.

The IPSASB approved IPSAS 49, Retirement Benefit Plans. This pronouncement provides accounting and reporting requirements for plans that provide retirement benefits to public sector employees. 

IPSAS 49 will be effective for periods beginning on or after January 1, 2026.

The IPSASB continued to review the responses to Exposure Draft (ED) 84, Concessionary Leases and Right-of-Use Assets In-kind. During the meeting, the IPSASB agreed to proceed with the proposed principles with an aim to finalize the amendments to the Leases and Revenue Standards by March 2024.

The IPSASB reviewed the applicability of current operational value to several IPSAS and concluded it applies to assets within the scope of IPSAS 32, Service Concession Arrangements: Grantor, but decided to perform further analysis on its applicability for IPSAS 12, Inventories, and IPSAS 43, Leases.

The IPSASB considered proposals to revise the definition of, and guidance on, recoverable service amount in IPSAS 21, Impairment of Non-Cash-Generating Assets. The IPSASB will consider illustrative examples at the December meeting.

The IPSASB reflected on the findings from its research and scoping phase and decided not to pursue a standard setting solution. Instead it decided to seek a partner to help develop practical application material to help preparers more easily navigate and apply IPSAS. The IPSASB aims to publish a feedback statement by early 2024 to summarize the full rationale supporting its decision.

The IPSASB received an education session on IPSAS 22, Disclosure of Financial Information about the General Government Sector and IPSAS 24, Presentation of Budget Information in Financial Statements and concluded the scope of the project should be consistent with the scope of IPSAS 1, Presentation of Financial Statements. The IPSASB approved the project brief for the Presentation of Financial Statements project. 

The IPSASB approved ED 85, Improvements to IPSAS, 2023. ED 85 is expected to be published in October 2023 with a consultation period of 60 days.

The IPSASB received presentations from the IFRS Foundation, International Sustainability Standards Board, and New Zealand External Reporting Board to receive updates on their work related to sustainability reporting guidance and better understand their journeys specifically related to development of climate-related reporting standards.

Using the project brief approved in June 2023, the IPSASB agreed on its approach to developing its climate-related disclosure standard, including how it would incorporate climate expertise into the process.

The IPSASB agreed to revise the definition of a natural resource as a naturally occurring item which embodies service potential or the capability to generate economic benefits.

The IPSASB also decided to reconsider the proposals on recognition and measurement, and whether the proposed guidance should be located in a standalone standard or as amendments to existing IPSAS. 

In response to comments received to the Natural Resources Consultation Paper, the IPSASB reviewed a first draft of an ED aligned with IFRS 6, Exploration for and Evaluation of Mineral Resources, including guidance aligned with IFRIC 20, Stripping Costs in the Production Phase of a Surface Mine.

The IPSASB considered several alternatives to address the public need to clarify and make IPSAS 33, First-time Adoption of Accrual Basis IPSASs, more user friendly and effective. The IPSASB will review a proposal for updates to IPSAS 33 at its December meeting where material will be rearranged by topic and supported by non-authoritative guidance.

Following a rigorous nominations and interview process involving the IFAC Nominating Committee and IPSASB leadership, overseen by the Public Interest Committee and approved by the IFAC Board, the IPSASB announced its new and reappointed Board members and Deputy Chair for 2024, as well as the extension of its Chair through 2025.

Recordings of the meetings are available on our YouTube channel.

The next meeting of the IPSASB will take place December 5-8 in Toronto, Canada. Learn more or register as an observer.