IPSASB proposes to align IPSASs with recent IASB pronouncements

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05 Aug, 2014

The International Public Sector Accounting Standards Board (IPSASB) has released an exposure draft of proposed improvements to International Public Sector Accounting Standards (IPSASs). The proposals incorporate relevant amendments made by the International Accounting Standards Board (IASB) in the 2009-2011 and 2010-2012 cycles of annual improvements, and the changes made by 'Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and IAS 38)'.

The proposals are contained in IPSASB Exposure Draft 55 Improvements to IPSASs 2014 and would see amendments made to four IPSASs:

  • IPSAS 1, Presentation of Financial Statements - clarification of comparative information requirements
  • IPSAS 17, Property, Plant and Equipment - classification of servicing equipment, clarification of the revaluation methodology, acceptable methods of depreciating assets
  • IPSAS 28, Financial Instruments: Presentation - tax effects of distributions to holders of equity instruments
  • IPSAS 31, Intangible Assets - clarification of the revaluation methodology, clarification of acceptable methods of amortising assets.

The exposure draft contains an appendix which outlines all of the items the IPSASB considered including in the document, and the rationale as to why changes equivalent to those made by the IASB in recent narrow scope amendment projects have not been proposed by the IPSASB. Reasons include where:

  • IASB amendments relate to IFRSs without an equivalent IPSAS, e.g. first-time adoption, business combinations , share-based payments and interim financial reporting (in some cases, the IPSASB has projects underway in these topic areas)
  • the existing IPSAS is not fully converged with IFRSs, e.g. borrowing costs, related parties, employee benefits, segment reporting, financial instruments
  • minor amendments are not considered relevant.

The exposure draft does not indicate a proposed effective date for the amendments if they are finalised. The comment period on the exposure draft closes on 30 September 2014. Click for access to the exposure draft (link to the IFAC website).

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