This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

IPSASB publishes new IPSAS 39 and amendments to IPSAS 21 and IPSAS 26

  • IPSASB (International Public Sector Accounting Standards Board) (mid gray) Image

29 Jul 2016

The International Public Sector Accounting Standards Board has published IPSAS 39 'Employee Benefits' and 'Impairment of Revalued Assets (Amendments to IPSAS 21 and IPSAS 26)'.

IPSAS 39 Employee Benefits will replace IPSAS 25 Employee Benefits on 1 January 2018 with earlier application encouraged. IPSAS 39 is the result of Exposure Draft ED 59 Amendments to IPSAS 25, however, during redeliberation the IPSASB decided it was more user friendly to reflect the revisions proposed in ED 59 in a new format.

IPSAS 25 is based on IAS 19 Employee Benefits, which was later revised. The changes between IPSAS 39 and IPSAS 25 converge the IPSASB guidance with the updated IAS 19 to the extent appropriate for the public sector. The main changes:

  • Remove an option that allows an entity to defer the recognition of changes in the net defined benefit liability (the “corridor approach”);
  • Introduce the net interest approach for defined benefit plans;
  • Amend certain disclosure requirements for defined benefit plans and multi-employer plans; and
  • Simplify the requirements for contributions from employees or third parties to a defined benefit plan when those contributions are applied to a simple contributory plan that is linked to service.

The update also removes the requirements for composite social security programmes, which the IPSASB concluded to be no longer necessary in practice.

Impairment of Revalued Assets brings property, plant, and equipment and intangible assets on the revaluation model within the scope of the IPSASB’s two standards on impairment: IPSAS 21 Impairment of Non-Cash-Generating Assets and IPSAS 26 Impairment of Cash-Generating Assets.

Please click for the following additional information on the IPSASB website:

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.