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 releases standard on first-time adoption of IPSASs

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

Jan 30, 2015

The International Public Sector Accounting Standards Board (IPSASB) has released IPSAS 33, “First-time Adoption of Accrual Basis IPSASs.”

The new IPSAS ad­dresses the tran­si­tion from a cash basis, an accrual basis under another re­port­ing frame­work, or a mod­i­fied version of either the cash or accrual basis of ac­count­ing. Although the new IPSAS is not aimed at IFRS con­ver­gence, the IPSASB considered the tran­si­tion ex­emp­tions in IFRS 1, First-time Adop­tion of In­ter­na­tional Fi­nan­cial Re­port­ing Stan­dards, in de­vel­op­ing the stan­dard.

IPSAS 33 allows first-time adopters three years to rec­og­nize spec­i­fied assets and li­a­bil­i­ties so that pre­par­ers have suf­fi­cient time to develop re­li­able models for rec­og­niz­ing and mea­sur­ing assets and li­a­bil­i­ties during the tran­si­tion period. These assets and li­a­bil­i­ties include in­ven­to­ries; in­vest­ment prop­erty; prop­erty, plant, and equip­ment; defined benefit plans and other long-term em­ployee ben­e­fits; bi­o­log­i­cal assets and agri­cul­tural produce; in­tan­gi­ble assets; service con­ces­sion assets and the related li­a­bil­i­ties; and fi­nan­cial in­stru­ments.

Under IPSAS 33, when a first-time adopter takes ad­van­tage of the ex­emp­tions above, fair pre­sen­ta­tion and com­pli­ance with accrual-basis IPSASs will be af­fected and the first-time adopter will not be able to make an un­re­served state­ment of com­pli­ance with accrual-basis IPSASs until the ex­emp­tions have expired or the rel­e­vant items are rec­og­nized and mea­sured in ac­cor­dance with the ap­plic­a­ble IPSASs. Still, the IPSASB be­lieved that the tran­si­tion period meets the needs of both pre­par­ers and users of fi­nan­cial state­ments and might be a further in­cen­tive for en­ti­ties to decide to apply IPSASs. Nev­er­the­less, the IPSASB en­cour­ages first-time adopters to fully comply with all the re­quire­ments of the ap­plic­a­ble IPSASs as soon as pos­si­ble.

First-time adopters must apply IPSAS 33 when their first IPSAS fi­nan­cial state­ments are for a period be­gin­ning on or after January 1, 2017. Earlier ap­pli­ca­tion is per­mit­ted. The new stan­dard and related press release are available on IFAC’s Web site.

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.