Improvements to IPSASs 2011

  • Improvements to IPSASs 2011

    Project Status

    ED 45, Improvements to IPSASs 2011 approved in September 2011.

    Staff

    Ross Smith

    Task Force

    A Staff project.

    Objective(s) of project

    To propose general improvements to existing IPSASs.

    Scope

    The project applies to a number of IPSASs.

    Task Force progress / Board discussions to date

    September 2011: The IPSASB reviewed responses to the March 2011 Exposure Draft, ED 45, Improvements to IPSASs 2011

    The IPSASB discussed an issue raised by four respondents relating to the proposal in ED 45 to delete the requirements in IPSAS 16, Property, Plant, and Equipment and IPSAS 17, Investment Property on exchanges of assets that lack commercial substance.  These respondents disagreed with this proposal because they consider that exchanges of assets that lack commercial substance are not non-exchange transactions and so guidance is required on what to do when this situation arises.  The respondents propose that the relevant requirements are retained in IPSAS 16 and IPSAS 17.

    The IPSASB discussed this issue and agreed that it relates to changes in an entity’s net assets/equity position and whether revenue arises as a result of the transaction. The IPSASB agreed that deleting the guidance would not be an improvement to IPSAS 16 and 17.  They also agreed to consider revising the terminology “lacks commercial substance” in the next improvements project.

    The IPSASB approved Improvements to IPSASs 2011 with an effective date of January 1, 2013.  

    March 2011: The IPSASB approved Exposure Draft (ED) 45, Improvements to IPSASs 2011. The proposed amendments are in three parts. Part I proposes to delete the Introduction section of each IPSAS that has one (i.e., 21 of 31 IPSASs). Part II proposes to add an Objective paragraph to those IPSAS which do not currently include an Objective paragraph (IPSASs 6–8 and 10). Part III proposes improvements to four IPSASs (IPSAS 16, 17, 19 and 21). The comment deadline will be June 30, 2011.

    Last updated: 2011

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