The IPSASB deferred further work on the project in 2008, pending the development of the Conceptual Framework. The development of a definition of a liability is particularly relevant to this project. Recommended Practice Guideline (RPG) 1, Reporting on the Long-Term Sustainability of an Entity’s Finances was issued in July 2013. The recommendations in this RPG cover social benefits. The IPSASB agreed to restart the project in 2013 and approved the project brief in September 2013.
Objective(s) of project
Governments and public sector entities provide constituents with social benefits in non-exchange transactions. The objective of the project is to identify the circumstances and manner in which expenses and liabilities of certain social benefits of governments arise. The project will also consider how they should be reflected in the financial statements.
The development of a new standard (or standards) specifying the recognition, measurement and presentation of certain social benefits provided to beneficiaries in non-exchange transactions. The standard or standards will cover cash transfers and the provision of individual goods and services.
For many governments and public sector entities, the provision of social benefits in non-exchange transactions is a highly significant part of their operations. The project aims to determine accounting requirements for these social benefits.
- Defining social benefits and their sub-categories;
- Determining the conceptual approach or approaches to be applied;
- Determining when a liability and an expense should be recognized;
- Measurement of liabilities; and
Task Force progress / Board discussions to date
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