Updating IPSASs (Tracking Table posted to the Internet as of February 2014)

  • Updating IPSASs (Tracking Table posted to the Internet as of February 2014)

    Project Status

    Tracking Table posted to the Internet March 2014.


    Ross Smith

    Task Force

    A staff project.

    Objective(s) of project

    To maintain alignment between the IPSASs which are adapted from an IFRS to the extent appropriate for the public sector. This will be accomplished by tracking the activities of the IASB so that there is a document that sets out what convergence with IFRS means. This document will help in agenda planning and in identifying amendments that can be included in the Improvements project.


    IPSASs where there is an underlying IFRS.


    In approving this project, the IPSASB notes that updating IPSASs is not so much a distinct project but more a continuous cycle to ensure that IPSASs reflect, as much as is appropriate for the public sector, the latest related IFRS.

    From the start of its standards program, the IPSASB has developed accrual IPSASs by adapting existing IFRSs issued by the IASB for the public sector context when appropriate. In undertaking that process, the IPSASB attempts, wherever possible, to maintain the accounting treatment and original text of the IFRS unless there is a significant public sector issue which warrants a departure.


    Issues the project needs to take into consideration include (but are not necessarily limited to):

    • The IASBs work program: The timing for updating IPSASs will be subject to the IASBs progress on related projects; and
    • The extent/nature of the IASBs amendments: Progress on updating IPSASs could be affected where the amendments made by the IASB are either significant and/or raise major public sector specific issues.

    Task Force progress / Board discussions to date

    June 2014: The IPSASB considered Exposure Draft 55, Improvements to IPSASs 2014 (ED 55).

    The last biennial improvements project was in 2011. A further project was scheduled for 2013, but, was deferred due to staffing resources. The improvements project allows for minor non-consequential unrelated amendments to be exposed together and approved in a single standard.

    Staff presented ED 55 and discussed the proposed amendments which were derived from amendments made through the IASB’s improvements and narrow scope amendments projects.

    The IPSASB agreed that a portion of an amendment related to the presentation of comparative information and an amendment related to financial instruments be included in ED 55.

    The IPSASB decided to include a detailed table in the appendix to ED 55, showing the IASB amendments considered and the reasons for including or excluding each amendment.

    The IPSASB completed a page-by-page review in which it identified some minor changes. The IPSASB then approved the ED.

    March 2011: The IPSASB agreed that the Tracking Table would continue to be updated for every meeting.

    November 2010: The IPSASB considered the revised document outlining substantial convergence with underlying IFRSs (hereafter called the Tracking Table) and agreed that it is a useful document for constituents, as well as the Board, and so agreed that it should be posted on the IPSASBs website.

    June 2010: The IPSASB considered a document setting out each IPSAS adapted from an underlying IFRS, including the version of the underlying IFRS, whether there is a more recent IFRS, and whether there are any further consequential amendments to the underlying IFRS subsequent to its issue date. The Board agreed that this document is useful and can be used to assist the agenda setting process. The IPSASB directed the staff to add to this document an assessment of which project the underlying amendment will be considered and a list of IFRSs with no comparable IFRS with the IPSASBs rationale for not having a standard on this topic.

    April 2010: The IPSASB directed the staff to prepare a document setting out precisely what convergence with IFRS means.

    May 2009: The IPSASB considered the Staffs analysis of the responses to the further input received from respondents of ED 35, Borrowing Costs. The Board agreed to consider the issue further using the preliminary views developed in the Measurement phase of its Conceptual Framework project.

    February 2009: The IPSASB considered the Staffs analysis of the responses to ED 35, Borrowing Costs. Generally, the Board agreed that there was no clear mandate from respondents to finalize ED 35. However, there was also no clear indication as to the direction the Board should take. The Staff will seek further clarification and additional input from all respondents regarding their responses for further discussion at the IPSASBs May 2009 meeting.

    September 2008: ED 35, Borrowing Costs (Revised 200X) published with a comment date of January 7, 2009.

    August 2008: ED 35, Borrowing Costs (Revised 200X) approved for issue.

    June 2008: The IPSASB considered further its project to amend IPSAS 5, Borrowing Costs and reaffirmed its view that expensing of borrowing costs is its preferred position, but that capitalization of borrowing costs specifically incurred for the acquisition, construction or production of qualifying assets (not to be limited to cash-generating assets) should be permitted in accordance with professional judgment. An exposure draft to amend IPSAS 5 is being developed which the IPSASB plans to approve before its next meeting in October 2008.

    March 2008: The IPSASB considered responses to Exposure Draft 33, Amendments to IPSAS 4, The Effects of Changes in Foreign Exchange Rates - approving the revised IPSAS with minor amendments. The key issue in revising IPSAS 4 was convergence with IAS 21, The Effects of Changes in Foreign Exchange Rates for which the IPSASB agreed that IPSAS 4 would be issued with some additional commentary to clarify the operation of the IPSAS in the public sector. The revised IPSAS 4 will be issued with the 2008 IPSASB Handbook.

    The IPSASB also considered a proposal to converge IPSAS 5, Borrowing Costs with IAS 23, Borrowing Costs. They concluded that IAS 23 was not intended to apply to not-for-profit or public sector entities mainly because the qualifying assets acquired by public sector entities are not normally intended to generate cash inflows or be operated in a commercial manner. Therefore it was agreed to develop IPSAS 5 to allow the capitalization of borrowing costs for cash generating assets and require expensing of borrowing costs in all other circumstances. The public sector specific reasons for this departure from IAS 23 will be documented in the Basis for Conclusion of a draft Exposure Draft scheduled to be considered at the IPSASB's next meeting in June 2008.

    September 2007: Exposure Draft 33,
    Amendments to IPSAS 4, The Effects of Changes in Foreign Exchange Rates
    published with a comment date of December 31, 2007.

    July 2007: The IPSASB considered updates to three IPSASs:

    IPSAS 4, The Effects of Changes in Foreign Exchange Rates: The IPSASB agreed with the proposed changes which reflect the most recent changes to IAS 21. An Exposure Draft of proposed changes is planned for IPSASB approval (out-of-session) before November 2007.

    IPSAS 5, Borrowing Costs: The IPSASB's key issue in converging with IAS 23 is removing the option of immediately expensing borrowing costs directly attributable to the acquisition, construction and production of a qualifying asset. Views are divided as to the validity of arguments supporting their being a public sector specific reason for retaining the option. An issues paper further exploring the arguments is to be developed for consideration at the IPSASB's November 2007 meeting.

    IPSAS 18, Segment Reporting: The IPSASB is concerned about whether the under-lying basis of IFRS 8 is readily transferable to the public sector. An example raised was the difficulty in identifying the chief operating decision maker in public sector entities. Possible implications for the Conceptual Framework project may also need consideration. The IPSASB decided that existing IPSAS 18 be retained unchanged and that for November 2007, a timetable be developed for its potential future updating.

    March 2007: The IPSASB approved a project brief for the commencement of improvements, over 2007-2009, to the following nine IPSASs:

    • IPSAS 1, Presentation of Financial Statements;
    • IPSAS 4, The Effects of Changes in Foreign Exchange Rates;
    • IPSAS 5, Borrowing Costs;
    • IPSAS 6, Consolidated and Separate Financial Statements;
    • IPSAS 8, Interests in Joint Ventures;
    • IPSAS 9, Revenue from Exchange Transactions;
    • IPSAS 18, Segment Reporting;
    • IPSAS 19, Provisions, Contingent Liabilities and Contingent Assets; and
    • IPSAS 20, Related Party Disclosures.

    The actual timing and extent of improvements are to be finalized by staff and discussed with the IPSASB at each Board meeting as necessary.


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