IPSASB eNews: September 2021
The IPSASB agreed to propose revised definitions for an asset and a liability for inclusion in the Exposure Draft planned for approval in December 2020.
The IPSASB agreed to add obscuring information to the existing factors influencing materiality— omissions and misstatements. The IPSASB also agreed to insert a new section on unit of account. Staff will carry out further work on the case for addressing executory contracts explicitly in the Framework.
The IPSASB clarified principles related to the existence and recognition of liabilities and assets in transactions arising with binding arrangements (in revenue and transfer expenses respectively). The IPSASB reconsidered and concluded that the distinction between transfer expenses with and without performance obligations is not useful from the transfer provider perspective.
Draft guidance in both standards will be revised to first require an entity to assess whether a binding arrangement exists, and clarify the scope of the proposed transfer expenses standard.
The IPSASB reviewed the draft Consultation Paper (CP) and considered the proposals on the presentation of information on natural resources. The IPSASB also reviewed the revised chapters on living resources and water, as well as other miscellaneous changes to the CP. The IPSASB plans to continue development of the CP at its December 2020 meeting, with an aim to approve it at its March 2022 meeting.
The IPSASB decided to proceed with the proposals from Exposure Draft 75, Leases, including reconfirming those related to COVID-19 requirements, definition of a lease, lessee’s discount rate, and fair value definition. Further, the IPSASB decided that it will continue development of the leases guidance at its October check-in meeting with a plan to approve the new final Standard at its December meeting.
The IPSASB decided that the title for the standard being developed through this project should be Retirement Benefit Plans. The IPSASB also reviewed the options in IAS 26 and decided that to provide better information and improve accountability and transparency, some of the options should be removed from the Exposure Draft under development. These options relate to the measurement and presentation of the actuarial present value of promised retirement benefits, and the valuation of plan assets.
The next full-meeting of the IPSASB will take place virtually in December, 2021. For more information, or to register as an observer, visit the IPSASB website (www.ipsasb.org)
