This updated Questions and Answers publication has been issued by IPSASB staff to highlight how IPSAS reflect the accounting consequences of sovereign debt restructuring transactions.
The International Public Sector Accounting Standards Board® (IPSASB®) has released IPSAS 41, Financial Instruments.
IPSAS 41 substantially improves the relevance of information for financial assets and financial liabilities. It will replace IPSAS 29, Financial Instruments: Recognition and Measurement, and improves that Standard’s requirements by introducing:
“The significance of government debt to global capital markets can often be ignored,” said IPSASB Chair Ian Carruthers. “IPSAS 41 is a major step forward in accounting for financial instruments, and responds to the problems with IPSAS 29 that were exposed by the global financial crisis. It provides principles that appropriately reflect the economics of transactions involving financial instruments, replacing the more rules-based approach of its predecessor.”
IPSAS 41 is based on International Financial Reporting Standard (IFRS) 9, Financial Instruments, developed by the International Accounting Standards Board (IASB®), but it also includes public sector-specific guidance and illustrative examples on:
About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through the development of accrual-based International Public Sector Accounting Standards® (IPSAS®) and other guidance for use by governments and other public sector entities. It receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.
About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.
IPSAS 41, Financial Instruments, establishes new requirements for classifying, recognizing and measuring financial instruments to replace those in IPSAS 29, Financial Instruments: Recognition and Measurement.
IPSAS 41 provides users of financial statements with more useful information than IPSAS 29, by:
The following slide deck presents an overview of the revised and restructured Code of Ethics.
00:12 - Introduction: Diane Jules, IESBA Deputy Director
00:56 - Highlights & Key Developments: Stavros Thomadakis, IESBA Chairman
04:23 - eCode: Don Thomson, eCode Working Group Chair
06:41 - Non-Assurance Services: Jens Poll, Working Group Member
11:48 - Fees: Ian McPhee, Working Group Chair
15:25 - Professional Skepticism: Patricia Mulvaney, Working Group Member
19:35 - Closing Remarks: Diane Jules