ED 90 proposes amendments to IPSAS to introduce current operational value, add a definition of accounting estimates to IPSAS 3, Accounting Policies, Changes In Accounting Estimates and Errors, and enhance the terminology in current value measurement disclosures.
The Public Interest Committee (PIC) and the International Federation of Accountants (IFAC) are pleased to announce the establishment of a Search Committee to select the next Chair of the International Public Sector Accounting Standards Board (IPSASB) for an initial three-year term starting on January 1, 2026. The appointee will succeed Ian Carruthers, IPSASB Chair since 2016.
The Search Committee will be chaired by Mr. Vinod Rai, who served as the 11th Comptroller and Auditor General of India, and the chairman of the UN Panel of External Auditors. Mr. Rai has been recognized for strengthening public sector accountability and his legacy includes setting high standards for financial management and improvements in governance practices.
The Search Committee includes the following members:
Fergal Costello, Ireland, Principal, Department of Public Expenditure;
Assietou Sylla Diouf, Togo, Global Managing Director, Integrate Health;
Davit Gamkrelidze, Georgia, Head of the State Treasury; and
Heather Taylor, Canada, EY Partner, Climate Change & Sustainability Services.
The Search Committee will start its work in early September and plans to issue its Call for Applications for the next IPSASB Chair by mid-November 2024.
Mr. Rai, Search Committee Chair: “Strengthening the public sector to ensure sustainable and strong economic growth is my lifelong passion and career. I am honored by the opportunity to lead the search for this key position working with such esteemed colleagues from around the globe.”
Jon Blondal, PIC Co-Chair: “The standards promulgated by the IPSASB have contributed greatly to the advancement of accrual accounting and modernizing public financial management around the world. We look forward to the work of the Search Committee in identifying the next Chair of the IPSASB.”
Lee White, IFAC Chief Executive Officer: “With the timely broadening of the IPSASB's scope to include sustainability reporting, the IPSASB's next chair will be vital in continuing this development, which IFAC strongly supports. IPSASB's standards are crucial to effective public sector financial management and strong and sustainable public sector organizations. I am confident that the independent Search Committee, led by Mr. Rai, will find a strong Chair to continue the legacy built by Mr. Carruthers and his predecessors.”
About IFAC IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.
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.
About the IPSASB
The International Public Sector Accounting Standards Board® (IPSASB®) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards™ (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and The World Bank. 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.
The IPSASB approved the Final Pronouncement, Concessionary Leases and Other Arrangements Conveying Rights over Assets (Amendments to IPSAS 43, IPSAS 47, and IPSAS 48). The effective date for the relevant amendments is January 1, 2027.
Measurement-Application Phase
The IPSASB approved Exposure Draft (ED) 90, Amendments to IPSAS as a Result of the Application of IPSAS 46,Measurement. This ED proposes amendments to IPSAS to introduce current operational value, and add a definition of accounting estimates to IPSAS 3, Accounting Policies, Changes In Accounting Estimates and Errors. ED 90 will be published in Q3 2024 with a 120-day comment period.
IPSAS 33–Limited Scope Update
The IPSASB approved ED 91, Limited-scope Updates to First-time Adoption of International Public Sector Accounting Standards (IPSAS) (Amendments to IPSAS 33). This ED proposes amendments to existing requirements to emphasize exemptions available to those using the standard. The ED also proposes non-authoritative guidance to help clarify the standard's application for first-time adopters, including information to help identify the appropriate point to apply IPSAS 33 in their overall transition plan to accrual-basis IPSAS. ED 91 will be published in Q3 2024 with a 120-day comment period.
Sustainability-Climate-Related Disclosures
The IPSASB continued the development of the Climate-related Disclosures ED by reviewing the proposed principles on metrics and targets, transitional provisions, and general requirements. The IPSASB clarified that the ED will address public policy programs (such as regulations, taxation, subsidies, and incentives) that are explicitly designed to address climate-related risks and opportunities. The IPSASB plans to approve the ED at its September 2024 meeting.
Natural Resources
The IPSASB continued developing its Natural Resources ED by reviewing the draft specific matters for comment, core text, application guidance, and basis for conclusions. In addition, the IPSASB agreed on the topics for which implementation guidance and illustrative examples would be developed in the ED. The IPSASB plans to approve the ED at its September 2024 meeting.
Strategy and Work Program
The IPSASB reviewed the responses received to its 2024-2028 Strategy and Work Program Consultation. The proposals were strongly supported by stakeholders, which only required the IPSASB to make minor clarifications. The IPSASB plans to approve the final 2024-2028 Strategy and Work Program at its September 2024 meeting.
Presentation of Financial Statements
The IPSASB continued the development of its Consultation Paper and Illustrative ED related to the project to develop a replacement for IPSAS 1, Presentation of Financial Statements. The IPSASB considered several important project issues, including agreeing to retain the current/non-current distinction as the primary method for classifying assets and liabilities on the statement of financial position. The IPSASB will continue its deliberations on this project in September 2024.
Next Meeting
The next IPSASB meeting will be hosted by the European Commission in Brussels, Belgium from September 17 to 20, 2024.
Adoption & Implementation Resources
Pathways to Accrual: Find resources helpful for planning and undertaking a transition from cash to accrual accounting including adopting and implementing IPSAS.
e-International Standards: Access the IPSASB’s standards and pronouncements on a convenient digital platform.
Implementing IPSAS: Download a package of training materials on IPSAS that can be tailored to the needs of training participants.
The International Public Sector Accounting Standards Board (IPSASB), with support from the World Bank, is developing a climate-related disclosures standard for the public sector.
The IPSASB, developer of international reporting standards for use by governments and other public sector entities around the world, announced in June 2023 it would begin developing a Climate-related Disclosures standard, a first for the public sector. This standard will be the IPSASB’s inaugural Sustainability Reporting Standard (IPSASB SRS™). By increasing transparency, it will enable governments and other public sector entities to make more informed decisions about their contributions towards addressing the climate emergency, hold them accountable for their interventions, and foster trust in their efforts.
The World Bank, an institution dedicated to providing financing, policy advice, and technical assistance to governments of developing countries, has put their support behind this critical initiative to develop the IPSASB's first SRS on Climate-related Disclosures. An initial draft standard will be released for feedback in Q4 2024.
Alongside this announcement, the IPSASB has also published a Stakeholder Engagement Plan outlining how people can provide feedback about the project, through mechanisms that are already a central part of the IPSASB’s due process.
“Equipping governments with the quality standards necessary to report on their critical contributions to addressing the climate emergency together with other sustainability issues requires global support,” said Ian Carruthers, IPSASB Chair. “The World Bank’s contribution provides welcome support for our initiative to develop urgently-needed public sector specific sustainability reporting standards, beginning with a Climate-related Disclosures standard.”
“The standard will take climate reporting to a new level and will complement the reporting requirements of the Paris Agreement which come into effect this year,” said Arturo Herrera, World Bank Global Director for Governance. “Many countries lack a way to track and assess progress against their climate-related commitments, and to identify and disclose risks and impacts. This is especially true for developing countries, many of which are among the most at-risk from climate change. At the same time, SRS disclosure can help attract new investment from the private sector. Some of the world’s biggest investors look at ESG performance in deciding where to invest. The new standard will provide that information.”
Global community engagement is essential to developing sustainability reporting standards for the public sector. The IPSASB continues to seek support for its sustainability reporting standards development program and requires additional resources to scale up its efforts and move with pace. To contribute financial or other support to the IPSASB for the development of IPSASB SRS, please email Ross Smith, IPSASB Program and Technical Director (rosssmith@ipsasb.org).
About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and the World Bank. 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.
The World Bank is an international organization that provides financing, advice, and research to developing nations to help advance their economies. It is one of the world’s largest sources of funding and knowledge for developing countries. The World Bank is headquartered in Washington, D.C. and is affiliated with the United Nations. It is made up of five institutions with one common mission: to end extreme poverty and boost shared prosperity on a livable planet.
Funding for the project is through the World Bank’s Financial Management Umbrella Program. The Program is supported by the Australian Department of Foreign Affairs and Trade, the Government of Austria, the Bill & Melinda Gates Foundation, the European Union, the Swedish International Development Cooperation Agency, Switzerland’s State Secretariat for Economic Affairs, the United Kingdom’s Foreign, Commonwealth and Development Office, and the United States Agency for International Development.
The IPSASB’s first Sustainability Reporting Standard, Climate-related Disclosures, is now in development
