IPSAS 49 establishes comprehensive accounting and reporting requirements for the financial statements of retirement benefit plans, with participants comprising current and former public sector employees and other eligible members. The new pronouncement will bring increased transparency and accountability to these public sector entities, ensuring they can fulfill their obligations to employees and other eligible participants who are members of the retirement benefit plan.
In developing principles for this pronouncement, the private sector requirements in IAS 26 were used as the starting point. The IPSASB adapted IAS 26, based on feedback from stakeholders globally, to ensure the unique characteristics of the public sector are reflected in the pronouncement. In particular, some of the policy choices available in IAS 26 have been removed as they are not appropriate for the public sector or are inconsistent with existing IPSAS.
“Retirement benefit obligations can represent a significant but often hidden liability for the public sector,” said IPSASB Chair Ian Carruthers. “IPSAS 49 provides a principle-based approach to accounting by retirement benefit plans to provide a complete view of their financial activities, assets and obligations. This increased transparency is intended to result in stronger public financial management and better-informed decision making.”
The effective date of IPSAS 49 is January 1, 2026, with earlier application permitted.
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, and the government of Canada. 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 49 has an effective date of January 1, 2026. Earlier application is permitted.
Respondents to IPSASB’s May 2022 consultation paper on Advancing Public Sector Sustainability Reporting agreed that the public sector urgently needs its own sustainability reporting standards and that the IPSASB, with its 25 years of standard setting experience, should lead their development. Public sector specific sustainability reporting standards will equip governments and other public sector entities to provide better transparency, accountability, and comparability of their efforts to combat the climate crisis and other sustainability challenges.
Following a scoping and research phase, the IPSASB has decided to move forward with the development of a public sector specific Climate-Related Disclosures standard and has published a project brief for this major new piece of work. Reporting on climate change is one of the most important issues in sustainability reporting, which also encompasses environmental, social and governance issues.
“The IPSASB’s decision to develop a public sector specific Climate-Related Disclosures standard is a huge first step in addressing the public sector’s need for sustainability reporting standards.” said IPSASB Chair Ian Carruthers. “The Board is delighted to be able to respond to stakeholder calls in this way and hopes to be able to initiate other projects in this critical area in the coming months.”
With this launch, the IPSASB will establish a Climate-related Topic Working Group to provide climate-related expertise and advice to support delivery of the project. The IPSASB will also set up a Sustainability Reference Group to provide advice on its overall sustainability reporting standards development program.
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 be able to scale up its efforts and move with pace. To contribute financial or other support for the development of global public sector specific sustainability reporting standards, please contact 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, 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.
The IPSASB has today announced that it will move ahead with the development of the first sustainability reporting standard for the public sector
On June 12, 2023, the Consultative Advisory Group (CAG) of the International Public Sector Accounting Standards Board (IPSASB) elected Ms. Fabienne Colignon as its chair to lead its advisory efforts for the next three years. The CAG advises the IPSASB on technical projects and issues, as well as on its Strategy, adoption of standards, and other pressing issues.
Ms. Colignon is a long-serving, active and experienced member of the CAG and a regular observer of the IPSASB since her appointment in 2016. Ms. Colignon has extensive expertise in public sector accounting and reporting through her role with the French Public Sector Accounting Standard-Setter, Conseil de Normalisation des Comptes Publics (the CNoCP), a council body within the Ministry of Finance, and her prior experience as a Practice Fellow with the IFRS Interpretations Committee.
Ms. Colignon now takes the helm of the IPSASB CAG, which is composed of 22 representatives of public sector organizations and individuals that are interested in, or affected by, the IPSASB’s work, including those engaged in the preparation, audit, or evaluation of public sector financial reports. Ms. Colignon will succeed Mr. Thomas Müller-Marqués Berger who has led the IPSASB CAG since its inception in 2016.
“I am very appreciative of the trust CAG members have placed in me,” said Ms. Colignon. “I am honored to lead this exceptional group of public sector experts as it continues to serve as the IPSASB’s strategic advisor, helping to set priorities and to advance the public interest, especially during this uniquely challenging time.”
“On behalf of the IPSASB, it is my great pleasure to welcome Fabienne as CAG Chair,” said IPSASB Chair Ian Carruthers. “Fabienne takes on her new role at a critical time as we enter a new phase of our financial reporting work, at the same time as beginning to advance public sector sustainability reporting. I’m confident her background and experience will ensure the perspectives of CAG members continue to enrich the IPSASB’s work in developing high-quality public sector reporting standards. I would also like to take this opportunity on behalf of IPSASB to thank Thomas Muller-Marques Berger for his outstanding leadership over the last 7 years as the inaugural CAG Chair. Under his strong leadership the CAG has matured in its role and made an increasingly significant contribution to the important projects that IPSASB has successfully taken forward during this period. I look forward to working with Fabienne to help her build on the strong foundations Thomas has laid.”
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, 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.
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.
ED 84 is part of phase two of the IPSASB’s Leases project. It proposes amendments to IPSAS 43, Leases on accounting for concessionary leases, as well as new guidance on right-of-use assets in-kind and consequential amendments to IPSAS 23, Revenue from Non-Exchange Transactions (Taxes and Transfers).
“In light of the responses to the RFI, the IPSASB decided to propose new guidance on concessionary leases and right-of-use assets in-kind,” said IPSASB Chair Ian Carruthers. “The proposals in ED 84 will provide new guidance that will enhance transparency, accountability, and decision-making in the public sector.”
How to Comment To access the Exposure Draft, its summary At-a-Glance document, and the Feedback Statement or to submit a comment, visit the IPSASB website. Comments are requested by May 16, 2023. The IPSASB encourages IFAC members, associates, and regional accountancy organizations to promote the availability of this Consultation Paper to their members and employees. 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, 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.
Stakeholder comments on Exposure Draft 84 sought by May 17, 2023
The International Public Sector Accounting Standards Board (IPSASB) has released Exposure Draft (ED) 84, Concessionary Leases and Right-of-Use Assets In-kind (Amendments to IPSAS 43 and IPSAS 23).
ED 84 is part of phase two of the IPSASB’s Leases project. It proposes amendments to IPSAS 43, Leases on accounting for concessionary leases, as well as new guidance on right-of-use assets in-kind and consequential amendments to IPSAS 23, Revenue from Non-Exchange Transactions (Taxes and Transfers).
The International Public Sector Accounting Standards Board (IPSASB) has welcomed the contribution from the ACCA (Association of Chartered Certified Accountants) to support its proposed development of a public sector specific sustainability reporting framework.
“ACCA’s contribution provides welcome support for our initiative to develop urgently-needed public sector specific sustainability reporting standards,” said Ian Carruthers, IPSASB Chair. “Despite strong stakeholder support for our proposals, our expertise in standard setting alone cannot take us over the finishing line. Financial support from the global community is essential if we are to equip governments with the quality standards necessary to report on their critical contributions to addressing the global climate emergency and other sustainability issues.”
Helen Brand, chief executive, ACCA said, “We are pleased to be the initial funders of the IPSASB's critical work to develop international sustainability reporting guidance that is fit for the public sector. The world's sustainability aspirations, including net zero and inclusive growth, will not be met without concerted government action and a robust reporting framework. ACCA believes that the IPSASB has the right international networks and due process to complete this sustainability work program. Alongside the investment, ACCA will be working closely with IFAC, the IPSASB, and our other public sector partners to advance the field of sustainability reporting for the public sector.”
The IPSASB announced last week that it is moving into a research and scoping phase for three potential initial public sector specific sustainability reporting projects and has called upon the global community for its help in securing the resources needed to begin guidance development.
To contribute financial or other support to the IPSASB for the development of global public sector specific sustainability reporting guidance, please email Ross Smith, IPSASB Program and Technical Director (rosssmith@ipsasb.org) or James Gunn, Managing Director, Professional Standards (jamesgunn@profstds.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, 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.
About ACCA
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We’re a thriving global community of 241,000 members and 542,000 future members based in 178 countries and regions, who work across a wide range of sectors and industries. We uphold the highest professional and ethical values. We offer everyone everywhere the opportunity to experience a rewarding career in accountancy, finance and management. Our qualifications and learning opportunities develop strategic business leaders, forward-thinking professionals with the financial, business and digital expertise essential for the creation of sustainable organisations and flourishing societies. Since 1904, being a force for public good has been embedded in our purpose. In December 2020, we made commitments to the UN Sustainable Development Goals which we are measuring and will report on in our annual integrated report. We believe that accountancy is a cornerstone profession of society and is vital helping economies, organisations and individuals to grow and prosper. It does this by creating robust trusted financial and business management, combating corruption, ensuring organisations are managed ethically, driving sustainability, and providing rewarding career opportunities. And through our cutting-edge research, we lead the profession by answering today’s questions and preparing for the future. We’re a not-for-profit organisation. Find out more at accaglobal.com.
