The International Public Sector Accounting Standards Board® (IPSASB®), developer of IPSAS®, international accrual-based accounting standards for use by governments and other public sector entities around the world has opened a consultation to hear stakeholder feedback on its proposed strategy and work program for 2024-2028.
The IPSASB held its third meeting of the year from September 12-15 in Switzerland hosted by the Canton of Zurich.
The IPSASB’s Next Strategy and Work Program
The IPSASB approved the 2024-2028 Strategy and Work Program Consultation. The proposals emphasize a greater focus on maintenance of IPSAS, including developing a Post-Implementation Review process and reaffirms the IPSASB decision to develop public sector sustainability reporting standards.
The IPSASB will hold in-person regional roundtables during the Consultation which will be open for 4-months.
Retirement Benefit Plans
The IPSASB approved IPSAS 49, Retirement Benefit Plans. This pronouncement provides accounting and reporting requirements for plans that provide retirement benefits to public sector employees.
IPSAS 49 will be effective for periods beginning on or after January 1, 2026.
Other Lease-Type Arrangements
The IPSASB continued to review the responses to Exposure Draft (ED) 84, Concessionary Leases and Right-of-Use Assets In-kind. During the meeting, the IPSASB agreed to proceed with the proposed principles with an aim to finalize the amendments to the Leases and Revenue Standards by March 2024.
Measurement-Application Phase
The IPSASB reviewed the applicability of current operational value to several IPSAS and concluded it applies to assets within the scope of IPSAS 32, Service Concession Arrangements: Grantor, but decided to perform further analysis on its applicability for IPSAS 12, Inventories, and IPSAS 43, Leases.
The IPSASB considered proposals to revise the definition of, and guidance on, recoverable service amount in IPSAS 21, Impairment of Non-Cash-Generating Assets. The IPSASB will consider illustrative examples at the December meeting.
Differential Reporting
The IPSASB reflected on the findings from its research and scoping phase and decided not to pursue a standard setting solution. Instead it decided to seek a partner to help develop practical application material to help preparers more easily navigate and apply IPSAS. The IPSASB aims to publish a feedback statement by early 2024 to summarize the full rationale supporting its decision.
Presentation of Financial Statements
The IPSASB received an education session on IPSAS 22, Disclosure of Financial Information about the General Government Sector and IPSAS 24, Presentation of Budget Information in Financial Statements and concluded the scope of the project should be consistent with the scope of IPSAS 1, Presentation of Financial Statements. The IPSASB approved the project brief for the Presentation of Financial Statements project.
Improvements to IPSAS 2023
The IPSASB approved ED 85, Improvements to IPSAS, 2023. ED 85 is expected to be published in October 2023 with a consultation period of 60 days.
Sustainability-Climate-Related Disclosures
The IPSASB received presentations from the IFRS Foundation, International Sustainability Standards Board, and New Zealand External Reporting Board to receive updates on their work related to sustainability reporting guidance and better understand their journeys specifically related to development of climate-related reporting standards.
Using the project brief approved in June 2023, the IPSASB agreed on its approach to developing its climate-related disclosure standard, including how it would incorporate climate expertise into the process.
Natural Resources
The IPSASB agreed to revise the definition of a natural resource as a naturally occurring item which embodies service potential or the capability to generate economic benefits.
The IPSASB also decided to reconsider the proposals on recognition and measurement, and whether the proposed guidance should be located in a standalone standard or as amendments to existing IPSAS.
Natural Resources-IFRS 6 Alignment
In response to comments received to the Natural Resources Consultation Paper, the IPSASB reviewed a first draft of an ED aligned with IFRS 6, Exploration for and Evaluation of Mineral Resources, including guidance aligned with IFRIC 20, Stripping Costs in the Production Phase of a Surface Mine.
First-Time Adoption of Accrual Basis IPSASs
The IPSASB considered several alternatives to address the public need to clarify and make IPSAS 33, First-time Adoption of Accrual Basis IPSASs, more user friendly and effective. The IPSASB will review a proposal for updates to IPSAS 33 at its December meeting where material will be rearranged by topic and supported by non-authoritative guidance.
Board Appointments and Chair Extension
Following a rigorous nominations and interview process involving the IFAC Nominating Committee and IPSASB leadership, overseen by the Public Interest Committee and approved by the IFAC Board, the IPSASB announced its new and reappointed Board members and Deputy Chair for 2024, as well as the extension of its Chair through 2025.
Meeting Videos
Recordings of the meetings are available on our YouTube channel.
At its June meeting, the IPSASB finalized its preliminary view regarding categorization on the Statement of Financial Performance, and considered presentation requirements regarding main operating activities, totals and subtotals, minimum line items, and expenses by nature or function. The Board will continue to refine and articulate the nuanced discussions in its Consultation Paper, and begin discussions on other presentation requirements at its next meeting.
The International Public Sector Accounting Standards Board (IPSASB), developer of IPSAS®, international accrual-based accounting standards for the public sector, announced its new and reappointed Board members and Deputy Chair for 2024, as well as the extension of its Chair through 2025.
The new IPSASB appointees have been selected following a rigorous nominations and interview process involving the IFAC Nominating Committee and IPSASB leadership, overseen by the Public Interest Committee and approved by the IFAC Board. The 2024 Board will continue to be a diverse, woman-majority group, with exceptional public sector accounting experience from around the world.
The new Board members are:
Angela Ryan, New Zealand
Yacouba Traoré, Burkina Faso
The following three current Board members have been reappointed:
Hervé-Adrien Metzger, France
Mari Kobayashi, Japan
Renée Pichard, Canada
In addition, Scott Showalter of the USA has been reappointed as IPSASB Deputy Chair for 2024.
“For the third year in 2024, the IPSASB will be a board comprising a majority of women,” said IPSASB Chair Ian Carruthers. “Diversity of Board membership is essential to ensure the delivery of high-quality standards that can strengthen public financial management globally. The appointment of a Board member from Francophone Africa will be critical to bringing this regional perspective directly into our work for the first time.”
The tenure of the IPSASB’s independent Chair, Ian Carruthers, has been extended for a final year through 2025.
This allows Mr. Carruthers to continue to lead the Board in its important work addressing accrual-based financial reporting issues in the public sector, at the same time as it advances into the new space for the Board in developing public sector sustainability standards. Under his leadership, the IPSASB will continue to advance its ambitious standard-setting agenda and stay on the front-foot in expanding its global impact.
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 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.
IPSASB Welcomes Two New Members and Extends Chair for a Final Year
The International Public Sector Accounting Standards Board® (IPSASB®) seeks nominations from individuals, or representatives from organizations, interested in serving as a member of the IPSASB Consultative Advisory Group (CAG).
The CAG is an integral part of the IPSASB’s formal process for consultation and a forum for the IPSASB to obtain the views of those interested in, or affected by, the development and maintenance of its high-quality International Public Sector Accounting Standards™ (IPSAS™) used by governments and public sector entities around the world. CAG members have an opportunity to get involved in shaping the development of IPSASB Standards.
CAG members serve an initial term of up to three years. The CAG formally meets twice a year in different locations across the globe and may be convened for additional discussions as requested by the IPSASB. Interested nominees should be committed to attending all meetings.
The IPSASB is particularly interested in nominees with skills and experience that include:
The ability to perceive strategic public sector issues important to financial reporting, sustainability reporting, and the use of financial statements;
A deep understanding of IPSASB Standards; such as those involved in their adoption and implementation; and/or
A strong knowledge of public financial management.
The IPSASB values diverse perspectives and encourages qualified candidates that add to the CAG’s overall professional, geographic, and gender diversity. In pursuit of a globally representative advisory group, the IPSASB particularly encourages women and those from Africa, Asia, Middle East, and Latin America to apply.
How to Apply:
Those interested in CAG membership should submit their nominations by email to CAGChair@IPSASB.org. The nomination should include the CV and contact details of the nominee, as well as a cover letter that notes the reasons for their interest and the value they would add to the CAG.
Nominations are due by September 29, 2023.
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.
In preparation for its 4th Research Forum, which will be co-hosted by Comparative International Governmental Accounting Research Network (CIGAR) at its June 2024 conference, the IPSASB is calling for scholarly contributions from the academic community. This is an opportunity for researchers to have a significant impact on accounting standards used by governments and public sector entities across the globe.
Coordinated through the Academic Advisory Group, which includes independent scholars from all parts of the world, as well as the IPSASB members who have an academic background, the IPSASB is offering a grant of USD $2,000 for selected scholarly papers submitted covering three research areas. Up to six grants are available in total [one of the Research Area 2 grants will be funded by the Association of Chartered Certified Accountants (ACCA)].
The research areas of interest are:
Research Area 1: Research on Practical IPSAS Implementation Challenges
Natural Resources
Presentation of Financial Statements
Research Area 2: Sustainability Reporting Focused Research
Climate Change and Public Sector Reporting Related to Sustainability
Accounting for Biodiversity in the Public Sector
Research Area 3: Research on Adoption and Implementation of Specific IPSAS
IPSAS 31, Intangible Assets
IPSAS 33, First-Time Adoption of Accrual Basis IPSAS
IPSAS 42, Social Benefits
The grant recipients, as well as other scholars, will present the first drafts of their full papers at the 2024 Research Forum (June 2024). As a first step, academics are invited to submit abstractsby September 1, 2023. (Extended until September 17, 2023) For more information, see the IPSASB’s Call for Papers.
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 decided to move forward with the development of a public sector specific Climate-Related Disclosures standard and approved a project brief related to this major initiative. The IPSASB hopes to be able to initiate other sustainability-related projects in the coming months, subject to funding and resource availability. See the recent announcement for further information on how to get involved and support this critical initiative.
The IPSASB approved the updated Chapter 3, Qualitative Characteristics, which clarifies the role of prudence in public sector financial reporting and updates the guidance on materiality to better serve the users of financial information. The updated chapter is expected to be published in July 2023, and the project to revise the IPSASB’s Conceptual Framework is now complete.
Natural Resources
The IPSASB revised the project timelines to develop by March 2024 two EDs:
One to propose IPSAS guidance on natural resources; and
Another to propose an aligned IPSAS with IFRS 6, Exploration for and Evaluation of Mineral Resources.
The IPSASB intends to refine the definition and guidance on the accounting for natural resources to reflect the recognition challenges raised by constituents in comment letters to the 2022 Consultation Paper, Natural Resources.
Other Lease–Type Arrangements
The IPSASB undertook a first review of the responses to ED 84, Concessionary Leases and Right-of-Use Assets In-kind. The IPSASB agreed that the ED 84 proposals received strong support on balance, and that it should undertake a detailed review of the issues highlighted in the comments letters starting at the September 2023 meeting.
Measurement–Application Phase
The IPSASB agreed current operational value is not an applicable measurement basis for IPSAS 16, Investment Property; IPSAS 26, Impairment of Cash-Generating Assets; IPSAS 27, Agriculture; IPSAS 36, Investments in Associates and Joint Ventures; IPSAS 37, Joint Arrangements; and IPSAS 41, Financial Instruments. The IPSASB also decided the scope of its IPSAS 21, Impairment of Non-Cash-Generating Assets update should focus on the definition and components of ‘recoverable service amount’.
Retirement Benefit Plans
The IPSASB decided to update the disclosure requirements in [draft] IPSAS 49, Retirement Benefit Plansand clarify the objective and scope, by highlighting the requirements are only applicable to retirement benefit plans in the public sector. The IPSASB agreed this clarification would address concerns identified by respondents related to definitions and consolidation. The IPSASB plans to approve this new IPSAS at its September 2023 meeting.
Presentation of Financial Statements
The IPSASB decided the scope of the project is to replace IPSAS 1, Presentation of Financial Statements with a new IPSAS. The IPSASB further decided that because of the complexity of the topic, the use of a consultation paper is warranted to obtain stakeholder input to support the development of an ED. The IPSASB will further consider a draft project brief at the September 2023 meeting.
Differential Reporting
The IPSASB reflected on the findings and constituent input from the research and scoping activities, and how to best address the public needs that gave rise to a call for an international differential reporting model. The IPSASB agreed the development of other forms of guidance, rather than a standard-setting solution, may be more feasible and better address the public interest needs. The IPSASB will consider the types of guidance and the future approach for this project at its September 2023 meeting.
First-Time Adoption of Accrual Basis IPSASs
The IPSASB discussed feedback from jurisdictions with experience applying IPSAS 33. The IPSASB agreed steps should be taken to better enable the use of IPSAS 33 in practice. The IPSASB decided to consider alternatives on how it could improve IPSAS 33 at its September 2023 meeting.
The IPSASB saw a record number of comments on the IPSASB SRS ED 1, Climate-related Disclosures. Recognizing the complexity of having different reporting perspectives in a single standard, the IPSASB decided that the project will be split into two phases:
This Questions and Answers (Q&A) publication is issued by the staff of the International Public Sector Accounting Standards Board (IPSASB) to provide insight on the financial reporting for certain contingencies and financial guarantees. This publication highlights the relevant IPSAS guidance already available to aid constituents in accounting for these transactions.
