Highlights from the IPSASB CAG December 2019 meeting in Abu Dhabi, United Arab Emirates:
00:11 Welcome and introduction: John Stanford, IPSASB Technical Director 01:05 Chair’s summary of the IPSASB CAG meeting: Thomas Müller-Marqués Berger, IPSASB CAG Chair 14:12 Closing remarks: John Stanford, IPSASB Technical Director
00:10 Welcome and introduction: John Stanford, Technical Director 01:02 Chair’s meeting overview: Ian Carruthers, IPSASB Chair 03:02 Revenue with Performance Obligations: Edwin Ng, Principal 04:04 Revenue without Performance Obligations: Joanna Spencer, Manager 04:56 Transfer Expenses: Paul Mason, Senior Advisor 06:06 Leases: João Carlos Fonseca, Principal 06:52 Measurement: Dave Warren, Principal 09:46 Chair’s concluding comments: Ian Carruthers, IPSASB Chair 12:54 Closing remarks: John Stanford, Technical Director
The Public Interest Committee, the body that oversees the standard setting activities of the International Public Sector Accounting Standards Board (IPSASB), today launches a public Survey on IPSASB governance arrangements which were implemented in accordance with the 2015 Recommendations of the IPSASB Governance Review Group. All interested stakeholders are encouraged to participate in this global consultation.
Established in 2015, the Public Interest Committee reviews the standard-setting activities of the IPSASB to ensure appropriate due process and that the Board’s activities reflect the public interest. Since its formation, the Committee has actively provided advice and recommendations concerning the development of the IPSASB strategy and work program, the appointment process for members of the IPSASB, and IPSASB standard-setting due process.
Stakeholder feedback through the survey will be an important source of input for the Public Interest Committee in carrying out the review of the current oversight arrangements of the IPSASB.
The 2nd IPSASB Research Forum, hosted by the Comparative International Governmental Accounting Research (CIGAR) network,in conjunction with the 2020 CIGAR Workshop, will be held on 17 June 2020 in Oslo-Drammen, Norway. Ahead of the event, the IPSASB is pleased to offer research grants of USD 1,500 for research under each of the following topics:
The Presentation of Financial Statements in the Public Sector;
Differential Reporting (Financial Reporting for Small and Medium Sized Public Sector Entities);
Discount Rates in the Public Sector: Rationale for their Use and Determination; and
Disclosures of Tax Expenditures.
The first IPSASB Research Forum was on 17 September 2019 in Naples, Italy. With more than 80 participants from academia and standard-setting bodies, the Research Forum discussed linkages between academia and the standard-setting process and current and committed projects on the IPSASB’s work program. The 2nd Research Forum aims to take forward the dialogue established between academia and the IPSASB.
The grants will be awarded by an academic advisory committee comprising representatives from IPSASB and the academic community, based on abstracts. Please email your abstract to VanessaMello@ifac.org by 31 December 2019 for consideration.
The International Public Sector Accounting Standards Board (IPSASB) held its first Research Forum on 17 September 2019 in Naples, Italy. More than 80 participants, from academia and standard-setting bodies discussed linkages between academia and the standard-setting process and current and committed projects on the IPSASB’s work program. One of the key points identified was the scope for academia to provide research input to potential IPSASB projects.
The IPSASB held its third meeting of 2019 from September 24-27, 2019 in Lisbon, Portugal. The Ministry of Finance of Portugal generously hosted the meeting.
Collective and Individual Services & Emergency Relief
The IPSASB reviewed responses to ED 67, Collective and Individual Services and Emergency Relief. The IPSASB noted the significant issues raised on emergency relief and decided to remove this guidance. The IPSASB agreed some minor changes to the wording of the remainder of the ED and approved Collective and Individual Services (Amendments to IPSAS 19). The IPSASB agreed an effective date of January 1, 2022, to align with the effective date of IPSAS 42, Social Benefits.
The IPSASB approved the comprehensive list and categorization of issues identified by stakeholders for accounting for infrastructure assets. The IPSASB instructed staff to refine the flowchart that will be used to analyze these issues, noting that it is a positive development with broader potential. The revised flowchart and draft additional guidance prepared by staff to address the selected infrastructure assets issues will be considered by the IPSASB at the December 2019 Board meeting. Access Presentation >>
Revenue with Performance Obligations
The IPSASB approved the staff proposals to add disclosure requirements dealing with materiality and aggregation, to ED 70, Revenue with Performance Obligations, as well as disclosure requirements for transactions arising from the statutorily required provision of services where collection of revenue is not probable. The staff also provided the IPSASB with an update on the Revenue Task Force’s activities, which resulted in revisions to the illustrative examples and other minor amendments to ED 70. These changes will be presented to the IPSASB in December 2019. Access Presentation >>
Revenue without Performance Obligations
The IPSASB decided that binding arrangements without performance obligations (as defined in draft ED 70) will give rise to a present obligation of the recipient if they contain requirements for enforceable activities or eligible expenditure. Revenue will be recognized either as enforceable activities are completed or eligible expenditure is incurred. The IPSASB also agreed that revenue from capital transfers should be recognized as for any other transfer - that is in accordance with the details of the binding arrangement. The IPSASB also tentatively agreed that transfers that are subject to appropriations of the transfer provider should not be recognized by the transfer recipient until the recipient has control of resources. Accounting will be subject to jurisdictional and entity- specific factors. Access Presentation >>
Transfer Expenses
The IPSASB considered the authoritative sections of ED 72, Transfer Expenses. Subject to minor amendments, the IPSASB agreed the definitions. Accounting for transfer expenses with performance obligations will mirror the treatment in ED 70, Revenue with Performance Obligations. Entities will recognize transfer expenses without performance obligations at the earlier of the point at which they have a present obligation to transfer resources, or the point at which they lose control of the resources they transfer. Access Presentation >>
Leases
he Leases Task Force Chair reported back to the IPSASB on the Task Force’s discussions in the third quarter of 2019. The IPSASB tentatively formed a view that departure from the lessor accounting requirements of IFRS 16, Leases, would be justified on conceptual grounds. The IPSASB began its consideration of the practical and cost-benefit implications of departing from IFRS 16 by receiving presentations on the implementation of IFRS 16 in the public and private sectors and the statistical accounting perspective. The IPSASB will continue this phase of its deliberations in December. Access Presentation >>
Heritage
The IPSASB considered four issues with a potential impact on accounting - different usages of heritage assets, heritage assets held in trust and the implications of stewardship, depreciation/amortization and impairment, and the treatment of subsequent expenditure on heritage. The IPSASB instructed staff to provide further analysis of these issues at the December meeting. The IPSASB also approved a plan for development of guidance on heritage-related financial reporting issues. Access Presentation >>
Meeting Podcast
A podcast highlighting key points of the September 2019 meeting is now available here.
Next Meeting
The next meeting of the IPSASB will be in Abu Dhabi, United Arab Emirates from December 10-13, 2019. For more information, or to register as an observer, visit the IPSASB website.
00:10 Welcome and introduction; John Stanford, Technical Director 01:20 Chair’s meeting overview; Ian Carruthers, Chair 03:10 Collective and Individual Services; Paul Mason, Consultant 04:21 Revenue with Performance Obligations; Edwin Ng, Principal 05:25 Revenue without Performance Obligations; Joanna Spencer, Manager 07:16 Transfer Expenses; Paul Mason, Consultant 08:39 Leases; João Carlos Fonseca, Principal 09:44 Chair’s concluding comments; Ian Carruthers, Chair 12:44 Closing remarks; John Stanford, Technical Director
The IPSASB adopted an open and inclusive process throughout the development of the 2019-2023 Strategy and Work Plan. This included discussions and dialogue with different stakeholder groups including: (a) National standard setters (through the Public Sector Standard Setters Forum); (b) Jurisdictions using IPSAS or in the process of adopting and implementing IPSAS; and (c) The IPSASB Consultative Advisory Group (CAG) and the Public Interest Committee (PIC).
