While there has recently been significant progress towards the development of a global baseline for sustainability reporting in the private sector, public sector sustainability reporting has yet to move forward in the same way. Governments are significant in expenditure and employment terms in all jurisdictions, as well as in the global bond market. How and where they spend the money they raise through the taxes everyone pays will therefore be critical in successfully delivering the United Nation’s Sustainable Development Goals (SDGs), and making meaningful progress on climate change. As a result of expected differences in focus and coverage compared with the private sector, global public sector sustainability reporting guidance will be required to bring the necessary transparency and comparability to government activities in this important area.

In response to stakeholder demand, including from the World Bank, today the International Public Sector Accounting Standards Board® (IPSASB®) launched a global consultation on developing a sustainability reporting framework for the public sector. To kick-off the discussion, the IPSASB has issued its Consultation Paper, Advancing Public Sector Sustainability Reporting. Comments are requested by September 9, 2022.

“The IPSASB has the experience, processes, and relationships to develop global public sector sustainability reporting guidance efficiently and effectively,” said Ian Carruthers, IPSASB Chair. “We are ready to take on this responsibility, and the consultation paper we released today outlines how we would tackle this critical work through collaboration with others, and building on our 25 years of standard setting experience.”

The aim of the public consultation process is to evaluate the demand from stakeholders for global public sector specific sustainability reporting guidance, as well as the degree of support for IPSASB developing such guidance, the priority areas for coverage, and how this might be approached.

Within this consultation paper, the IPSASB proposes to:

• Serve as the standard setter for global public sector specific sustainability reporting guidance, drawing upon its experience, processes and global relationships.
• Develop initial guidance focused on the topics of general disclosure requirements for sustainability-related information and climate-related disclosures by drawing on the initial work of the newly formed International Sustainability Standards Board in these areas.
• Approach guidance development at an accelerated pace, with a potential for releasing initial guidance by the end of 2023.

To this end, strong stakeholder support and commitment are essential. The consultation paper lays out what the IPSASB believes is necessary to get started now, and the resources, including additional funding, required, to deliver public sector specific sustainability reporting guidance, in a timely manner.

How to Comment

Visit the IPSASB’s website to access the Consultation Paper. Comments are requested by September 9, 2022. The IPSASB encourages IFAC members, associates, and Network Partners 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.

The International Public Sector Accounting Standards Board® (IPSASB®) has released its Mid-Period Work Program Consultation Summary. The Consultation Summary confirms the projects added to the IPSASB’s work program, and explains the process followed to obtain stakeholder feedback on the Board’s original proposals, as well as the reasons for the IPSASB’s decisions.

“In determining which projects to add to its 2022 work program, the IPSASB has had to balance delivery of its current financial reporting work program with the strong support for the projects proposed in the 2021 Mid-Period Work Program Consultation, and the demands from stakeholders for sustainability reporting guidance,” said IPSASB Chair Ian Carruthers. “The Board’s decision to add four projects to its 2022 work program reflects the balancing act needed to address the diverse needs of the IPSASB’s many stakeholders.”

The four projects added to the IPSASB’s work program where work will be undertaken during 2022 are:

(a)        Presentation of Financial Statements;

(b)        Differential Reporting;

(c)        Reporting Sustainability Program Information (Limited-scope project); and

(d)        Global Consultation on Advancing Public Sector Sustainability Reporting.

The IPSASB originally proposed to add another four limited-scope projects. These all received strong stakeholder support, so the projects below have been added as pre-commitments for the IPSASB’s future Work Program, with work to start as resources become available from 2023 onwards:

(a)        IPSAS 21, Impairment of Non-Cash Generating Assets;

(b)        IPSAS 31, Intangible Assets;

(c)        IPSAS 33, First Time Adoption of Accrual Basis IPSASs; and

(d)        Practice Statement: Making Materiality Judgements.

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.

The International Public Sector Accounting Standards Board^® (IPSASB^®) has released a Consultation Paper (CP), Natural Resources, which considers the issues relating to the recognition, measurement, and presentation of natural resources by public sector entities.

Natural resources are generally understood to be resources such as sunlight, air, water and land that exist without the actions of humankind. They account for a significant proportion of the economic resources in many jurisdictions. However, governments often lack sufficient information on the monetary value of natural resources, and as a result, grant rights to these resources without regard to financial and environmental sustainability, or intergenerational fairness.

Currently, there is no explicit International Public Sector Accounting Standard (IPSAS™) guidance on accounting for natural resources in their original state. The IPSASB is now working to address this gap. The first phase of its work focuses on the financial reporting of tangible, naturally occurring resources, including subsoil resources, water, and living resources, which are in their natural state. This consultation paper is the first project output, and considers whether natural resources can be recognized as assets in general purpose financial statements or should be disclosed in broader financial reports.

“The issue of accounting for natural resources is important for the public sector in most jurisdictions. The recognition and measurement of natural resources impacts not only on financial reporting, but also potentially for many governments on policy decisions and public financial management.” said IPSASB Chair Ian Carruthers. “This consultation paper is the IPSASB’s first step in developing guidance for this important area.”

The IPSASB welcomes comments on all the matters discussed in this Consultation Paper by October 17, 2022. Feedback on the CP will guide the IPSASB in determining the approach to developing an Exposure Draft on the topic which will in turn shape a final IPSAS related to Natural Resources.

How to Comment

To access the Consultation Paper, Natural Resources, or to submit a comment, visit the IPSASB website. The IPSASB encourages IFAC members, associates, and Network Partners 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.

The document below provides a detailed explanation of how Figure 2 in the Consultation Paper, Natural Resources, was developed.

The Mid Period Work Program Consultation Summary (Consultation Summary) reflects the IPSASB’s deliberations and decisions related to the responses received to the 2021 Mid Period Work Program Consultation. The Consultation Summary highlights the process followed in deciding what projects to add, and the IPSASB’s basis for those decisions.

The projects added to the 2022 IPSASB Work Program are:

-       Presentation of Financial Statements;

The International Public Sector Accounting Standards Board^® (IPSASB^®) has issued International Public Sector Accounting Standard^® (IPSAS^®) 44, Non-current Assets Held for Sale and Discontinued Operations.

IPSAS 44 is based on International Financial Reporting Standard (IFRS^®) 5, Non-current Assets Held for Sale and Discontinued Operations, developed by the International Accounting Standards Board (IASB^®).

The International Public Sector Accounting Standards Board^® has issued International Public Sector Accounting Standard^® (IPSAS^®) 44, Non-current Assets Held for Sale and Discontinued Operations.

IPSAS 44 is based on International Financial Reporting Standard (IFRS^®) 5, Non-current Assets Held for Sale and Discontinued Operations. The new IPSAS specifies the accounting for assets held for sale and the presentation and disclosure of discontinued operations. IPSAS 44 includes additional public sector requirements, in particular, the disclosure of the fair value of assets held for sale that are measured at their carrying amounts, when the carrying amount is materially lower than their fair value.

“This standard fills a gap in the IPSAS suite by providing guidance on how to account for public sector assets that are held for sale on commercial terms,” said IPSASB Chair Ian Carruthers. “Adding guidance on this topic is important from a public interest perspective, as it ensures transparency and accountability when decisions to sell public sector assets have been taken.”

IPSAS 44 has an effective date of January 1, 2025. Earlier application is permitted.

How to Access

To access IPSAS 44, Non-current Assets Held for Sale and Discontinued Operations and its summary At-a-Glance document visit the IPSASB website. The IPSASB encourages IFAC members, associates, and Network Partners to promote the availability of IPSAS 44, Non-current Assets Held for Sale and Discontinued Operations 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.

The International Public Sector Accounting Standards Board® (IPSASB®) has today released for comment Exposure Draft (ED) 82, Retirement Benefit Plans. This ED is intended to increase the transparency and accountability of public sector entities regarding multi-employer retirement benefit obligations. Stakeholder comments on ED 82 are sought by August 1, 2022.

“Retirement benefit obligations can represent a significant but often hidden liability for the public sector,” said IPSASB Chair Ian Carruthers. “The draft Standard requires public sector employee 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.”

In developing principles for the public sector, the private sector requirements in IAS 26 were used as the starting point. The IPSASB adapted IAS 26, based on experience from around the world, to ensure the unique characteristics of the public sector are reflected in the ED. In particular, it has reviewed the existing policy choices available in IAS 26 and proposes to remove those that are not appropriate for the public sector or are inconsistent with existing IPSAS.

Comments will be reviewed and discussed by the IPSASB alongside other feedback to help shape the final International Public Sector Accounting Standard (IPSAS™) related to Retirement Benefit Plans.

How to Comment
To access the Exposure Draft, its summary At-a-Glance document, and the Request for Information or to submit a comment, visit the IPSASB website. Comments are requested by August 1, 2022. The IPSASB encourages IFAC members, associates, and Network Partners 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.