• Consultation Paper, Measurement

    This Consultation Paper is the IPSASB’s first step in establishing a comprehensive measurement framework for the public sector. The Consultation Paper focuses on better aligning the IPSAS measurement requirements with those established in the Conceptual Framework. This project sets out to:

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  • IPSASB Seeks Comments on Measurement Proposals

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    The International Public Sector Accounting Standards Board® (IPSASB®) has released a Consultation Paper (CP), Measurement, which addresses how measurement bases are determined in the public sector. The CP includes within it an illustrative Exposure Draft (ED), Measurement, which shows what the IPSASB currently envisages a final pronouncement will comprise. This is the first time that the IPSASB has used such an approach, which is intended to provide a firm basis for constituent comments.

    The CP lays out proposed guidance for measurement bases for the assets and liabilities most commonly used by public sector entities when applying IPSAS. It proposes the development of a single standard which will provide definitions and guidance on the main measurement bases, while other IPSAS will continue to provide guidance on which particular measurement basis is to be used.

    The CP and ED respond to a number of drivers including:

    • The need to consider existing measurement requirements in the light of the measurement guidance in IPSASB’s Conceptual Framework;
    • That it is necessary to standardize usage of the term ‘fair value’ within IPSASB’s literature following the issue of private sector guidance in IFRS 13; and
    • The need to provide guidance on difficult issues, such as borrowing costs and transactions costs.

    “Measurement must fairly reflect the cost of services, operational capacity and financial capacity in order to provide the high-quality information required for accountability and decision making in the public sector,” said IPSASB Chair Ian Carruthers. “This project will consolidate the guidance on the main measurement bases used in IPSAS into a single comprehensive standard, so increasing consistency and coherence for users.”

    The final pronouncement will underpin the IPSASB’s approach to measurement for many years. It is therefore essential that the IPSASB hears the views of respondents on the preliminary views and the other matters raised for comment in this Consultation Paper.

    How to Comment
    To access the Consultation Paper and its summary At-a-Glance document, or to submit a comment, visit the IPSASB website, www.ipsasb.org. Comments on the Consultation Paper are requested by September 30, 2019. 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.

     

    Consultation Paper Calls for Public Comment by September 30, 2019

  • IPSASB eNews: March 2019

    English

    The IPSASB held its first meeting of 2019 from March 12-15, 2019 in Washington, D.C., USA.

    Measurement

    The IPSASB unanimously approved the Consultation Paper (CP), Measurement, which will be published in April 2019, and will be open for comment until September 30, 2019. The Consultation Paper includes an illustrative Exposure Draft (ED) which indicates the IPSASB’s current thinking on the scope and format of an IPSAS on Measurement. A full ED will be issued in due course.

    Please register on the IPSASB website to ensure that you receive updates when this document and others are published: https://www.ifac.org/user/register

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    Heritage

    The IPSASB reopened discussions on the Heritage project. The IPSASB considered the background to the project and the issues that had been raised by respondents to the 2017 Consultation Paper, Financial Reporting for Heritage. The project will focus on recognition, with measurement issues being considered in the complementary project on Measurement.

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    Revenue from Binding Arrangements with Purchasers

    The IPSASB adopted the working title Revenue from Performance Obligations, for the ED and tentatively approved it. The IPSASB clarified that the scope applies to binding arrangements with purchasers that include performance obligations. The IPSASB instructed staff to consider the approach to transactions where the collectability of consideration is not probable. Staff will continue work on non-authoritative illustrative examples to ensure that these are suitable for the public sector.

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    Revenue - Enforceability and Performance Obligations

    In the context of public sector-specific transactions, the IPSASB confirmed that legislation and reductions in future funding are the two enforcement mechanisms to be included in the ED, Revenue from Performance Obligations. The IPSASB also noted that enforceability in a binding arrangement is a two-way relationship. In a revenue context, enforcement mechanisms relate to the purchaser’s ability to enforce the fulfilment of performance obligations by the resource recipient. The IPSASB instructed staff to consider alternative terms for ‘distinct’ in articulating the concepts of ‘distinct goods and services’ and ‘distinct promises’ for performance obligations. 

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    Revenue - Update of IPSAS 23, Revenue from Non-Exchange Transactions (Taxes and Transfers)

    The IPSASB considered the scope of the draft ED, Grants, Contributions and Other Transfers. The IPSASB tentatively agreed to adopt a narrower scope for the project, excluding commercial transactions. Staff were instructed to develop definitions for the transactions within this revised scope, and to consider the accounting treatment of contracts that are described as grants. Recognition, measurement and presentation requirements will be developed in parallel with the two Revenue EDs highlighted above.

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    Leases

    The IPSASB further considered its approach in light of the response to ED 64, Leases. The IPSASB directed the Leases Task Force to firstly assess the rationale for departing from the lessor accounting requirements in IFRS 16, Leases. The IPSASB will not consider the approach to concessionary leases until decisions have been made on lessor accounting. The Task Force will make recommendations to the IPSASB for consideration at the June 2019 meeting.

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    IPSAS-IFRS Alignment Dashboard

    The IPSASB reviewed the IPSAS-IFRS Alignment Dashboard, which reflects the extent of alignment with current International Financial Reporting Standards and identifies pronouncements that are public sector specific. The IPSASB directed some minor presentational changes.

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    Strategy and Work Plan 2019-2023. Delivering Global Standards. Inspiring Implementation.

    The IPSASB published its Strategy and Work Plan 2019-2023 in late February. At a time of increasing momentum for IPSAS adoption and implementation globally, the Strategy and Work Plan 2019-2023 sets out the Board's work intentions and priorities for the next five years. 

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    Meeting Podcast
    Next Meeting

    The next meeting of the IPSASB will be in Toronto, Canada from June 18-21, 2019. The IPSASB Consultative Advisory Group will meet on June 17, 2019 Toronto, Canada. For more information, or to register as an observer, visit the IPSASB website (www.ipsasb.org).

  • IPSASB March 2019 Meeting Podcast

    English

    Highlights from the IPSASB March 2019 meeting in Washington DC.

    • 00:11      Welcome and introduction: John Stanford, Technical Director
    • 01:09      Chair’s overview of outreach event co-hosted with the World Bank and the International Monetary Fund, Leveraging Financial Reporting for Fiscal Reporting and Management of Public Wealth: Ian Carruthers, Chair
    • 03:30      Chair’s meeting overview: Ian Carruthers, Chair
    • 05:47      Measurement: Dave Warren, Principal
    • 06:49      Revenue from Binding Arrangements with Purchasers: Amon Dhliwayo, Manager
    • 07:38      Revenue – Enforceability and Performance Obligations: Joanna Spencer, Manager
    • 08:40      Chair’s concluding comments: Ian Carruthers, Chair
    • 12:04      Closing remarks: John Stanford, Technical Director
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  • IPSASB to Sharpen Focus on Public Financial Management and Benefits of IPSAS Adoption

    English

    At a time of increasing momentum for IPSAS adoption and implementation globally, the International Public Sector Accounting Standards Board (IPSASB) today published its Strategy and Work Plan 2019-2023: Delivering Global Standards. Inspiring Implementation, which will shape the Board’s work and priorities for the next five years.

    To ensure it delivers in the public interest, the IPSASB’s strategic objective is:

    Strengthening Public Financial Management (PFM) globally through increasing adoption of accrual-based IPSAS. Delivered through two main areas of activity, both of which have a public interest focus:

    • Developing and maintaining IPSAS and other high-quality financial reporting guidance for the public sector; and
    • Raising awareness of IPSAS and the benefits of accrual adoption.

    “Governments depend on the trust of their citizens and their national and international stakeholders in order to deliver their goals efficiently and effectively. The regular publication of high-quality accrual-based financial reports helps strengthen public financial management, and is a fundamental ingredient in maintaining that trust,” said IPSASB Chair Ian Carruthers.

    “IPSAS-based information provides a comprehensive and comparable picture of a public sector entity’s financial performance and position. IPSAS adoption and implementation therefore represent fundamental steps for governments to take, not only to increase transparency and accountability to their citizens and stakeholders, but also to inform effective decision making, so contributing to fiscal stability and sustainability. Our new Strategy and Work Plan is intended both to support and to help inspire governments and other public sector organizations making that journey,” Mr. Carruthers added.

    The IPSASB will implement its Strategy and Work Plan 2019-2023 through two streams:

    • Delivering global standards by:
      • Setting standards on public sector specific issues;
      • Maintaining IFRS alignment;
      • Developing guidance to meet users’ broader financial reporting needs;
    • Inspiring their implementation by:
      • Promoting IPSAS adoption and implementation; and
      • Advocating the benefits of accrual in strengthening PFM.

    The Board’s top standard-setting priorities through 2023 include completing its current public sector specific projects, notably revenue, leases, public sector measurement, heritage and infrastructure, as well as making progress with its new public sector specific projects, including natural resources.

    The International Public Sector Financial Accountability Index projects that in five years, 65% of countries will report on the accrual basis. The IPSASB seeks to capitalize on this growth by working with key stakeholders to promote IPSAS adoption and implementation and the benefits of accrual information in strengthening PFM.   

    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.

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