News from the IPSASB

  • February 7, 2022
  • Posted by: Julianne Vissie
  • Category: Blog
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The IPSASB met virtually during December 2021 to discuss the following projects:

  • Leases
  • Improvements to IPSAS, 2021
  • Conceptual Framework – Limited Scope Update – Next Stage
  • Retirement Benefit Plans
  • Natural Resources
  • Revenue and Transfer Expenses
  • Mid-period Work Programme Consultation
  • Measurement Suite of Exposure Drafts

 

The following was approved at the meeting:

Document Effective date Comment
IPSAS 43 on Leases 1 January 2025

Publication is expected in January 2022.

 The new IPSAS is substantially aligned with IFRS 16 on Leases and introduces the right-of-use model for lessees. The IPSAS will continue with the second phase of the project to consider public sector specific leasing issues.
Improvements to IPSAS, 2021 ·        Interest Rate Benchmark Reform related amendments: 1 January 2022

·        Other amendments: 1 January 2023

Publication is expected in January 2022.

 Look out for an upcoming article on the amendments approved as Improvements to IPSAS, 2021.
ED 81 on Conceptual Framework Update: Chapter 3, Qualitative Characteristics and Chapter 5, Elements N/A

Publication is expected early in 2022 for comment with a 4-month consultation period.

 The ED includes proposals on:

  •  Materiality – the revised definition of the IASB has been included in IPSAS, and obscuring information was added to omitting and misstating information as factors that can influence  financial reporting objectives.
  • Prudence –discussed as a reinforcement of neutrality in the qualitative characteristic of faithful representation.
  • The definitions for an asset and a liability have been aligned with the IASB. A more rights-based approach has been adopted to  describe a resource in the context of an asset.
  •  Unit of account – a new section is being proposed and will include guidance on executory contracts.


Retirement Benefit Plans

The IPSASB preliminarily approved Exposure Draft (ED) 82 on Retirement Benefit Plans. The ED provides accounting and reporting requirements for public sector retirement benefit plans and is adapted from IAS 26 on Accounting and Reporting by Retirement Benefit Plans. The IPSASB is expected to finalise the last outstanding matters on the ED at its February 2022 meeting.

The IPSASB made progress on the following projects:

Project Feedback Next steps
Natural Resources The IPSASB considered updates to the draft Consultation Paper and performed a detailed review. The Consultation Paper is expected to be approved at the March 2022 meeting.
Revenue and Transfer Expenses The IPSASB discussed accounting models for categories of transfer expenses. They confirmed an entity’s obligation in revenue transactions with binding arrangements is a narrower concept than in the Conceptual Framework and clarified how to distinguish individual obligations in a binding arrangement. Specified activities and eligible expenditures are examples of  how an entity may fulfil obligations. The IPSASB will consider its response to constituent comments on ED 70 to ED 72.

It was signalled that re-exposure of these Exposure Drafts is becoming likely.
Mid-period Work Programme Consultation The IPSASB performed a preliminary analysis of responses to the Work Programme Consultation, including vital feedback that sustainability reporting should be prioritised.

They tentatively agreed to prioritise the two major and four minor projects proposed in the consultation.

 The project prioritisation and a feedback statement will be considered for approval in March 2022.
Measurement Suite of EDs The IPSASB considered a preliminary analysis of responses to ED 76 to ED 79. The proposals   were supported, but diverse views were expressed on the public sector specific measurement basis – current operational value. The IPSASB will dedicate resources in 2022 to work on current operational value.

Next meeting

The IPSASB will hold its next quarterly check-in meeting on 24 February 2022. This will be followed by the first full meeting for 2022 to be held virtually in March. For more information, or to register as an observer visit the IPSASB website.

Disclaimer

The article has been prepared by the Secretariat of the ASB for information purposes only. It has not been reviewed, approved, or otherwise acted on by the Board.

 

 



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