Update on the IPSASB’s natural resources project

  • April 22, 2024
  • Posted by: Julianne Vissie
  • Category: Blog
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The IPSASB continued its deliberations on an IPSAS on natural resources. Natural resources could be subsoil resources, living resources and water before their extraction, cultivation or harvest. Some matters agreed at the last IPSASB meeting are:

Scoping

 Natural resources within the scope of an existing IPSAS are accounted for using that IPSAS. For example, a natural resource used in the production or supply of goods or services, such as horses used for policing, are accounted for using IPSAS 45 on Property, Plant and Equipment.

Natural resources held for conservation

Guidance on natural resources held for conservation will be included in the proposed IPSAS. Conservation includes actions to manage and protect the resources from degradation.
Measurement principles

The subsequent measurement and derecognition principles for natural resources will be similar to that of property, plant and equipment in IPSAS 45.

There is a rebuttable assumption that natural resources have indefinite useful lives – judgement is applied to assess if this assumption applies to all natural resources controlled by the entity.

The proposed IPSAS is likely to be issued as an Exposure Draft at the September 2024 IPSASB meeting. Follow further developments on this project by subscribing to the ASB’s newsletter, or follow the IPSASB’s Natural Resources project on Natural Resources | IPSASB.

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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