IPSASB continues to debate “measurement of public sector assets and liabilities”

The IPSASB met in March 2022 and discussed how to progress work on developing guidance for measuring assets and liabilities.

As a short recap, the IPSASB published two documents for comment last year – proposed amendments to the Conceptual Framework to include fair value and reconsider/redefine other measurement bases. A proposed IPSAS outlining measurement guidance for the measurement bases described in the Conceptual Framework and the Standards.

The IPSASB is debating how to progress these two documents based on comments received from stakeholders.  Stakeholders supported many of the proposals in both documents.  The most significant concerns raised relate to the IPSASB’s public sector specific measurement basis, called current operational valueThe IPSASB will debate how to deal with this issue at future meetings.

While there are still significant matters that need to be resolved on the public sector measurement basis, preliminary conclusions reached by the IPSASB in March include:

Agreement to include fair value, as defined in IFRS 13 on Fair Value Measurement in the Conceptual Framework.  Guidance from IFRS 13 will be included in the proposed IPSAS on Measurement.’Market ‘value’ will be removed from the Conceptual Framework..

The term measurement ‘hierarchy’ was used in the Conceptual Framework to describe the measurement approaches, models and bases.  Stakeholders noted that a hierarchy implies a ranking system.  As this was not the intention, the term will be changed to a ‘subsequent measurement framework’.

 Staff will do more work to analyse whether net selling price, cost of release and assumption price should be deleted from the Conceptual Framework.

For more information on the ‘ ‘IPSASB’s project on Measurement, follow this link.