The IPSASB met in December 2021. The key highlights are as follows:
New IPSAS issued
The following IPSAS and amendments to IPSAS were issued: - IPSAS 43 on Leases was approved and will replace IPSAS 13 on Leases. The effective date is 1 January 2025. As IPSAS 43 aligns with IFRS 16 on Leases, the IPSASB will shift its focus to dealing with public sector specific leasing issues as part of the next phase of its project on leases.
- The Improvements to IPSAS, 2021 were approved. The amendments are effective from 1 January 2023, with the exception of the changes related to the Interest Rate Benchmark Reform which are applicable from 1 January 2022.
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| Exposure Draft approved for issue |
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ED 81 on Conceptual Framework Update: Chapter 3, Qualitative Characteristics and Chapter 5, Elements was approved by the IPSASB. It will be finalised in the 1st quarter of 2022 and issued for comment for a four-month period.
ED 81 proposes changes to the definitions of assets and liabilities and includes additional guidance on their interpretation. Notably, guidance is proposed on the “Unit of Account” which will help the application of recognition and measurement of IPSAS. |
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Retirement Benefit Plans
The IPSASB will approve an Exposure Draft on Retirement Benefit Plans at its February 2022 meeting. The purpose of the proposed IPSAS is to provide guidance on the reporting by retirement benefit plans. Although not a convergence project, the proposed IPSAS is based on IAS 26 on Accounting and Reporting by Retirement Benefit Plans.
Natural Resources
The IPSASB reviewed the draft Consultation Paper, and expects to finalise the Consultation Paper at its March 2022 meeting.
Revenue and Transfer Expenses
Debates on revenue recognition continue. The primary debate is identifying the circumstances under which an obligation exists in a binding arrangement and how this affects revenue recognition. The IPSASB agreed that requirements to incur eligible expenditure or undertake specified activities could give rise to obligations in a revenue transaction.
Measurement of Assets and Liabilities
The IPSASB reviewed the comments received on its proposed IPSAS on Measurement, changes to the Conceptual Framework and IPSAS 17 on Property, Plant and Equipment. While there was support for most of the proposals, there was limited support for the new public sector measurement basis proposed, i.e. “current operational value”. Debates on current operational value and other issues will continue.
Mid-period Work Plan Consultation
Based on comments received from stakeholders, the IPSASB tentatively agreed to add two major and four minor projects to its work plan for 2024 to 2026. These projects are as follows:
Major projects - Presentation of financial statements
- Differential reporting
Minor projects - Impairment of non-cash-generating assets
- Intangible assets
- Practice statement of materiality
- First-time adoption of IPSAS
Respondents highlighted the need for the IPSASB to consider sustainability reporting. |
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