Highlights of the December 2019 IPSASB meeting
The IPSASB met in December 2019. The key decisions are outlined below.
New Exposure Drafts
The IPSASB approved three Exposure Drafts for comment: - ED 70 – Revenue with Performance Obligations
- ED 71 – Revenue without Performance Obligations
- ED 72 – Transfer Expenses
The documents will be published at the end of February 2020, with a comment period of six months.
The documents will be issued locally as Exposure Drafts for comment, and the Secretariat will be holdings discussions with affected stakeholders on the proposals. The outcome of these discussions will be used to formulate a comment letter to the IPSASB.
New pronouncements
The Improvements to IPSASs were approved. These amendments will be considered locally in 2026 during the next ASB Improvements Project.
Being deliberated - Leases – The IPSASB is still deliberating whether lessor accounting should be aligned with IFRS 16 on Leases or whether a right of use model (as outlined in ED 64 on Leases) should be applied by both lessors and lessees. The Task Force has been asked to refine the criteria to be used by the Board to decide which option should be adopted. The approach for lessors will be discussed again in March 2020.
- Measurement – The IPSASB discussed a high-level analysis of the responses received on its Consultation Paper on Measurement. A number of responses were received, raising a number of complex issues for the IPSASB to consider. Two of the most controversial areas are (a) the use of replacement cost as both a measure of fair value, as well as a measurement basis in its own right, and (b) the treatment of borrowing costs. The IPSASB will discuss the detailed comments at future meetings and how they can be addressed.
- Heritage assets – The IPSASB discussed possible amendments to IPSAS 17 on Property, Plant and Equipment to provide accounting guidance on heritage assets. Given the urgency to deal with other items on the agenda, the IPSASB will discuss these amendments again in March 2020.
- Infrastructure assets – The IPSASB proposes providing guidance on infrastructure assets by adding Application Guidance to IPSAS 17. A first draft of the guidance dealing with selected issues was discussed at the meeting, and feedback provided to staff. These proposed changes along with guidance in other areas will be discussed at the next meeting.
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