Accounting Standards Board Newsletter #4

The IFRS Foundation supports the implementation of the IFRS Standards issued by the IASB through the publication of educational material.

Although the educational material is focused on the application of IFRS Standards, the Standards of GRAP are based on International Public Sector Accounting Standards (IPSAS), which are in turn based on IFRS Standards. As a result, the educational material may be helpful to preparers of financial statements based on Standards of GRAP in considering certain issues.

The IFRS Foundation recently published educational material on going concern and the effect of climate related matters on an entity's financial statements.

The ASB will commence with a project in the next few months to consider the application of going concern in the public sector. Due to the dire economic situation in the country, questions are being raised about whether public sector entities are going concerns, and what the potential differences could be between entities in financial distress versus those that are validly no longer going concerns. Developments on this project will be communicated in the newsletter and social media.

Entities may need to consider the potential risks and obligations of climate related issues on an entity’s financial statements either in terms of the potential recognition of obligations, and/or disclosures in the accounting policies or notes to the financial statements.