Consequential Amendments Arising from Chapters 1-4 of Conceptual Framework

The first four chapters of the Conceptual Framework cover role and authority; objectives and users; the qualitative characteristics (QCs); and the reporting entity, and were published in January 2013 prior to inclusion in the complete Framework that was published in October 2014.

Appendix A of IPSAS 1, Presentation of Financial Instruments, describes the QCs and pervasive constraints on information included in general purpose financial reports (constraints) that underpin the current suite of IPSASs. Appendix A is drawn from the International Accounting Standards Board’s (IASB) 1989 Conceptual Framework. Following approval of the Phase 1 Conceptual Framework chapters at the December 2012 meeting, the IPSASB considered whether Appendix A should be withdrawn on issue of the Phase 1 chapters and cross references to Appendix A elsewhere in the IPSASB literature revised or deleted,

Members did not support the withdrawal of Appendix A at that time. In order  to ensure that users were aware of how the two sets of QCs and pervasive constraints relate to existing pronouncements and IPSASs and RPGs under development the 2013 and 2014 Handbooks included a statement above Appendix A on the operation of the QCs and pervasive constraints in IPSAS 1.

Oher potential changes to the current suite of IPSASs arising from Chapters 1-4 relate to the hierarchy of accounting sources where there is no IPSAS dealing with a transaction, other event or condition, the objectives of financial reporting, and the terminology relating to group/economic entities.