The IPSASB held its fourth meeting of the year virtually on December 1-2;8-11; and 15, 2020.
1. ED 77, Measurement
The IPSASB voted to preliminary approve ED 77, Measurement. ED 77 provides detailed guidance on the implementation of commonly used measurement bases, including historical cost, current operational value, fair value and cost of fulfillment, and the circumstances under which these measurement bases are expected to be used. The IPSASB will finalize ED 77 at its February 2021 meeting.
2. ED 76, Conceptual Framework - Limited Scope Update
The IPSASB voted to preliminary approve ED 76, Conceptual Framework – Limited Scope Update. ED 76 updates Chapter 7 of the IPSASB’s Conceptual Framework to align with measurement in IPSAS, reflect experience in use of the Framework since publication in 2014, and post-2014 developments in the International Accounting Standards Board. The IPSASB will finalize ED 76 at its February 2021 meeting.
3. ED 78, Property, Plant, and Equipment
The IPSASB voted to preliminary approve ED 78, Property, Plant, and Equipment, which will replace the requirements in IPSAS 17, Property, Plant, and Equipment. ED 78 updates the accounting principles drawn from IPSAS 17 and proposes additional guidance related to the:
- Measurement project by bringing in guidance on public sector specific measurement concepts.
- Heritage project by adding accounting requirements for heritage assets.
- Infrastructure project by introducing clarifications related to the accounting for infrastructure assets.
4. ED 75, Leases
The IPSASB approved ED 75, Leases and the Request for Information, Concessionary Leases and Other Arrangements Similar to Leases for publication with a 4-month comment period. Both documents are planned for publication in January 2021.
5. Natural Resources
The IPSASB continued its discussions on the draft Consultation Paper (CP) and:
- Considered advice from the Consultative Advisory Group (CAG) on sovereign powers and the asset recognition criteria;
- Reviewed the draft CP chapter on subsoil resources and provided input on whether subsoil resources can be controlled prior to extraction and when such resources can be reliably measured; and
- Discussed IFRS 6, Exploration for and Evaluation of Mineral Resources and its potential applicability in the public sector.
6. Revenue & Transfer Expenses - ED 70-72
The staff presented the IPSASB with a preliminary analysis of the responses to Exposure Drafts (ED) 70-72, along with feedback from the December 2020 CAG meeting on the issues of the interrelation of the EDs and the extent of disclosures. The IPSASB provided feedback and further items for consideration at the March 2021 meeting, when staff will also provide further analysis on the responses received to the EDs, as well as a project management plan.
7. Next Meeting
The IPSASB will hold a virtual check-in meeting in February 2021 and hold its next full meeting in March, 2021. For more information, or to register as an observer for either meeting, visit the IPSASB website.