IPSASB eNews: March 2021
Mar 26, 2021 | English
The IPSASB held its first meeting of the year virtually on March 16-19 and 23, 2021.
- Accounting and Reporting by Retirement Benefit Plans
- IFRS 8, Operating Segments
- Natural Resources
- Mid-Period Work Program Consultation
- Conceptual Framework-Limited Update-Next Stage
- Next Meeting
1. Accounting and Reporting by Retirement Benefit Plans
The IPSASB approved a Project Brief on Accounting and Reporting by Retirement Benefit Plans. In adapting IAS 26, Accounting and Reporting by Retirement Benefit Plans to the public sector, the IPSASB agreed to consider alternatives developed by National Public Sector Standard Setters to address the public sector issues identified.
2. IFRS 8, Operating Segments
The IPSASB received an educational session on a proposed limited-scope project to develop an IPSAS aligned with IFRS 8, Operating Segments. The session provided an overview of the requirements of IPSAS 18, Segment Reporting, IFRS 8, and public sector specific issues identified by stakeholders. The IPSASB decided to undertake more research and specifically gather further information related to the challenges in applying IPSAS 18 in practice before it decides whether to add the project to the Work Program.
The IPSASB discussed several key topics arising from the responses received on the revenue Exposure Drafts (ED) 70 and ED 71. The IPSASB:
- Decided that the proposed standards should be named and presented to reflect the prevalence of different types of revenue transactions in the public sector; and
- Clarified the accounting principles related to the concepts of binding arrangements, performance obligations, and what gives rise to a liability in a binding arrangement without performance obligations.
4. Natural Resources
The IPSASB continued its review of the draft Consultation Paper (CP) and provided feedback on the measurement of subsoil resources, the approach used to draft the chapter on living resources, and the description of living resources. In addition, the IPSASB decided the CP will:
Include guidance on the costs of exploration, evaluation, development, and production activities;
Provide potential options on how this guidance could be incorporated into IPSAS literature; and
Solicit constituents’ views on these options.
5. Mid-Period Work Program Consultation
The IPSASB received presentations on its 2019-2023 Strategy and Work Plan and academic outreach initiatives, including three research papers on proposed projects. These presentations set the stage for a robust discussion on prioritizing projects to be proposed in the Mid-Period Work Program Consultation. The work to develop the Mid-Period Work Program Consultation will continue during Q2 2021, and it is expected to be approved in June 2021.
6. Conceptual Framework-Limited Update-Next Stage
The IPSASB agreed to the grouping of topics proposed for the next stage of the project. The topics are those in the original project brief not addressed in the first stage of the project, except for concepts of capital and capital maintenance, which, because of their complexity, should be taken forward separately on a longer timeframe. The IPSASB also agreed to add the description of service potential in the context of an asset to the list of topics.
7. Next Meeting
The next full-meeting of the IPSASB will take place virtually in June 2021. For more information, or to register as an observer, visit the IPSASB website.