IPSASB eNews: December 2021

Dec 15, 2021 | English

The IPSASB held its fourth meeting of the year virtually on December 7-10 and 14-15, 2021.

  1. Leases
  2. Improvements
  3. Retirement Benefit Plans
  4. Conceptual Framework-Limited Scope Update-Next Stage
  5. Natural Resources
  6. Revenue and Transfer Expenses
  7. Mid-Period Work Program Consultation
  8. Measurement Suite of EDs
  9. Year End Review

1. Leases

The IPSASB approved IPSAS 43, Leases with an effective date of January 1, 2025. IPSAS 43 supersedes IPSAS 13, Leases and introduces the right-of-use model for lessees, aligning with IFRS 16, Leases. IPSAS 43 is expected to be published in January 2022. The IPSASB will continue consideration of public sector specific leasing issues, such as concessionary leases, in its Other Lease-Type Arrangements project.

 

2. Improvements

The IPSASB approved Improvements to IPSAS, 2021 with an effective date of January 1, 2023, except for the Interest Rate Benchmark Reform related amendments to IPSAS 29, Financial Instruments: Recognition and Measurement, which will have an effective date of January 1, 2022. Improvements to IPSAS, 2021 is expected to be published in January 2022.

 

3. Retirement Benefit Plans

The IPSASB voted to preliminary approve ED 82, Retirement Benefit Plans. ED 82 provides accounting and reporting requirements for public sector retirement benefit plans and is adapted from IAS 26, Accounting and Reporting by Retirement Benefit Plans. The IPSASB will finalize ED 82 at its February 2022 meeting.

 

4. Conceptual Framework-Limited Scope Update-Next Stage

The IPSASB approved ED 81, Conceptual Framework Update: Chapter 3, Qualitative Characteristics and Chapter 5, Elements. ED 81 will be published early in 2022 with a four-month consultation period. In December, the IPSASB finalized its proposals for the description of a resource and revisions to Chapter 5, which includes sections on unit of account and liabilities.  

 

5. Natural Resources

The IPSASB reviewed updates to the draft Natural Resources Consultation Paper and performed a detailed page-by-page review of the introductory chapter, as well as the chapters on presentation, living resources, and water. Other than certain clarifications and editorial comments, no significant issues were noted by the IPSASB’s review. The Consultation Paper is expected to be approved at the March 2022 meeting.

 

6. Revenue and Transfer Expenses

The IPSASB discussed accounting models proposed for Transfer Expenses with, and without, binding arrangements and reviewed guidance related to specific aspects of the draft standard. The IPSASB confirmed an entity’s obligation in revenue transactions with binding arrangements is a narrower concept than ‘present obligation’ in the Conceptual Framework, and clarified how to distinguish individual obligations in a binding arrangement. The IPSASB agreed that specified activities and eligible expenditures are examples of ways in which an entity may fulfill obligations.

 

7. Mid-Period Work Program Consultation

The IPSASB performed its preliminary analysis of the responses to the Work Program Consultation. Based on the strong support from respondents, the IPSASB tentatively agreed to prioritize the two major and four minor projects proposed in the Consultation and decided a feedback statement should be developed to capture constituent feedback. The project prioritization and feedback statement are expected to be approved in March 2022. Finally, the IPSASB discussed the strong feedback received that indicated sustainability reporting should be prioritized.

 

8. Measurement Suite of EDs

A preliminary analysis of the responses to the Measurement Suite of Exposure Drafts (ED) 76-79 was discussed by the IPSASB. Respondents strongly supported most proposals, and it was clear the IPSASB’s efforts in developing an illustrative ED as part of the consultation process in 2019 paid dividends. The IPSASB focused its discussions on the diverse views related to the public sector specific measurement basis proposed and agreed the Board would have to dedicate resources in 2022 to address concerns identified.  

 

9. Year End Review

Watch the IPSASB's Year End Review: 2021 on YouTube

 
 
 

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