The IPSASB held its third meeting of the year in Lisbon, Portugal on September 12-16, 2022.
1. Measurement
8. Next Meeting
The IPSASB confirmed the principles related to Current Operational Value (COV) and discussed their practical application. The IPSASB will next focus on refining the COV definition and clarifying the drafting in the authoritative and non-authoritative text based on the decisions made in September.
The IPSASB completed its review of responses to ED 76, Conceptual Framework Update: Chapter 7, Measurement of Assets and Liabilities in Financial Statements. The IPSASB decided not to include replacement cost in an updated Chapter 7. The IPSASB also decided to retain the approach proposed in ED 76 whereby value in use is discussed in the context of impairment, but left to be defined in the relevant IPSAS.
The IPSASB completed its detailed review of the responses to ED 78, Property, Plant, and Equipment. The IPSASB agreed that the primary objective for why an entity holds an asset guides the selection of the measurement basis, and the measurement model shall be applied to the entire class of property, plant, and equipment.
The IPSASB finished discussing all principle-related Revenue and Transfer Expenses issues. In particular, the Board agreed to strengthen the consistency between the transfer expense accounting and presentation requirements with those throughout existing IPSAS. The IPSASB also reviewed the revised authoritative text of the draft Transfer Expenses IPSAS, which reflects the revised principles developed in previous meetings.
The IPSASB approved ED 83, Reporting Sustainability Program Information, which proposes additional guidance to RPG 1, Reporting on the Long-Term Sustainability of an Entity’s Finances, and RPG 3, Reporting Service Performance Information. The additional guidance proposes illustrative examples and implementation guidance to clarify the application of key concepts in the guidance to reporting on sustainability program information. ED 83 will be exposed for a 60-day period from the date of publication.
The IPSASB discussed the arrangements identified in the responses to the Request for Information, Concessionary Leases and Other Arrangements Similar to Leases. The IPSASB agreed these arrangements fell within the scope of existing IPSAS and decided to publish a feedback statement, or similar document, highlighting this guidance. The IPSASB decided the scope of IPSAS 43, Leases should not be expanded beyond contracts.
The IPSASB reviewed several differential reporting models. The different approaches adopted by various jurisdictions allowed the Board to gain a better understanding as to the various practices worldwide. The IPSASB will continue its research and follow developments as it looks to develop a differential reporting model that can be applied globally for the public sector.
The next full meeting of the IPSASB will take place in December 2022 in Toronto, Canada. For more information, or to register as an observer, visit the IPSASB website.
On 19-20 September, 2022, the IPSASB welcomed standard setters from around the world to its 4th Public Sector Standards Setters Forum hosted by the Order Certified Accountants (OCC) in Cascais, Portugal. Attendees collaborated to scope the IPSASB's new guidance projects, shape the IPSASB's next 5-year strategy, and engage in lively discussions around the advancement of sustainability reporting in the public sector and beyond. Thank you to our attendees, speakers, and fantastic host for bringing your energy and commitment to strengthening public sector accounting globally.