IPSASB discusses definition for public sector measurement basis

Since publishing its new public sector specific measurement basis for comment in 2021 – current operational value (COV) – the IPSASB spent time to clearly articulate the principles of the basis and clarify its application.

At the October 2022 check-in meeting, staff used the principles to define the measurement basis, and propose guidance in the IPSASB’s Conceptual Framework and new standard on measurement that support this definition. The IPSASB may consider both these pronouncements for approval at the December 2022 meeting.

What are the principles applicable to COV?

COV is a current value measurement basis that applies to assets that are held for their service potential, rather than to generate economic benefits.

The following principles apply to COV:

The IPSASB agreed that the objective of COV and supporting guidance will be described with reference to these principles. The IPSASB considered a proposed definition for COV. Based on members’ comment, the definition and related guidance will be refined for the December 2022 meeting.

Next steps

The IPSASB will consider the IPSAS on Measurement and measurement chapter of the Conceptual Framework for approval in December 2022.

Disclaimer

The article has been prepared by the Secretariat of the ASB for information purposes only. It has not been reviewed, approved, or otherwise acted on by the Board.