A step toward the substitution of IPSAS 1: Presentation of Financial Statement

  • April 29, 2024
  • Posted by: Julianne Vissie
  • Category: Blog
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The IPSASB discussed the creation of a new IPSAS on Presentation of Financial Statements. Deliberations included definitions and fundamental presentation requirements including how information is presented in general-purpose financial statements (GFS).

The following project drivers were identified:

Definitions and fundamental presentation requirements:

Presentation area discussed Recommendations
Definitions of financial statement elements
Currently definitions of financial statement elements are in IPSAS 1. The recognition of financial statement elements in particular circumstances is addressed through individual IPSASs. The IPSAS 1 definitions require updates to ensure consistency with the IPSASB Conceptual Framework (CF). Update financial statement elements to ensure consistency with the Conceptual Framework (CF) and include definitions of financial statement elements in the illustrative Exposure Draft (ED) of the new IPSAS.
Additional Comparative Information
IPSAS has not adopted the IASB requirement to present a statement of financial position at the beginning of the earliest comparative period in specific circumstances. The additional comparative information provides increased transparency when retrospective amendments result in a material restatement of the opening net assets/equity position of an entity. Replace IPSAS 1 to include requirements to present additional comparative information aligned with IAS 1 (and draft IFRS18).
General presentation requirements – Offsetting
IPSAS 1 prohibits an entity from offsetting assets and liabilities or revenue and expenses unless specifically required or permitted by an individual standard. The general presentation requirements on offsetting should be carried forward from IPSAS 1.
General presentation requirements – Disclosure of Fair Presentation and Compliance with IPSASs
IPSAS 1 outlines the requirements for the disclosure of compliance with IPSAS and the disclosures required when a departure from IPSAS is needed to ensure a fair presentation of the financial statements. The general presentation requirements on disclosure of fair presentation and compliance should be carried forward from IPSAS 1.

The discussion on general presentation requirements will continue in the next IPSASB meeting, which will be held in June 2024. Additionally, the IPSASB will discuss the Statement of Financial Performance, Statement of Financial Position, Other Comprehensive revenue and expense, and Statement of changes in Net Assets/Equity. Follow further developments on this project by subscribing to the ASB’s newsletter, or follow the IPSASB’s Presentation of financial statement project on Presentation of Financial Statements | IPSASB.

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.

 



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