ASB comments on proposed changes to the IPSASB’s Conceptual Framework

The ASB issued its comment letter to the IPSASB on its proposed changes to the Conceptual Framework. The comment letter was developed after consultation with stakeholders locally.

Most amendments improved the principles of general purpose financial reporting, or better explained how certain principles should be applied. This is particularly the case for the definition of resources and what they are in the public sector. The principle on the unit of account was also supported, although certain text was too specific for the Conceptual Framework.

Notably, some stakeholders indicated that changes to the Conceptual Framework should not be made on an ongoing basis to respond to ongoing standard-setting projects. The changes should also have clear merit for the public sector as opposed to merely achieving alignment with the private sector equivalent.

The ASB will continue to monitor the project and assess if or how these changes will be adopted locally.