ASB comments on proposed IPSAS on revenue and transfer expenses

  • November 9, 2020
  • Posted by: Julianne Vissie
  • Category: Blog
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The International Public Sector Accounting Standards Board (IPSASB) issued proposed Standards on revenue and transfer expenses for comment. The comment deadline was 1 November 2020.

After extensive consultation with stakeholders locally, the Secretariat of the ASB submitted comment letters to the IPSASB. Thank you to all that participated in our discussions and submitted comments. Your inputs were invaluable. Information about the submissions is included below.

 

Proposed IPSAS High-level comments Response to the IPSASB

ED 70 on Revenue with Performance Obligations

[Replacement of IPSAS 9 on Revenue from Exchange Transactions and IPSAS 11 on Construction Contracts]

 ED 70 is based on IFRS 15 on Revenue from Contracts with Customers and is designed for commercial transactions. Experiences on the application of IFRS 15 in the private sector were shared. Concerns were raised with the potential complexity and whether the approach is appropriate to some public sector transactions.

Overall concerns with extending the approach in IFRS15 to other revenue as well as expense transactions.

  ED 181 on ASB website
ED 71 on Revenue without Performance Obligations

[Revision of IPSAS 23 on Revenue from Non-Exchange Transactions (Taxes and Transfers)]

  

IPSAS 23 has been revised to align it with the recognition and measurement principles in ED 70.

Questions raised about whether present obligations arise from requirements to incur eligible expenditure or specified activities on their own.

The measurement requirements in ED 70 have been modified to replace the existing principles in IPSAS 23 to measure taxes. Concerns were expressed about the increased level of complexity for an already complex estimate.

  ED 182 on ASB website
ED 72 on Transfer Expenses

[New Standard]

  

The principles in ED 72 replicate those proposed in ED 70 and ED 71. Concerns expressed about the complexity of the approach to recognition and measurement, as well as overly onerous disclosures.

Uncertainty expressed about the distinction between transactions in the scope of IPSAS 19 on Provisions, Contingent Liabilities and Contingent Assets and ED 72 – particularly for goods and services provided to individuals.

 ED 183 on ASB website

The IPSASB plans to discuss an initial overview of comments in December 2020. The IPSASB’s current work programme indicates publication of the final IPSAS in September 2021. The project timeline would however depend on the responses received.

To stay informed, follow the IPSASB projects by following this link.

This article was prepared by the Secretariat of the ASB.

 



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