Concurrent issue of IPSASB’s Exposure Draft on Tangible Natural Resources

The International Public Sector Accounting Standards Board (IPSASB) issued proposed guidance for the recognition, measurement, presentation and disclosure of tangible natural resources. Tangible natural resources are natural resources with physical substance. A natural resource is a naturally occurring item which embodies service potential, or the capacity to generate economic benefits or both.  

The proposed International Public Sector Accounting Standard (IPSAS) is a residual standard, meaning that it applies to an item that meets the definition of tangible natural resources and is not within the scope of other existing IPSAS. Determining whether an item is within the scope of the proposed IPSAS is driven by the entity’s primary intended purpose for holding the item. Tangible natural resources held for conservation are likely to fall within the scope of the proposed IPSAS. 

The Board issued the proposed IPSAS concurrently as ED 212. High-level proposals in the ED are outlined in our article on 7 October 2024. 

The local impact…… 

Locally, GRAP 110 on Living and Non-Living Resources is effective, providing guidance on resources that undergo biological transformation, for example, animals in a conservation area, and resources that occur naturally and have not been extracted, for example, water and unextracted minerals. The proposed IPSAS has no impact on the local requirements. The Board may consider the appropriateness of the final IPSAS guidance at a future point.  

Want to share your comment? 

The Board encourages local stakeholders to share their comments on the IPSAS ED as input into the IPSASB’s standard-setting process. Comments can be shared through written submissions, or stakeholders can participate in the roundtable discussions scheduled by the Secretariat. Look out for the “ASB Engage” post every alternate Friday for more information.  

The local comment deadline for ED 212 is 14 February 2025.

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.