Feedback from IPSASB quarterly meeting

The IPSASB met from 17 to 20 September 2024. Many pronouncements and other documents were approved, either for public consultation, or as final. The meeting included the 10-year celebration of the IPSASB’s Conceptual Framework.

Approvals

• ED on Tangible Natural Resources

The ED proposed new guidance for tangible natural resources that are no in the scope of existing IPSAS. Amendments are proposed to the definition of heritage assets in IPSAS 45 Property, Plant and Equipment, so that tangible natural resources held for conservation are in the scope of the ED.

The ASB will consult on the ED locally. Contact amandab@asb.co.za to be involved.

• ED on Climate-related Disclosures

This is a landmark ED, being the first of the IPSASB’s Sustainability Reporting Standards (SRS). The ED proposes disclosures aligned with IFRS S2 on Climate-related Disclosures for all public sector entities’ own operations. Entities that have responsibility for the outcomes of climate-related public policy programmes are required to provide further disclosures on the outcomes of those programmes.

The ASB will consult on the ED locally. Contact nabeelai@asb.co.za to be involved.

• Final IPSASB strategy and work programme 2024-28

The IPSASB strategy for the next period shifts the focus of the work on financial reporting from development of IPSAS to maintenance. Maintenance activities includes establishing an application panel and conducting post-implementation reviews. The IPSASB will continue to develop IPSASB SRS as resources are available.

• Mineral Resources and Stripping Costs 

IPSAS 50 on Exploration for and Evaluation of Mineral Resources, and amendments to IPSAS 12 on Inventory to include guidance on Stripping Costs in the Production Phase of a Surface Mine were approved as final pronouncements. They provide guidance for public sector entities operating in extractive industries, with accounting guidance aligned with the private sector. They will be effective from 1 January 2027 with early adoption permitted.

Other projects discussed included Presentation of Financial Statements. The IPSASB agreed:

• General requirements for financial statements – the same principles as currently in IPSAS 1 on Presentation of Financial Statements and IFRS 18 on Presentation of Financial Statements will be carried forward to the new IPSAS. A change from IPSAS 1 will be proposed to require comparative information for an additional period when an entity corrects prior period errors, to align with IFRS 18. 
• Aggregation and disaggregation – new guidance from IFRS 18 on aggregation and disaggregation will be proposed for the new IPSAS. 
• Order of liquidity – this presentation will be allowed under the same exceptional circumstances as in IFRS 18.

Watch the recordings of the meeting on the IPSASB’s YouTube channel.

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.