Feedback from the September 2023 IPSASB meeting

The IPSASB met in September 2023 and progressed several projects. The key discussions and decisions are summarised below. Access the full IPSASB news alert here.

Approvals
2024-2028 Strategy and Work Programme Consultation	The key proposal is to focus on maintaining IPSAS during 2024-2028. The strategy confirms the IPSASB’s previous decision to develop sustainability reporting standards. The ASB will consult local stakeholders to respond to the IPSASB.
IPSAS 49 on Retirement Benefit Plans	IPSAS 49 provides accounting and reporting requirements for plans that provide retirement benefits to public sector employees. The Standard will be effective for periods beginning on or after 1 January 2026.
ED 85 on Improvements to IPSAS, 2023	ED 85 proposes minor amendments to IPSAS from narrow-scope projects of the International Accounting Standards Board. The changes include amendments to IPSAS 43 on Leases and IPSAS 1 on Presentation of Financial Statements.
Project brief on Presentation of Financial Statements	The IPSASB agreed the scope of the project should be consistent with the scope of IPSAS 1 on Presentation of Financial Statements and may include consequential amendments to other IPSAS such as IPSAS 2 on Cash Flow Statements and IPSAS 24 on Presentation of Budget Information in Financial statements.
Projects in progress
Leases: Concessionary Leases and Right-of-Use Assets In-kind	The IPSASB continued to review the responses to ED 84 on Concessionary Leases and Right-of-Use Assets In-kind. They agreed to proceed with the proposed principles and finalise the guidance by March 2024. Further work will be done to consider the interaction with IPSAS 47 on Revenue. Communication will be considered on other lease-type arrangements that are outside the scope of the guidance.
Natural resources	The IPSASB agreed to revise the definition of a natural resource as a “naturally occurring item which embodies service potential or the capability to generate economic benefits”. They will also reconsider the proposals on recognition and measurement, and whether the proposed guidance should be located in a standalone standard or as amendments to existing IPSAS.
ED on Exploration for and Evaluation of Mineral Resources	The IPSASB reviewed a first draft of an ED aligned with IFRS 6 on Exploration for and Evaluation of Mineral Resources. The ED will include guidance from IFRIC 20 on Stripping Costs in the Production Phase of a Surface Mine.
Measurement application phase	The IPSASB concluded current operational value could apply to assets within the scope of IPSAS 32 on Service Concession Arrangements: Grantor. Further analysis on its applicability to IPSAS 12 on Inventories and IPSAS 43 on Leases will be considered at the December meeting, together with illustrative examples on its potential use in IPSAS 21 on Impairment of Non-Cash-Generating Assets.
Differential reporting	In lieu of a standard setting solution, the IPSASB will, with the help of a partner, develop practical application material to assist preparers navigate and apply IPSAS more easily. The IPSASB aims to publish a feedback statement to summarise the rationale for the project direction.
First-time adoption of accrual based IPSAS	The IPSASB considered options to improve IPSAS 33 on First-time Adoption of Accrual Basis IPSASs so that it is clear, user friendly and effective. Material will be rearranged by topic and supported by non-authoritative guidance.
Sustainability reporting
Climate related disclosures	The IPSASB agreed on its approach to develop its climate-related disclosure standard, drawing from IFRS S1 (as may be appropriate), IFRS S2 and GRI Standards. The IPSASB also agreed how it would incorporate climate expertise into the process.

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.