The article published on 11 August 2026 considered whether categories, totals and subtotals could provide users with better information about financial performance. Those proposals focus on the broad structure of the Statement of Financial Performance. The next question is how much detail should be presented within that structure.
Minimum line items
The IPSASB observed that the current IPSAS 1 Presentation of Financial Statements requirements for minimum line items have generally worked well in practice. It is therefore not proposing significant changes to the minimum line items required on the face of the Statement of Financial Performance. Instead, the IPSASB is considering whether additional guidance could help entities determine when further line items should be presented to provide a more useful summary of financial performance.
Presenting expenses by nature or function
The IPSASB is considering how expenses should be presented in the Statement of Financial Performance. Under the existing requirements, entities present expenses either by their nature or by their function.
The IPSASB noted that IFRS 18 Presentation and Disclosure in Financial Statements permits mixed presentation, where some expense line items are presented by nature and others by function. This may provide flexibility where one approach alone does not provide the most useful summary. However, it may also increase diversity in practice and make comparisons between entities more difficult.
The question for the public sector is therefore whether mixed presentation would help entities communicate more useful information, or whether it would reduce the comparability that the project is trying to improve.
In the next article, we consider the IPSASB’s specific proposals and invite stakeholders to provide their views on the appropriate balance between structure, flexibility and comparability.
Share your comment
The ASB is consulting locally through ED 221 to gather input that will inform South Africa’s response to the IPSASB’s proposals. The matters discussed above relate to Preliminary View 10 and Specific Matter for Comment 1 in the Consultation Paper. To get invited to roundtable discussions or share your written input, send an email to info@asb.co.za or siyasangan@asb.co.za before the comment deadline of 31 August 2026.
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.