The article published on 21 July 2026:IPSAS Presentation: What do financial statements communicate to users? – ASB considered the general presentation requirements that provide the foundation for the financial statements. This post narrows the focus to the Statement of Financial Position and considers whether the IPSASB is proposing fundamental changes or a more limited refinement of the existing presentation requirements.
Classification of assets and liabilities
The IPSASB proposes to retain the current/non-current classification as the primary approach, while continuing to allow presentation based on the order of liquidity or a mixed approach. This suggests that, for the Statement of Financial Position, the IPSASB considers the existing flexibility to be useful because different public sector entities may manage and present their financial position in different ways.
Presentation of specific line items
Within that overall approach, the IPSASB proposes a targeted refinement: adding a separate goodwill line item to the list of required line items displayed on the Statement of Financial Position. This would align with IFRS 18 Presentation and Disclosure in Financial Statements and ensure that goodwill is distinguishable from other intangible assets.
Structure and presentation of subtotals
The IPSASB also considered whether more prescriptive formats or additional subtotals could improve comparability. However, it concluded not to include such a proposal in the Consultation Paper because a more prescriptive approach could reduce flexibility and may not reflect how public sector entities manage their financial position. The IPSASB therefore appears to favour retaining an approach that allows entities to tailor the structure of the statement to their circumstances and users’ needs.
Overall, the proposals for the Statement of Financial Position are limited and largely preserve the existing approach. Keep an eye out for the next article in the series, which turns to the Statement of Financial Performance, where more fundamental changes are being explored.
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 views 5 to 7 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.