IPSASB delays effective dates of Standards

In the wake of the COVID-19 pandemic and the impact this has had on entities’ operations, the IPSASB agreed in September 2020 to delay the effective dates of IPSAS that were due to be adopted.

After consultation with stakeholders, the IPSASB agreed to delay the effective dates of the following Standards, or amendments to Standards, by one year to the 1^st of January 2023:

(a) IPSAS 41 on Financial Instruments (including amendments related to Prepayment Features with Negative Compensation);

(b) IPSAS 42 on Social Benefits;

(c) Long-term Interests in Associates and Joint Ventures (Amendments to IPSAS 36);

(d) Collective and Individual Services (Amendments to IPSAS 19); and

(f) Improvements to IPSAS, 2019.

The Secretariat of the ASB also considered whether it should propose to the Board to delay the effective dates of similar Standards. It was not deemed necessary for the following reasons:

• Financial Instruments and related amendments – The proposed effective date of the revision of GRAP 104 on Financial Instruments, which is similar to IPSAS 41, is 1 April 2024. This is already later than the date proposed by the IPSASB. A submission has also already been made to the Minister of Finance on the proposed date.
• Social benefits –There is currently no equivalent Standard of GRAP. Work will commence on this project in 2021.
• Amendments to IPSAS 36 – These changes are already included in GRAP 36 on Investments in Associates which is effective from 1 April 2020.
• Collective and individual services – There are no equivalent changes to GRAP 19 on Provisions, Contingent Liabilities and Contingent Assets. These changes will be considered in a future project.
• Improvements to IPSAS – These amendments have not yet been considered locally. The next Improvements Project is scheduled for 2023.

This article was prepared by the Secretariat of the ASB.