The International Public Sector Accounting Standards Board (IPSASB) continues to advance its project to develop a new IPSAS to replace IPSAS 1, Presentation of Financial Statements. The Consultation Paper (CP) is now in the final stages of development, with progress made on key chapters at the September 2025 meeting.
General Presentation Requirements
The IPSASB concluded its deliberations on the remaining general presentation requirements, focusing on two critical areas:
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Going Concern
After careful consideration, the IPSASB agreed to maintain the current requirements outlined in IPSAS 1 concerning the going concern assumption. These requirements remain closely aligned with private sector guidance and are deemed appropriate for application within the public sector context.
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Materiality
The IPSASB resolved to adopt the updated guidance from the recent Definition of Material pronouncement. This move ensures that the approach to materiality remains consistent across all IPSAS standards.
Statement of Changes in Net Assets/Equity
The IPSASB decided to maintain the existing requirements for the Statement of Changes in Net Assets/Equity with an important enhancement. Now, entities will no longer have the option to present the reconciliation of each component of net assets or equity in the notes. Instead, the reconciliation must be presented directly on the face of the statement. This change intends to enhance both transparency and comparability in financial reporting, ensuring that users can easily understand the reconciliation.
Applicability of IFRIC 17
The Board concluded that guidance based on IFRIC 17 Distribution of Non-cash Assets to Owners should not be incorporated into IPSAS, as such transactions are not prevalent in the public sector.
Next Steps
In the next quarter, the IPSASB will address the final chapter on note disclosures and continue work on the illustrative Exposure Draft.
📢 More updates will follow as the IPSASB moves towards finalising the CP.
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.