An article published on 25 August 2026 elaborated on IPSASB’s considerations on what information should be more prominent in the financial statements. The article focused on whether IPSAS 1 requirements provide enough visibility over changes in net assets/equity. It also considered whether certain revenue and expense items should be recognised directly in net assets/equity rather than in surplus/deficit.
The Consultation Paper includes the following Preliminary Views on these matters:
Statement of Changes in Net Assets/Equity
Preliminary View 11
The IPSASB’s Preliminary View is to maintain (1) requirements to present revenue and expense items recognized outside surplus or deficit directly in net assets/equity, on the Statement of Changes in Net Assets/Equity, and (2) requirements related to reclassification adjustments.
Do you agree with the IPSASB’s Preliminary View, and are there additional enhancements to these IPSAS 1 requirements the IPSASB should consider (for example, whether to enhance disclosure requirements to help users better understand the nature and composition of material revenue and expense items recognized outside of surplus or deficit)?
If you do not agree, please provide your reasons and clearly explain what you consider should be changed.
Preliminary View 12
The IPSASB’s Preliminary View is to maintain the presentation requirements regarding the Statement of Changes in Net Assets/Equity and revise the reconciliation requirement to require the reconciliation be displayed on the face of the Statement.
Do you agree with the IPSASB’s Preliminary View?
If not, please provide your reasons and clearly explain what you consider should be changed.
Preliminary View 13
The IPSASB’s Preliminary View is that guidance based on IFRIC 17 Distribution of Non-cash Assets to Owners should not be incorporated into the IPSAS Standards, as the relevant transactions are not prevalent in the international public sector.
Do you agree with the IPSASB’s Preliminary View?
If not, please provide your reasons and clearly explain what you consider should be changed.
Disclosure of Information in the Notes
Preliminary View 14
The IPSASB’s Preliminary View is to retain existing IPSAS 1 requirements for the disclosure of information in the notes to the financial statements, and incorporate the IASB’s amendments to IAS 1 (as presented in paragraphs 6.7 and 6.12) which would align with equivalent IFRS Accounting Standards guidance.
Do you agree with the IPSASB’s Preliminary View?
If not, please provide your reasons and clearly explain what you consider should be changed.
Management-defined performance measures
Preliminary View 15
The IPSASB’s Preliminary View is to not incorporate the IFRS 18 definition and disclosure requirements for management-defined performance measures (MPMs) into the IPSAS Standards.
Do you agree with the IPSASB’s Preliminary View?
If not, please provide your reasons and clearly explain what you consider should be changed.
Preliminary View 16
The IPSASB’s Preliminary View is to not include an amended IFRS 18 MPM concept for application in the public sector (thereby not introducing an amended version of the IFRS 18 MPM definition or disclosure requirements into the IPSAS Standards).
Do you agree with the IPSASB’s Preliminary View?
If not, please:
a) Provide your reasons, and provide specific examples of alternative performance measures that are defined by management and provided in public communications outside the financial statements; and
b) Clearly explain why there is a need for greater transparency of those measures that warrants new guidance in the IPSAS Standards.
Share your comment
The ASB is consulting locally through ED 221 to gather input that will inform South Africa’s response. Please share your input on Preliminary Views 11 to 16 via email to info@asb.co.za or siyasangan@asb.co.za before the comment deadline of 31 August 2026.
Disclaimer
This post 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.