The ASB is consulting on the IPSASB’s proposed Standard on Tangible Natural Resources and you have an opportunity to comment. The proposed IPSAS is locally issued as ED 212.

The article published on 3 February 2025 considers the recognition, measure, presentation and disclosure requirements in the proposed IPSAS. The following Specific Matters for Comment request respondents’ views on the matters noted in the article:  

Specific Matter for Comment 3: Depreciation (paragraph 23):

This Exposure Draft includes a rebuttable presumption that the tangible natural resources recognized within the scope of this [draft] Standard have indefinite useful lives on the basis that they are generally not used or consumed in the same manner as tangible assets within the scope of other IPSAS. Therefore, these tangible natural resources are not depreciated.

Do you agree with the proposed rebuttable presumption that tangible natural resources should not be depreciated? If not, why not?

Specific Matter for Comment 4: Exemption from Certain Disclosures (paragraph 51):

As explained in paragraph BC31, this Exposure Draft exempts an entity from disclosing certain information which may lead to further degradation of tangible natural resources which are rare or endangered.

Do you agree with the proposed disclosure exemption? If not, why not?

Specific Matter for Comment 5: Cross-References to IPSAS 45, Property, Plant, and Equipment (paragraphs 15 and 54):

This Exposure Draft includes cross-references to the guidance in IPSAS 45 on the determination of cost in an exchange transaction and the disclosure requirements for current value. This guidance was incorporated by cross-reference as the acquisition of tangible natural resources is expected to be rare in the public sector, and there is familiarity with the principles on the determination of cost, which are consistent with those found in IPSAS 45.

Do you agree that these cross-references are sufficiently clear? If not, how should the above guidance be incorporated into the Final Standard?

Make sure that your comment reaches us by 14 February 2025. To respond to these and other questions posed in ED 212, you can either submit your written comment to info@asb.co.za or participate in scheduled consultations. Details of these consultations are shared on the “ASB Engage” post every alternate Friday. Comment on ED 212 closes on 14 February 2025

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.