In a recent meeting the International Public Sector Accounting Standards Board (IPSASB) made significant decisions in the development of a new International Public Sector Accounting Standard (IPSAS) to replace IPSAS 1, Presentation of Financial Statements.

The project is currently in the Consultation Paper (CP) development phase, with the aim to improve transparency and comparability in financial reporting.

The key discussion related to presentation and categorisation of revenue and expense items recognised outside the financial statements.

1. The IPSASB deliberated on the categorisation of revenue and expense items on the Statement of Financial Performance. The board considered two practical approaches: using IFRS 18 categories or developing public-sector-specific categories.
2. The board discussed the presentation of revenue and expense items recognised outside of surplus or deficit. The focus was on whether to align with IFRS 18 requirements or retain and enhance IPSAS 1 requirements. Board considered retaining and enhancing IPSAS 1 requirements to present these items on the Statement of Changes in Net Assets/Equity, as this approach already provides sufficient transparency and meets the needs of users of public sector financial statements. The Board considered using “Other Financial Performance” (and by extension, “Total Financial Performance”) to refer to revenue and expenses items recognised outside of surplus and deficit.

The Board decided that the Secretariat should conduct more research on developing a public sector specific category, which will be considered in the next meeting. The Board decided not to introduce other comprehensive income to present revenue and expenses items recognised outside of surplus and deficit.

📢More updates will follow as the IPSASB continues to work 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.