NEW YORK - The International Public Sector Accounting Standards Board (IPSASB®), developer of IPSAS® Accounting Standards, international accrual-based accounting standards for use by governments and other public sector entities around the world, issued Amendments to IPSAS Standards as a Result of the Application of IPSAS 46, Measurement.
IPSAS 46, Measurement introduced a new measurement basis for the public sector called current operational value, a public sector-specific measurement approach designed to reflect the value of assets used to deliver services, rather than to generate cash. Following its release, along with an update to Chapter 7 of the Conceptual Framework, the IPSASB began reviewing how current operational value could apply across existing IPSAS Standards.
The IPSASB issued a draft of its proposals in August 2024 and incorporated the stakeholder feedback it received to shape the final standard out today.
“These changes aim to improve how governments and public sector entities report the value of assets they use to deliver services. The pronouncement offers an integrated approach to valuation, guiding entities in measuring the current value of inventories and determining impairment in the public sector,” said Ian Carruthers, IPSASB Chair.“These amendments give public sector financial statement users more relevant, faithfully representative measurement information through broader application of public sector specific measurement guidance.”
The amendments include the introduction of current operational value in IPSAS 12, Inventories, and IPSAS 21, Impairment Non-Cash Generating Assets, the addition of a definition of accounting estimates to IPSAS 3, Accounting Policies, Changes in Accounting Estimates and Errors, and the enhancement of the terminology in current value measurement disclosures.
Amendments to IPSAS Standards as a Result of the Application of IPSAS 46, Measurement has an effective date of January 1, 2028. Earlier application is permitted.
Source: www.ifac.org