The IPSASB has issued four new Exposure Drafts (EDs) for public comment. All four are focused on the measurement of assets and liabilities in the public sector and therefore should be read in conjunction with each other.
To help you, we have created an overview of each proposal:
- Exposure Draft 76, Conceptual Framework Update: Chapter 7, Measurement of Assets and Liabilities in Financial Statements. This Exposure Draft streamlines the measurement guidance in the Conceptual Framework by eliminating measurement bases that have not been used in the development of standards, inserting new or revised measurement bases, and focusing on bases that are commonly used.
- Exposure Draft 77, Measurement. This Exposure Draft proposes new guidance in a single standard, which addresses how commonly used measurement bases are applied in practice. The Exposure Draft brings in generic guidance on fair value for the first time. It also proposes a current value measurement basis that is specific to the public sector. This guidance is in response to stakeholder views that a new measurement basis is required as an alternative to fair value for assets held for their operational capacity.
- Exposure Draft 78, Property, Plant, and Equipment. This Exposure Draft updates IPSAS 17, Property, Plant, and Equipment by adding general measurement guidance and measurement options when accounting for assets within its scope, identifying the characteristics of heritage and infrastructure assets, and proposing new guidance on how these important types of public sector assets should be recognized and measured.
- Exposure Draft 79, Non-Current Assets Held for Sale and Discontinued Operations. This Exposure Draft is aligned with IFRS 5, Non-Current Assets Held for Sale and Discontinued Operations. It proposes new guidance on how to account for non-current assets that are classified as held for sale, when they meet specific criteria.
PSAB encourages stakeholders to send comments to the IPSASB until October 25, 2021.
We will be submitting our own response to the Exposure Drafts.
If you would like PSAB to consider your feedback during the development of our response, please reply to us by by October 11, 2021, via a comment letter.