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The International Public Sector Accounting Standards Board (IPSASB) has released Exposure Draft (ED) 89, which proposes amendments based on five IFRIC interpretations issued by the IFRS interpretations Committee which the IPSASB had not yet considered.
The IPSASB proposes amendments to IPSAS for guidance based on the IFRIC interpretations which are applicable for public sector entities and helpful in applying existing IPSAS principles.
Each IFRIC interpretation addresses a specific application matter and provides guidance to support consistent application of accounting principles.
The interpretations considered in this narrow scope amendments project were IFRIC 1 (Changes in Existing Decommissioning, Restoration and Similar Liabilities), IFRIC 5 (Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds), IFRIC 6 (Liabilities arising from Participating in a Specific Market–Waste Electrical and Electronic Equipment), IFRIC 7 (Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies) and IFRIC 14, IAS 19 (The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction).
The board is now seeking feedback on ED 89 to guide it in developing a final pronouncement to amend IPSAS and introduce new guidance to clarify the application of existing principles.
As such, the exposure draft is open for public comment until 17 June and respondents are asked to submit their comment electronically through the IPSASB website.
IPSASB chair Ian Carruthers, said: “The amendments proposed in ED 89 draw on previous IFRIC interpretations to clarify how public sector entities should apply IPSAS in key areas, thereby avoiding divergent accounting treatments.
“Going forward, the IPSASB will consider the applicability of future IFRIC interpretations as they are issued to ensure we continue to support the public sector effectively.”
