The International Public Sector Accounting Standards Board (IPSASB) has published ED 53 First-Time Adoption of Accrual Basis International Public Sector Accounting Standards (IPSASs).
The objective of this International Public Sector Accounting Standard (IPSAS) is to ensure that an entity’s first annual financial statements prepared using accrual basis IPSASs, contain high quality information that:
(a) Provides transparent reporting about, and better insight into, a first-time adopter’s transition to accrual basis IPSASs;
(b) Provides a suitable starting point for accounting in accordance with accrual basis IPSASs irrespective of the basis of accounting the first-time adopter has used prior to the date of adoption of accrual basis IPSASs; and
(c) Can be generated at a cost that does not exceed the benefits.
The proposed standard provides exemptions during the transition period. It identifies those transitional exemptions that impact fair presentation and an entity’s ability to assert compliance with accrual basis IPSASs, and separates them from those that do not.
In May 2013, the New Zealand Accounting Standards Board (NZASB) issued the PBE Standards – a new suite of standards for Tier 1 and Tier 2 public benefit entities. That initial set of standards is primarily based on International Public Sector Accounting Standards. At the time PBE Standards were developed there was no IPSAS dealing with first-time adoption. The NZASB therefore developed two domestic standards for New Zealand PBEs adopting PBE Standards:
Because the NZASB has already established requirements for transition to PBE Standards, the NZASB is not proposing to incorporate the proposals in ED 53 in PBE Standards. However, given their previous experience with the adoption of NZ IFRSs and for public sector entities, the forthcoming adoption of PBE Standards, the views of New Zealand constituents could be helpful to the IPSASB.
Comments, both formal and informal, can be made to the New Zealand Accounting Standards Board (NZASB) addressed to the Chief Executive, External Reporting Board, PO Box 11250, Manners Street Central, Wellington 6142, or by email to email@example.com.
Respondents are also encouraged to send comments directly to the IPSASB, with a copy to the NZASB. Comments can be made electronically to the IPSASB website (www.ifac.org) using the “Submit a Comment” link in the ED.
It would be appreciated if respondents send their comments in electronic form (PDF and Microsoft Word formats) as it allows for efficient collation and analysis of comments. All comments will ultimately be posted on the XRB website unless respondents indicate that they wish their comments to remain confidential.
Comments are due to the NZASB by 17 January 2014 and to the IPSASB by 15 February 2014.
Read IPSASB At a Glance: Exposure Draft 53, First-Time Adoption of Accrual Basis International Public Sector Accounting Standards (IPSASs) (October 2013)
Read IPSASB Exposure Draft 53, First-Time Adoption of Accrual Basis International Public Sector Accounting Standards (IPSASs) (October 2013)