IPSASB Public Sector Conceptual Framework Exposure Draft – Presentation

The International Public Sector Accounting Standards Board (IPSASB) has released for comment the fourth Exposure Draft (ED) related to its project to develop a Conceptual Framework for the general purpose financial reporting of public sector entities. The Conceptual Framework continues to be the IPSASB’s key strategic objective and is of fundamental importance to the future of global public sector standard setting.

“This Exposure Draft is a further step in the development of a Conceptual Framework that reflects public sector circumstances and, when finalized, will underpin IPSASB’s standard-setting activities for many years to come,” said IPSASB Chair Andreas Bergmann. “It proposes presentation concepts applicable to all General Purpose Financial Reports (GPFRs). This is the first time that an international standard setter has developed presentation concepts applicable to both financial statements and additional information and reports that enhance, complement, and supplement the financial statements. Therefore this ED explores new ground and we strongly encourage all stakeholders to submit comments on the proposals in it.”

Conceptual Framework Exposure Draft 4, Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities: Presentation in General Purpose Financial Reports, further develops and modifies the conceptual approach highlighted in the Consultation Paper (CP) published in 2012 and reflects the IPSASB’s consideration of the responses to that CP. It builds on the first four chapters of the Conceptual Framework, which were published last January.

The ED describes presentation as the selection, location and organisation of information that is displayed and disclosed in GPFRs. GPFRs include both financial statements and other reports providing additional information that enhances, complements, and supplements the financial statements.

The ED also describes the terms ‘display’ and ‘disclosure’, and identifies three presentation decisions—information selection, location, and organisation. Presentation decisions are made at two levels:

  • high-level decisions that may result in development of a new report, movement of information between reports, or the amalgamation of existing reports; and
  • detailed decisions related to information selection, location, and organisation within a report.

Presentation decisions are made:

  • in response to the needs of users for information about economic or other phenomena;
  • to support the financial reporting objectives; and
  • through application of the qualitative characteristics and constraints on information in financial reports.

Presentation concepts are strongly linked to other parts of the Conceptual Framework and the ED explains those linkages. The first four chapters of the Conceptual Framework (now final) and the other EDs which have been issued as part of this project are available here.

How to Comment

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 submissions@xrb.govt.nz.

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 12 July 2013 and to the IPSASB by 15 August 2013.

Read IPSASB At a Glance - Conceptual Framework Exposure Draft Summary, Phase 4 of 4— Presentation in General Purpose Financial Reports (April 2013)

Read IPSASB ED Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities: Presentation in General Purpose Financial Reports (April 2013)

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