IPSASB proposes effective date deferrals in response to COVID-19

The International Public Sector Accounting Standards Board (IPSASB) has recently issued for comment ED 73 COVID 19: Deferral of Effective Dates (the ED) which proposes to defer the effective date of some recently issued standards and amendments by one year, from 1 January 2022 to 1 January 2023.

We are bringing the ED to your attention as part of our usual process of notifying New Zealand constituents about the IPSASB’s proposals. Once the IPSASB has finalised any amendments, the NZASB will consider the relevance of the amendments for New Zealand PBEs.

As shown in the table below, the only proposal in ED 73 that might be currently relevant to New Zealand PBE Standards is the proposal to defer the effective date of IPSAS 41 Financial Instruments.

This proposal would not necessarily be relevant for New Zealand PBEs, as central government entities already apply PBE IFRS 9 Financial Instruments, which has similar requirements to PBE IPSAS 41.

Furthermore, other public sector and not-for-profit entities have had a significant lead-in period to prepare for the adoption of PBE IPSAS 41.

IPSASB proposes to defer the effective date of the following standards and amendments

Relevant PBE Standard in New Zealand

(a) IPSAS 41 Financial Instruments

PBE IPSAS 41 Financial Instruments

(b) IPSAS 42 Social Benefits

Not immediately applicable – the NZASB will decide whether to include these topics in PBE Standards once the IPSASB has completed its related project on transfer expenses

(c) Collective and Individual Services (Amendments to IPSAS 19)

Not immediately applicable – same reason as above

(d) Long-term Interests in Associates and Joint Ventures (Amendments to IPSAS 36) and Prepayment Features with Negative Compensation (Amendments to IPSAS 41)

Not applicable – in New Zealand, these requirements are already in PBE IPSAS 41

(e) Improvements to IPSAS, 2019 – but only for amendments relating to IPSAS 41.

Not applicable – in New Zealand, equivalent requirements are already in PBE IPSAS 41