IPSASB ED 74

  • Not-for-profit
  • Public Sector

IPSASB proposes to clarify guidance on borrowing costs

The International Public Sector Accounting Standards Board (IPSASB) has recently issued for comment ED 74 IPSAS 5, Borrowing Costs – Non-authoritative Guidance (the ED).

The ED proposes to add non-authoritative implementation guidance and illustrative examples to IPSAS 5. The proposals aim to clarify how the existing principles in IPSAS 5 on the capitalisation of borrowing costs should be applied in the public sector context. The ED does not propose to amend the authoritative material in IPSAS 5.

The objective of the proposals is to address the practical challenges that IPSASB constituents identified in determining when and how borrowing costs can be capitalised.

The New Zealand Accounting Standards Board (NZASB) encourages you to read the ED and to comment on the proposals.

The XRB’s Policy Approach to Developing PBE Standards establishes a rebuttable presumption that the NZASB will adopt a new or amended IPSAS. Prior to doing this the NZASB would consult with constituents again.

Consultation Document

Commenting on the Proposal

This is your opportunity to comment on the IPSASB’s proposals.

The NZASB is not intending to make a submission on the proposals. We encourage you to send comments directly to the IPSASB by 1 March 2021, with a copy to the NZASB. Your comments can be made electronically to the IPSASB website (https://www.ipsasb.org/consultations-projects/open-public-consultations

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