New Measurement proposals - IPSASB EDs

  • Not-for-profit
  • Public Sector

Tier 1 and Tier 2

The International Public Sector Accounting Standards Board (IPSASB) has published four exposure drafts (EDs) dealing with measurement of assets and liabilities.

  • ED 76 Conceptual Framework Update: Chapter 7, Measurement of Assets and Liabilities in Financial Statements
  • ED 77 Measurement
  • ED 78 Property, Plant and Equipment
  • ED 79 Non-current Assets Held for Sale and Discontinued Operations

Here we provide a detailed summary of each ED and why you might be interested in them.

Have a look

ED 76 updates Chapter 7 of the IPSASB Conceptual Framework. It proposes a new approach – current operational value – to measuring assets held for their operational capacity. It would also remove some of the measurement approaches currently mentioned in Chapter 7, but which have not been used in standards.

ED 77 proposes a new IPSAS which explains how to apply historical cost, fair value (aligned with IFRS 13 Fair Value Measurement), current operational value (the new approach) and cost of fulfilment when measuring assets and liabilities.

ED 78 proposes to update IPSAS 17 Property, Plant and Equipment, including changing the requirements for revalued assets. Some revalued assets would be measured using fair value (updated to be aligned with fair value as per IFRS 13) and some using current operational value (the new approach). These proposals would have the most impact on assets used in delivering goods and services that are currently measured using depreciated replacement cost – such assets would most likely be measured using current operational value. ED 78 also proposes some additional guidance on heritage and infrastructure assets.

ED 79 proposes a new IPSAS based on IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. Although this would fill a gap in IPSAS, we already have a PBE Standard based on IFRS 5 in New Zealand.

The proposals in the EDs are relevant for Tier 1 and Tier 2 public benefit entities (PBEs)—both not-for-profit and public sector entities. Once the IPSASB completes these projects, the NZASB will consider if equivalent changes should be made to PBE Standards. We therefore encourage all Tier 1 and Tier 2 PBEs to consider the proposals and provide feedback.

IPSASB Measurement Hierarchy diagram

Who should read these EDs?

If you:

  • Refer to Chapter 7 in the PBE Conceptual Framework, have a look at ED 76.
  • Currently measure assets at fair value under PBE Standards, use the guidance on depreciated replacement cost in PBE IPSAS  17 Property, Plant and Equipment, or deal with assets with restrictions, have a look at ED 77 and ED 78.
  • Currently apply PBE Standards to heritage or infrastructure assets, have a look at ED 78.
  • Regularly engage valuers to value specialised assets, have a look at ED 77 and ED 78.

Webinar - 8 July 2021

This gave an overview of the proposals and highlighted areas of interest.

View the webinar recording

 Download the slides

IPSASB Measurement Webinar slides

Accessing the consultation documents


Exposure Draft


ED 76

ED 77

ED 78

ED 79

Commenting on the proposals

Please send your comments to the NZASB by 2 September 2021, using the secure upload form below, or directly to the IPSASB (with a copy to the NZASB) by 25 October 2021. Please indicate which ED(s) your comments refer to.

You can make comments directly to the IPSASB website using the “Submit a Comment” link. First-time users must register with IFAC to submit electronically.

Upload your submission here

Please use this secure online form.

It has been designed to make your upload safe, quick and easy. 

You can:

  • Upload an MS Word document (and a PDF file, if you wish); or
  • Write your comments below in the space provided.

You can upload up to TWO documents. 

Please note:

  • We would appreciate receiving a copy of your comments in electronic form (preferably Microsoft Word format).  This helps us to more efficiently collate and analyse comments. Please also specify the exposure draft number and title in your electronic file. 

  • Tell us on whose behalf you are making the comments (for example on behalf of a group or an entity).

  • We intend publishing all comments on the XRB website, unless they may be defamatory. If you have any objection to this, we will not publish them. However, they will remain subject to the Official Information Act 1982 and, therefore, may be released in part or in full. The Privacy Act 1993 also applies.

  • If you have an objection to the release of any information contained in your comments, we would appreciate you identifying the parts of your comments to be withheld, and the grounds under the Official Information Act 1982 for doing so (for example, that it would be likely to unfairly prejudice the commercial position of the person providing the information).