PBE Conceptual Framework Update
PBE Conceptual Framework Update amends Chapter 3 Qualitative Characteristics and Chapter 5 Elements in General Purpose Financial Reports of the Public Benefit Entities’ Conceptual Framework (‘PBE Conceptual Framework’).
The amendments are based on recent limited-scope updates to the International Public Sector Accounting Standards Board’s (IPSASB’s) Conceptual Framework, which reflect the latest international thinking on certain conceptual matters and provide additional guidance and clarifications.
The amendments include clarification of the role of prudence in the context of representational faithfulness and updates to the guidance on materiality, as well as updates to the definition of an asset and a liability and the related guidance.
Commencement and Application
The PBE Conceptual Framework is not a Standard. However, PBEs in Tiers 1, 2 and 3 may refer to it when preparing financial reports – for example, when determining how to account for a transaction not specifically covered by a Standard.
Application of PBE Conceptual Framework Update is required for periods beginning on or after 1 January 2028. Application is permitted for accounting periods that begin before 1 January 2024 but have not ended and do not end before 19 September 2024.