News
IPSASB Proposes Important Limited Scope Updates to its Conceptual Framework
24-Mar-2022
Stakeholder Comments on Exposure Draft 81
NEW YORK - The International Public Sector Accounting Standards Board® (IPSASB®) released Exposure Draft (ED) 81, Conceptual Framework Update: Chapter 3, Qualitative Characteristics and Chapter 5, Elements in Financial Statements.
ED 81 is the second exposure draft resulting from the limited scope project to revise the Conceptual Framework in specified areas. ED 81 proposes updates to the chapters of the Conceptual Framework dealing with the attributes of financial information that make financial reporting useful-qualitative characteristics-and the building blocks of financial statements-elements.
In developing its proposals, the IPSASB has considered the Board’s experience in applying the Framework to the development and maintenance of International Public Sector Accounting Standards (IPSAS), as well as recent developments in international thinking about conceptual issues.
“Since its publication in 2014 the Conceptual Framework has been the cornerstone of IPSASB’s global standards delivery activity,” said IPSASB Chair Ian Carruthers. “The ED 81 proposals are intended to address issues that have emerged in the Framework’s application in practice, so that it remains central to global public sector financial reporting.”
The ED 81 proposals include:
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Clarifying the role of prudence in public sector financial reporting;
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Revised definitions of an asset and a liability;
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Clarifying what constitutes a transfer of resources when determining whether an entity has a liability; and
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Restructuring guidance on liabilities to improve clarity for users of the Framework.
The IPSASB welcomes the views of respondents on the proposed amendments to the Conceptual Framework.
How to Comment
To access the Exposure Draft, its summary At-a-Glance document, or to submit a comment, visit the IPSASB website. Comments are requested May 31, 2022. The
IPSASB encourages IFAC members, associates, and Network Partners to promote the availability of this Exposure Draft to their members and employees.
Source: www.ifac.org