IPSASB Issues Package of Measurement Related Exposure Drafts


Stakeholder Comments on Exposure Draft 76, 77, 78 and 79 Sought by October 25, 2021

NEW YORK - The International Public Sector Accounting Standards Board® (IPSASB®) has released four Exposure Drafts (EDs) for public comment:
• Exposure Draft (ED) 76, Conceptual Framework Update: Chapter 7, Measurement of Assets and Liabilities in Financial Statements;
• ED 77, Measurement;
• ED 78, Property, Plant, and Equipment; and
• ED 79, Non-Current Assets Held for Sale and Discontinued Operations.

This suite of four EDs are published together to highlight for respondents the common measurement principles proposed and the ways they are applied consistently throughout the draft guidance. The four EDs address several key conceptual challenges and practical implementation issues identified by the public sector community by introducing:
• Straight-forward measurement principles, by way of a measurement hierarchy, that apply throughout IPSAS and align with the Conceptual Framework;
• Enhanced guidance clarifying the recognition and measurement of infrastructure and heritage assets that are Property, Plant, and Equipment; and
• A standard that fills a gap for assets held for sale and discontinued operations.

“This package of EDs addresses a range of conceptual challenges and practical concerns identified by our constituents,” said IPSASB Chair Ian Carruthers. “In particular, it provides guidance for the first time on how to address the problems arising from the unique characteristics of heritage and infrastructure assets. The underlying concepts and guidance proposed in this suite of EDs will underpin the IPSASB’s approach to measurement for many years. It is therefore essential the IPSASB hears the views of respondents on the guidance proposed in these EDs.”

ED 76 streamlines the measurement principles in the Conceptual Framework by eliminating unused measurement bases and enhancing focus on those that are commonly used. The ED proposes a clear measurement hierarchy to help stakeholders apply the principles in practice and aligns measurement concepts with the guidance provided in IPSAS.

ED 77 proposes new guidance in a single standard which addresses how commonly used measurement bases are applied in practice. It brings in generic guidance on fair value for the first time, and it proposes a public sector specific current value measurement basis to respond to stakeholder views that a new measurement basis is required as an alternative to fair value for assets held for their operational capacity.

ED 78 updates IPSAS 17, Property, Plant, and Equipment by adding general measurement guidance and measurement options when accounting for assets within its scope, identifying the characteristics of and heritage and infrastructure assets, and proposing new guidance on how these important types of public sector assets should be recognized and measured.

ED 79 is aligned with IFRS 5, Non-Current Assets Held for Sale and Discontinued Operations and proposes new guidance how to account for non-current assets that are classified as held for sale, when they meet specific criteria.

How to Comment
To access the Exposure Draft, its summary At-a-Glance document, and the Request for Information or to submit a comment, visit the IPSASB website, Comments are requested by October 25, 2021. The IPSASB encourages IFAC members, associates, and Network Partners to promote the availability of this Consultation Paper to their members and employees.