IPSASB Achieves Goal of Substantial Convergence with IFRSs
The IPSASB has accomplished its strategic goal of achieving substantial convergence by December 31, 2009 with the International Financial Reporting Standards (IFRSs), dated December 31, 2008. During its December 8-11 meeting in Rome a series of new or improved standards were approved.
Three of these new International Public Sector Accounting Standards (IPSASs) deal with financial instruments: -
• IPSAS 28, Financial Instruments: Presentation
• IPSAS 29, Financial Instruments: Recognition and Measurement
• IPSAS 30, Financial Instruments: Disclosures
The effective date of these three standards is for annual financial statements covering periods beginning on or after January 1, 2013.
In the current global economic environment, when governments are increasingly raising debt through the capital markets as a result of their financial interventions in the private sector, the need for well-developed financial instruments standards is urgent and will enhance transparency.
The IPSASB also approved for issue, IPSAS 31, Intangible Assets. The effective date of this standard is for annual financial statements covering periods beginning on or after April 1, 2011.
In addition, the IPSASB approved for issue Improvements to IPSASs, which includes amendments to converge existing IPSASs with the relevant IFRSs of the International Accounting Standards Board (IASB) and arise from improvements adopted by the IASB in May 2008. The effective date for this standard is for annual financial statements covering periods beginning on or after January 1, 2010.
The IPSASB issued another converged standard earlier this month - IPSAS 27, Agriculture.
The new standards will be available to download free of charge from the IFAC website (web.ifac.org/publications) in January 2010.