IPSASB proposes tweaks to public sector accounting standards

The International Public Sector Accounting Standards Board proposed a set of narrow changes in its standards for government entities, mainly to align them with recent guidance for businesses from the International Accounting Standards Board.

Processing Content

The IPSASB issued two exposure drafts Thursday — ED 95, Improvements to IPSAS Accounting Standards – Volume 10, and ED 96, Definition of an Operation and Recognition of Acquired Liabilities and Contingent Liabilities (Amendments to IPSAS 40) — and is asking for comments from the public. 

Both documents reflect the IPSASB’s practice of reviewing relevant developments from the IASB, which sets accounting standards for the private sector, and considering whether it’s relevant to the public sector, based on stakeholder feedback. 

ED 95 proposes minor improvements to accrual basis IPSAS standards for financial instruments, foreign exchange and consolidated financial statements, while also making some editorial clarifications.  

ED 96 proposes amendments to the definition of an operation and to the recognition of certain liabilities in IPSAS 40, Public Sector Combinations, which provides guidance on the acquisition or amalgamation of public sector operations.  

Comments on both exposure drafts are due June 30, 2026.