The International Public Sector Accounting Standards Board (IPSASB) has issued Non-Authoritative Amendments to IPSAS 41, Financial Instruments, to clarify the requirements for classifying, recognizing, and measuring a range of important public sector specific financial instruments.

This non-authoritative guidance is the final output from the IPSASB’s Public Sector Specific Financial Instruments (PSSFI) project and applies to four monetary items unique to the public sector: monetary gold, currency in circulation, International Monetary Fund (IMF) quota subscriptions, and Special Drawing Rights (SDRs).

The guidance underlines that public sector items that meet the definition of a financial asset or financial liability should be accounted for by applying existing IPSAS principles. It also clarifies the principles themselves to help improve financial information provided on public sector specific financial instruments.

“The publication of additional non-authoritative guidance in IPSAS 41, Financial Instruments, will enable preparers and users of public sector financial statements to obtain more relevant and comparable information that faithfully represents their public sector specific financial instruments,” said Ian Carruthers, IPSASB Chair. “Now more than ever, high quality financial information will help enhance government decision making as entities consider the use and issuance of these monetary items to address challenges posed by the ongoing COVID-19 pandemic.”

A Staff Q&A document will be released after this pronouncement to provide additional background information.

About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.

On June 10, 2020 the IAASB will host a webinar on the Public Consultation on Proposed Guidance: Extended External Reporting (EER) Assurance. In this 90-minute webinar Lyn Provost, IAASB Member and Chair of the EER Task Force, will explain:

The rapid rise of cryptocurrencies and assets and the enabling blockchain technology has led to significant international interest and scrutiny by businesses, accountants, regulators, governments, investors and a multitude of others.

For the accountancy profession, there is increasing focus on the accounting and control implications associated with the crypto space.

These are challenging and tough times. Our lives have changed, both personally and professionally and the world around us has come to a standstill, impacting national and global economies.

The African continent was, for a brief time, thought to have avoided the spread of the coronavirus. As the number of cases on the African continent has grown, many governments are taking steps to limit the spread of the disease, including closing of non-essential businesses, issuing lockdowns and curfews, and enacting other preventive measures to enforce social distancing.

The focus on auditor’s reports has increased in the current environment as investors and other users of financial statements seek greater transparency from entities around the impacts of Covid-19 in the financial statements, as well as greater transparency into the audit.

The pandemic environment has led to measures such as social distancing which have changed the way that auditors and their clients perform their work. The environment is also significantly changing the economic realities for many entities and the change is continuing. Auditors need to be ready to react, while ensuring they maintain a commitment to audit quality and adherence to professional standards.

The COVID-19 pandemic has far reaching implications, with many people still comprehending and adjusting both personally and professionally. For the audit profession, the increased complexities of financial statement reporting and related risks and uncertainties, coupled with a rapid shift to virtual business operations and controls, have significantly challenged the delivery of audit engagements and necessitated virtual audits. But while much has changed, the commitment to audit quality and professional standards has not.

Earlier today the International Federation of Accountants released their latest “Point-of-View” (POV): Embracing a People-Centered Profession.

The new publication explores the connection between the people in the accountancy profession, the core components of the profession (education, professional judgment, ethics, values) and the profession’s commitment to the public interest. 

“Our new POV focuses on the human aspect of our profession,” said Kevin Dancey, IFAC CEO. “Through this lens, we address issues such as gender equality, diversity (both of individuals and skills), work-life balance, mental health, and lifelong learning.  While many of the views expressed are not new, IFAC believes it is important to set out a clear message as the global voice of the accountancy profession.”

In the POV, IFAC offers insights and guidance on how firms, organizations and PAOs can better understand and appreciate the benefits and challenges of a profession made up of individuals.

IFAC also examines the relationship between a strong focus on “human capital” and the ability to attract, challenge, and retain talented people throughout their careers. 

“Events like the COVID-19 pandemic remind us that ours is a profession powered by individuals,” Dancey continued, “Individuals with their own talents, backgrounds, aspirations and challenges. Recognizing and appreciating the individual characteristics of professional accountants helps foster an environment where trust and judgment can thrive, and it is fundamental to the continued relevancy of the profession.”

To read the new POV, visit the IFAC Website here.