IPSASB eNews: July 2019

English

The IPSASB held its second meeting of 2019 from June 18-21, 2019 in Toronto, Canada.

Public Sector Specific Financial Instruments

The IPSASB unanimously approved Exposure Draft (ED 69), Public Sector Specific Financial Instruments: Amendments to IPSAS 41, Financial Instruments. ED 69 provides guidance on how to account for several instruments the IPSASB has identified as unique to the public sector.

ED 69 will be published in August 2019 with a comment period until December 31, 2019.

Please register on the IPSASB website to ensure that you receive updates when this document and others are published:https://www.ifac.org/user/register

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Improvements

The IPSASB unanimously approved ED 68,Improvements to IPSAS, 2019. The IPSASB excluded improvements related to the definition of a business and materiality in the IASB’s, Improvements to IFRS 2018. These Improvements might be considered in the future as separate narrow scope projects.
ED 68 will be published in July 2019 with a comment period until September 30, 2019.

Please register on the IPSASB website to ensure that you receive updates when this document and others are published:https://www.ifac.org/user/register

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Leases

Two guest speakers presented different perspectives on lessor accounting. The IPSASB directed the Leases Task Force to assess the rationale for departure from the lessor accounting requirements in IFRS 16,Leases. The Task Force will make recommendations to the IPSASB for consideration at the September 2019 meeting.

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Infrastructure

The IPSASB approved a revised project brief for Infrastructure Assets.  Staff will develop a list of issues for review at the September 2019 IPSASB meeting taking account of discussion at the 2017 Public Sector Standard Setters Forum together with a proposed plan for addressing them in accordance with the project roadmap.

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Heritage

The IPSASB decided that the distinction between operational and non-operational heritage assets is not useful for analyzing either the recognition or measurement of heritage assets. However, the usage of heritage assets could impact measurement. The IPSASB reviewed recognition, measurement and presentation issues raised in responses to the 2017 Consultation Paper,Financial Reporting for Heritage. Staff and the Task Force will provide a plan to the IPSASB at its September meeting, which identifies required heritage-related guidance, the potential impact on IPSAS, and prioritization and timing for delivery.

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Revenue with Performance Obligations

The IPSASB approved the core text in Exposure Draft (ED) 70, Revenue with Performance Obligations, which addresses transactions where an entity earns revenue in exchange for goods or services, and also includes the public sector performance obligation approach. The IPSASB approved a list of examples, including public sector specific examples, to illustrate the principles in ED 70 and instructed staff to continue to develop disclosures, illustrative examples, and the basis for conclusions.

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Revenue without Performance Obligations

The IPSASB confirmed that revenue that arises from transactions that are not a result of a binding arrangement shall be recognized when receivable. In September, the IPSASB will consider the relationship between performance obligations and present obligations and will further discuss when a liability of the resource recipient arises for enforceable arrangements that do not have performance obligations as defined in ED 70.

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Transfers: Expense

The IPSASB confirmed its tentative decision in March to focus on transactions where entities transfer resources to recipients, without receiving goods or services in return. The IPSASB reviewed the Government Finance Statistics (GFS) Manual, concluding that the GFS definition of a transfer encapsulated the IPSASB’s thinking, and decided to base the scope of the ED on the GFS definition. The IPSASB also discussed how to address subsidies, appropriations, levies, subsequent measurement and examples in the ED.

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Meeting Podcast
Next Meeting
  • The next meeting of the IPSASB will be in Lisbon, Portugal from September 24-27, 2019. For more information, or to register as an observer, visit the IPSASB website.

IPSASB June 2019 Meeting Podcast

English

Highlights from the IPSASB June 2019 meeting in Toronto, Canada:

  • 00:10     Welcome and introduction: John Stanford, Technical Director
  • 01:06     Chair’s meeting overview: Ian Carruthers, Chair
  • 02:52     Public Sector Specific Financial Instruments: Dave Warren, Principal
  • 03:58     Revenue with Performance Obligations: Amon Dhliwayo, Manager
  • 05:30     Revenue without Performance Obligations: Joanna Spencer, Manager
  • 06:36     Expenses: Paul Mason, Consultant
  • 08:15     Leases: Ian Carruthers, Chair
  • 11:38     Chair’s concluding comments: Ian Carruthers, Chair
  • 13:23     Closing remarks: John Stanford, Technical Director
Meeting Highlights Listen & Subscribe in iTunes

Global Ethics Board Launches eCode; Takes Usability and Accessibility of Code of Ethics to Next Level

English

The International Ethics Standards Board for Accountants (IESBA) today launched the eCode – a web-based tool that delivers the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) on a digital platform. In addition to “app-like” features and functionalities, this new platform better demonstrates the Code’s “building blocks” architecture and scalability.

The eCode represents the outcome of a strategic initiative to leverage modern technologies, including mobile access, to make the content of the Code as widely accessible and visible and as user-friendly as possible. In addition to enhanced search and navigation, the eCode includes links to non-authoritative resources that provide contextual information or explain the rationale for particular provisions in the Code.

“The eCode is an innovative response to stakeholder calls for more support for implementation,” said Dr. Stavros Thomadakis, IESBA Chairman. “Technology opens many opportunities for enhancement to the user experience, and with the eCode we have sought creative and appealing ways to do so. We firmly believe the eCode will greatly facilitate adoption, consistent application and enforcement of the Code in the public interest.”

“The launch of the eCode is timely as the Restructured and Revised Code came into effect earlier this month,” said Ken Siong, IESBA Senior Technical Director. “Technology is rapidly transforming the ways of work and how information is accessed and used. It is therefore apt to see the Code now accessible on a digital platform which users will find familiar and intuitive.”

The development of the eCode has benefited from the operational support of the International Federation of Accountants (IFAC) as well as staff support from the New Zealand External Reporting Board. The IESBA will continue its collaboration with these partners as it embarks on a second phase of this initiative to explore additional features as well as avenues to transfer the platform to adopters of the Code.

The eCode is available free-of-charge at www.IESBAeCode.org. The IESBA welcomes feedback from all stakeholders. In particular, views are sought about usability features, national adoption of the eCode platform, and areas for further improvement from firms, national standard setters, regulators and audit oversight bodies, professional accountancy organizations, investors and academia. Please email suggestions to IESBAeCode@ethicsboard.org.

Learn more about the Code, including the five fundamental principles of integrity; objectivity; professional competence and due care; confidentiality; and professional behavior on the IESBA’s website.

Click here to access tutorial-styled video on the features of the eCode.

About the IESBA
The IESBA is an independent standard-setting board that develops and issues, in the public interest, high-quality ethical standards and other pronouncements for professional accountants worldwide. Through its activities, the IESBA develops the Code of Ethics for Professional Accountants, which establishes ethical requirements for professional accountants. The structures and processes that support the operations of the IESBA are facilitated by IFAC. Please visit www.ethicsboard.org for more information, and follow us on Twitter @Ethics_Board.

IESBA June 2019 Meeting Highlights Podcast

English

00:10 - Introduction: Diane Jules, IESBA Deputy Technical Director
00:59 - Highlights & Key Developments: Stavros Thomadakis, IESBA Chairman
04:03 - Role & Mindset: Richard Fleck, IESBA Deputy Chair
04:42 - Non-Assurance Services: Richard Fleck, IESBA Deputy Chair
06:25 - Fees: Ian McPhee, IESBA Member
07:57 - eCode: Brian Friedrich, eCode Working Group Chair
10:39 - Final thoughts: Stavros Thomadakis, IESBA Chairman
12:06 - Closing Remarks: Diane Jules, IESBA Deputy Technical Director

Meeting Highlights Listen & Subscribe in iTunes
IESBA June 2019 Meeting Highlights Podcast
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