The International Public Sector Accounting Standards Board® (IPSASB®) has released Exposure Draft (ED) 97, IPSAS Practice Statement, Making Materiality Judgments for public comment by August 28, 2026. 

Materiality is a fundamental concept in financial reporting, functioning as a filter that ensures the financial information provided is relevant for accountability purposes and useful for decision-making. Information is considered material if omitting it, misstating it, or obscuring it could influence decisions or accountability. In practice, however, applying this concept can be challenging, and some IPSASB stakeholders have used the disclosure requirements in IPSAS® Standards as a checklist rather than applying professional judgment. 

Last year, the IPSASB conformed its definition of material. Now, the IPSASB’s proposed non-mandatory guidance in ED 97 aims to help preparers apply materiality more effectively when preparing financial statements under IPSAS Accounting Standards.  

ED 97 describes a practical, four-step approach to identifying, assessing, organizing, and reviewing potential material information. The guidance does not change existing requirements but supports more consistent and informed application of materiality across IPSAS Standards. 

“Materiality helps entities determine what information to include in or exclude from financial statements, and our proposed guidance in ED 97 provides a systematic approach to making such judgments,” said IPSASB Chair Thomas Müller-Marqués Berger. “We want to hear from our stakeholders if this guidance can help them make judgments more confidently and consistently in practice, and where additional clarity may be needed.” 

The guidance was adapted by the IPSASB for public sector use from the IFRS® Practice Statement 2: Making Materiality Judgements. The IPSASB encourages input from preparers, auditors, and other stakeholders to ensure the final IPSAS Practice Statement reflects real-world application in public sector financial reporting. 

Access ED 97, its At-a-Glance summary, and submit a comment. 

About the IPSASB 

The International Public Sector Accounting Standards Board (IPSASB®) works to improve public sector financial reporting worldwide through the development of IPSAS® Accounting Standards, IPSASB SRS™ Standards, and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS Standards and IPSASB SRS Standards and promotes the adoption and implementation of these to enhance the quality and consistency of practice throughout the world and strengthen the transparency and accountability of public sector finances and sustainable development. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and The World Bank. 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. 

The International Public Sector Accounting Standards Board (IPSASB) released a Consultation Paper (CP) seeking views on strengthening how financial information is presented in public sector financial statements. The project represents a significant step toward developing a new International Public Sector Accounting Standard (IPSAS Standard) to replace IPSAS 1, Presentation of Financial Statements, which was issued in 2000.

In response to stakeholder feedback, the IPSASB aims to improve how effectively preparers communicate financial information reported in general purpose financial statements to the users of their financial statements.

“This consultation reflects how the IPSASB is modernizing financial statement presentation in line with evolving global standards. Improving how public sector financial information is communicated is essential to ensuring it is useful and actually used by those it is intended to inform,” said IPSASB Chair Thomas Müller-Marqués Berger. “Using reliable financial data strengthens decision making and accountability, supports public financial management, and helps to meet the needs of legislators, oversight bodies, and the public.”

The IPSASB invites stakeholders to share their perspectives on how financial statement presentation can be improved to better meet their needs. Feedback to the CP will guide the IPSASB in developing a draft of the proposed IPSAS Standard to replace IPSAS 1.

Access the CP, Presentation of Financial Statements and supplementary materials. Submit a comment by September 14, 2026.

About the IPSASB

The International Public Sector Accounting Standards Board (IPSASB®) works to improve public sector financial reporting worldwide through the development of IPSAS® Accounting Standards, IPSASB SRS™ Standards, and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS Standards and IPSASB SRS Standards and promotes the adoption and implementation of these to enhance the quality and consistency of practice throughout the world and strengthen the transparency and accountability of public sector finances and sustainable development. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and The World Bank. 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.

The International Public Sector Accounting Standards Board® (IPSASB®) has issued Exposure Draft (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) for public comment. 

These proposals form part of the IPSASB’s ongoing work to maintain high-quality, globally relevant public sector accounting standards.  

Both EDs reflect the IPSASB’s practice of reviewing relevant developments from the International Accounting Standards Board (IASB), which sets accounting standards for the private sector. The IPSASB considers if the private sector guidance is relevant to the public sector and specifically updates the guidance for its use when appropriate and further refines considering stakeholder feedback. 

ED 95 proposes minor improvements to accrual basis IPSAS Standards regarding financial instruments, foreign exchange, and consolidated financial statements, as well as 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.  

Public feedback will shape the final improvements to IPSAS Standards. Please submit, in English. Comments for both EDs are due by June 30, 2026. 

Submit your comments to ED 95 and ED 96. 

About the IPSASB

The International Public Sector Accounting Standards Board (IPSASB®) works to improve public sector financial reporting worldwide through the development of IPSAS® Accounting Standards, IPSASB SRS™ Standards, and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS Standards and IPSASB SRS Standards and promotes the adoption and implementation of these to enhance the quality and consistency of practice throughout the world and strengthen the transparency and accountability of public sector finances and sustainable development. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and The World Bank. 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.