The International Public Sector Accounting Standards Board (IPSASB) has today released for comment Exposure Draft (ED) 74, IPSAS 5, Borrowing Costs – Non-Authoritative Guidance. The ED proposes the addition of non-authoritative guidance to IPSAS 5.

The proposed non-authoritative guidance would add implementation guidance and illustrative examples to IPSAS 5. The new material proposed in ED 74 would clarify how the existing principles for when borrowing costs can be capitalized should be applied in various regularly encountered public sector contexts. No amendments are proposed to the authoritative material in IPSAS 5.

“We undertook this project to address the practical challenges constituents identified in determining which borrowing costs can be capitalized and when,” said IPSASB Chair Ian Carruthers. “This is an important step in enhancing comparability between those public sector entities that capitalize borrowing costs.”

How to Comment
To access the Exposure Draft and its summary At-a-Glance document, or to submit a comment, visit the IPSASB website, www.ipsasb.org. Comments on the Consultation Paper are requested by March 1, 2021. The IPSASB encourages IFAC members, associates, and regional accountancy organizations to promote the availability of this Consultation Paper to their members and employees.

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.

The SMP Advisory Group has issued a response to the IAASB's Proposed International Standard on Auditing 600 (Revised): Special Considerations -- Audits of Group Financial Statements (Including the Work of Component Auditors).

Earlier today, the IESBA’s Technology Task Force launched two online surveys with questions seeking stakeholder feedback to inform its consideration of issues related to two key recommendations in the February 2020 Phase 1 report of its Technology work stream, Technology Working Group Phase 1 Final Report. The topics addressed by these two recommendations are:

• Technology and complexity in the professional environment; and
• The impact of technology on auditor independence.

Stakeholder responses to the surveys will help guide the IESBA’s consideration of next steps in relation to those two topics at its December 2020 Board meeting.

The IESBA is seeking views and input from all categories of stakeholders, including investors and other users of financial statements, the corporate governance community, the regulatory and audit oversight community, preparers, firms, national standard setters, professional accountancy organizations, academics and others. Don’t miss this unique opportunity to contribute to international standard setting.

How to Participate in the Survey

Click on the links below to respond to each survey by November 10, 2020.

1. Technology and complexity in the professional environment; and
2. Impact of Technology on Auditor Independence.

If you are experiencing difficulty in submitting your completed questionnaire online, please contact KamLeung@ethicsboard.org.

Alternatively, you may also complete the PDF versions of the survey by November 10, 2020 and e-mail them to KamLeung@ethicsboard.org. Click below to access these versions.

• PDF versions of technology surveys

About the IESBA

The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA serves the public interest by setting ethics standards, including auditor independence requirements, which seek to raise the bar for ethical conduct and practice for all professional accountants through a robust, globally operable International Code of Ethics for Professional Accountants (including International Independence Standards).

The IESBA believes a single set of high-quality ethics standards enhances the quality and consistency of services provided by professional accountants, thus contributing to public trust and confidence in the accountancy profession. The IESBA sets its standards in the public interest with advice from the IESBA Consultative Advisory Group (CAG) and under the oversight of the Public Interest Oversight Board.

The International Ethics Standards Board for Accountants (IESBA) is pleased to announce new appointments and re-appointments to take effect on January 1, 2021.

The four new Board Members are:

• Ms. Saadiya Adam (Senior Professional Manager: Standards, Independent Regulatory Board for Auditors (IRBA), South Africa)
• Prof. Vania Borgerth (Retired accountant and a PhD Candidate in Accountancy, Fucape Business School, Brazil)
• Mr. Sung-Nam Kim (Non-partner advisor, EY Korea, Korea)
• Mrs. Yaoshu Wu (Director of Professional Standards and Technical Guidance Dept., the Chinese Institute of Certified Public Accountants (CICPA), China)

The following three current Board Members will continue their service for a second term:

• Mr. Brian Friedrich (Principal, friedrich & friedrich corp., Canada)
• Prof. Winifred Kiryabwire (Associate Professor of Law, Makerere University, Uganda)
• Prof. Jens Poll (Audit Committee Chair, Non-Executive/Supervisory Board Member, Germany)

"I welcome such an accomplished group of volunteers to the IESBA,” said Stavros Thomadakis, IESBA Chairman. “As an international standard setter, it is critical we incorporate voices from different cultures and professional backgrounds. Our new Board makeup expands our reach in both areas, and advances our commitment towards gender parity.”

The IESBA also welcomes the appointment of Caroline Lee from Singapore as Deputy Chair for 2021. Ms. Lee has over 30 years of experience in the public accountancy profession and is a partner at KPMG and Asia Pacific Head of Quality & Risk Management. She is also a member of the Singapore Public Accountants Oversight Committee’s Ethics Committee. She has been a Board member of IESBA since January 2017 and of its Planning Committee since January 2019, and has played an instrumental role on its projects to revise the fee-related provisions and Part 4B of the International Code of Ethics for Professional Accountants (including International Independence Standards).

“Ms. Lee has shown an unwavering commitment to the IESBA and to the development of international standards in the public interest,” said Dr. Thomadakis. “I value her insights, expertise and strategic thinking.  I look forward to working together with Caroline in her new role. I also want to thank our departing Deputy Chair Richard Fleck, who has been my close associate and friend and who has contributed decisively and generously to IESBA’s most ambitious projects such as NOCLAR, Long Association, Role and Mindset, and Non-Assurance services.”

About the Nominating Committee

The Nominating Committee makes recommendations to the International Federation of Accountants® (IFAC®) Board and Public Interest Oversight Board (PIOB) on the composition of the IAASB and IESBA.

The Nominating Committee is guided in its work by the principle of selecting the most suitable person for the position. In doing so, it endeavors to balance the nominee’s abilities and professional qualifications with the representational needs of the board, such as broad regional and professional representation and gender balance. The PIOB representative observes the selection process for IAASB and IESBA memberships with regular updates to the PIOB. To learn more about the Nominating Committee, visit their website here.

About the IESBA

The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA serves the public interest by setting ethics standards, including auditor independence requirements, which seek to raise the bar for ethical conduct and practice for all professional accountants through a robust, globally operable International Code of Ethics for Professional Accountants (including International Independence Standards).

The IESBA believes a single set of high-quality ethics standards enhances the quality and consistency of services provided by professional accountants, thus contributing to public trust and confidence in the accountancy profession. The IESBA sets its standards in the public interest with advice from the IESBA Consultative Advisory Group (CAG) and under the oversight of the Public Interest Oversight Board (PIOB).