The International Public Sector Accounting Standards Board has proposed an update to its rules for first-time adoption of accrual basis International Public Sector Accounting Standards.
"The IPSASB encourages public-sector entities and jurisdictions around the world to apply the accrual basis of accounting through the adoption and implementation of accrual basis IPSAS," said IPSASB Chair Ian Carruthers in a statement. "The successful application of IPSAS 33 is often a cornerstone of IPSAS adoption and implementation. This ED aims to clarify the requirements of IPSAS 33 to assist entities and jurisdictions in successfully completing their IPSAS transition journey."
IPSAS 33, First-time Adoption of Accrual Basis International Public Sector Accounting Standards (IPSAS), was issued in 2015 and has been applied by a number of public sector entities during their transition to accrual basis IPSAS. The IPSASB heard from its stakeholders that:
- IPSAS 33 should be more user-friendly when applied as part of the entity's broader transition journey;
- Reliefs should be more clearly set in the entire transition process to accrual basis IPSAS; and
- Reliefs should be designed to encourage the recognition and measurement of items, contributing to compliance as early as possible.
The proposals in the Limited Scope Update Project do not propose to change the objective, scope or available exemptions in IPSAS 33. Instead, the amendments to IPSAS 33 aim to make it easier to apply and to encourage first-time adopters to comply with IPSAS in a planned way as soon as possible. Feedback received to this ED will help shape the final amendments to IPSAS 33.
