Exposure Drafts regarding Consolidation, Joint arrangements and Related Requirements Issued by IPSASB
A series of 5 exposure drafts dealing with accounting treatment of interests in other entities has been published by the International Public Sector Accounting Standards Board (IPSASB). The exposure drafts are based on the accounting standards issued by the International Accounting Standards Board (IASB) that deal with the consolidation, the equity method, joint ventures, separate and consolidated financial statements and disclosures. IPSASB has recommended a number of changes in these standards to tailor them for the needs of public sector.
These exposure drafts follow the Memorandum of Understanding (MoU) between the IFAC and IASB and the practices of IPSASB in developing International Public Sector Accounting Standards (IPSASs). They are based on the IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interest in Other Entities, IAS 27 Separate Financial Statements, and IAS 28 Investing in Associates and Joint Ventures.
IPSASB has highlighted the following reasons for the amendments in IFRSs for the development of these exposure drafts:
· To reflect the terminology and vocabulary used in public sector
· To reflect the differences existing between IFRS and IPSAS
· To develop additional guidance for dealing with public sector issues
· To provide guidance on when the definition of "control" and "power" may be met in the context of public sector
· To provide guidance when an investment entity is exempt from consolidation
· To modify the disclosure requirements
· To amend the method of measurement of investment in a joint venture or an associate
These exposure drafts will replace IPSAS 6 Consolidated and Separate Financial Statements, IPSAS 7 Investments in Associates and IPSAS 8 Interests in Joint Ventures. These IPSASs were based on previous accounting standards of IASB. The exposure drafts eliminate the option of using alternative treatments in circumstances where interest was "temporary".
These exposure drafts took into consideration the proposals previously issued by the Australian Accounting Standards Board. European Public Sector Accounting Standards (EPSAS) will be affected by these exposure drafts because they are based on IPSAS.
Start free ReadyRatios
reporting tool now!
Last Accounting News
- IFRS Foundation Publishes IFRS Taxonomy 2018
- IASB Urged to Improve Standards-setting Processes
- FSB Encourages Insurers to Act on the New Insurance Standard
- IFRS Foundation Trustees and the IASB Meets with the Japanese Stakeholders in the Wake of More Japanese companies Adopting IFRS Standards
- IASB Replaces IFRS 4 with the Issuance of a New Standard on Insurance Accounting
- IASB has Proposed Minor Amendments to IFRS 9 Relating to the Measurement of Financial assets with Prepayment Feature
- AAT Has Been Approved as an Apprentice Assessment Organization