Date posted: 28/10/2021

Joint Submission on IPSASB measurement proposals

Joint submission recommends more work on planned revisions to fair value measurement requirements

In a joint submission CA ANZ and CPA Australia have supported the IPSASB’s plans, set out in ED 76 Conceptual Framework Update: Chapter 7, Measurement of Assets and Liabilities in Financial Statements to align its definition of fair value with that in IFRS 13 Fair Value Measurement (IFRS 13). However, the submission is critical of proposals to introduce an additional “current operational value” measurement base in response to difficulties encountered when valuing assets held for their operational capacity. While the Australian and New Zealand experience of fair valuing these assets indicates that the challenges are real, our submission argues that a better solution is to develop public sector specific application guidance to accompany the IFRS 13 fair value measurement basis.

The submission also welcomes the IPSASB’s proposals in ED 78, Property, Plant and Equipment to expand the scope of IPSAS 17 Property, Plant and Equipment to cover heritage assets and include additional guidance on accounting for both heritage and infrastructure assets as this is consistent with current Australian and New Zealand practice.

It also supports the proposals in ED 79, Non-Current Assets Held for Sale and Discontinued Operations to include requirements within IPSAS for accounting for non-current assets held for sale and discontinued operations that align with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. This standard has an Australian (AASB 5) and New Zealand (now PBE IFRS 5) equivalent applying to public sector entities since both jurisdictions implemented international harmonisation in 2004.

IPSASB measurement project  

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