We made a joint submission with CPA Australia on the IPSASB’s Consultation Paper that proposes a single standard containing generic guidance on the most commonly used measurement bases. The Consultation Paper also takes a new approach by including an illustrative Exposure Draft.
Whilst we believe there are some benefits that could arise from the project, it is unclear what the problem is that the IPSASB is trying to solve. We are not convinced that the proposals set out a sufficiently robust case for why a general measurement standard is needed. Furthermore, some of the proposals appear be changes to the underlying principles which would be more appropriately addressed through a review of the Conceptual Framework.
In our submission we suggest the IPSASB revisit the project rationale and objectives and target each objective systematically. We also encourage the IPSASB to consider the AASB’s fair value measurement in the public sector project which may inform the IPSASB’s deliberations as the AASB is addressing specific issues raised by public sector constituents.