IPSASB update Ian Carruthers

Transcription

1 IPSASB update Ian Carruthers IPSASB Chair EPSAS Working Group, Paris 7 th July 2016 Page 1 Proprietary and Copyrighted Information

2 IPSASB update Session outline IPSASB Strategic Objective 2015 new standards and consultations New governance and advisory arrangements Work plan 2016 onwards Social Benefits Revenue and Non-Exchange Expenditure Page 2 Proprietary and Copyrighted Information

3 IPSASB Strategic Objective onwards Strengthening Public Financial Management and knowledge globally through increasing adoption of accrual-based IPSASs by: Developing high-quality financial reporting standards Developing other publications for the public sector Raising awareness of the IPSASs and the benefits of their adoption Page 3 Proprietary and Copyrighted Information

4 Consultations and Exposure Drafts 2015 Final pronouncements approved to date during 2016: Minor Improvements Applicability of IPSASs Update of IPSAS 25 Employee Benefits IPSAS 39 Responses currently being analysed: Social Benefits CP Public Sector Combinations ED 60 (comments closed June 30th) Exposure Draft still open for comment: Update of Cash Basis IPSAS ED 61 (July 31st) Page 4 Proprietary and Copyrighted Information

5 Governance and Advisory Arrangements (1) Public Interest Committee (PIC) Oversee governance & standard-setting activities World Bank, IMF, OECD, INTOSAI co-chairs 3 meetings to date Reviewed and advised on: Appointments of: IPSASB Chair & Inaugural CAG Chair Members: IPSASB & CAG IPSASB & CAG Terms of Reference IPSASB due process Final Standards due process application: Applicability of IPSASs & Improvements to IPSASs 2015 Page 5 Proprietary and Copyrighted Information

6 Governance and Advisory Arrangements (2) Consultative Advisory Group (CAG) Advise IPSASB on key project issues, strategy, work plan Inaugural Chair & Members appointed Composition: 50% Preparers/Users Audit organizations Including Forum of Firms Representative Economic development and regulatory organizations Regulatory organizations Professional Accountancy Bodies Individuals Initial meeting June 2016 in Toronto, Canada Page 6 Proprietary and Copyrighted Information

7 Current work programme Key projects Project Social Benefits Public sector specific IFRS convergence Revenue & Non-Exchange Expenditure Financial Instruments Heritage Public Sector Measurement (starting Autumn) Infrastructure Assets (starting Autumn) Leases (just started) Page 7 Proprietary and Copyrighted Information

8 Social Benefits Narrower scope of current project Projects Social Benefits Non-Exchange Expenses IPSAS 25 Update Social Assistance Social Security Other Transfers In Kind Collective Goods and Services Employment Related Social Insurance Page 8 Proprietary and Copyrighted Information

9 Social Benefits CP responses on scope and definitions Do you agree with the proposed scope? Do you agree with the definitions? Disagree, 9 Did not Comment, 3 Agree, 18 Disagree, 9 Did not Comment, 3 Agree, 14 Partially Agree, 6 Partially Agree, 10 Page 9 Proprietary and Copyrighted Information

10 Social Benefits Recognition and measurement options Option 1 Option 2 Option 3 Obligating Event Approach Social Contract Approach Insurance Approach Page 10 Proprietary and Copyrighted Information

11 Social Benefits Option 1 potential recognition points Earliest Recognition Point Latest Recognition Point Key Participatory Events Occur Some but not all eligibility criteria may be met Eligibility Criteria Initially Met Eligibility Criteria Met to Receive Next Benefit Eligibility Criteria Met to Receive Next Benefit Claim Approved Eligibility Criteria Met to Receive Next Benefit Claim Approved Payment Date Arrived Key Participatory Events Threshold Eligibility Criteria Eligibility Criteria Met to Receive Benefit Approved Claim Enforceable Claim Requirements to satisfy ongoing eligibility criteria (including revalidation) affect measurement but not recognition Requirements to satisfy ongoing eligibility criteria (including revalidation) affect both recognition and measurement Page 11 Proprietary and Copyrighted Information

12 Revenue and Non-Exchange Expenditure Single CP to address need for common approach between Non-Exchange Revenue and Expenditure (e.g. grants) Address issues identified with application of IPSAS 23 Assessment of extent that IFRS15 performance obligation approach can be applied to public sector revenues Key debate about application of CF Elements definitions Non-exchange expenses outside Social Benefits project e.g. Education, Health and Defence expenditure Consistency / links with Social Benefits and existing IPSASs Page 12 Proprietary and Copyrighted Information

13 IPSAS 23 Implementation issues Global standard high level Implementation Guidance on main tax types more detail required? Subsequent measurement Transfers: Stipulations - time requirements Capital grants Services in kind valuation Exchange/non-exchange classification Page 13 Proprietary and Copyrighted Information

14 Exchange / Non-Exchange options Current classification Exchange Non-Exchange Potential re-classification Performance Obligation Non-Performance obligation Transaction categories Category A Category B Category C Converged IFRS 15 Public Sector Performance Obligation Approach IPSAS 23 based standard Description (in summary) Sale of goods or services on commercial terms Satisfaction of performance obligations but does not include all the characteristics of a commercial based transaction No performance obligations Example e.g. fees from professional services provided at market rates e.g. fees in exchange for the delivery of subsidised health services e.g. taxes, transfers, grants with no restrictions over use Page 14 Proprietary and Copyrighted Information

15 Questions, Discussion & Further Information Visit our webpage Or contact us by IPSASB Chair: iancarruthers@ipsasb.org Technical Director: johnstanford@ipsasb.org Page 15 Proprietary and Copyrighted Information