15 October 2015

IPSASB´s ED 57, Impairment of Revalued Assets, and ED 58, Improvements to IPSAS 2015

ED 57 proposes to bring property, plant and equipment, and intangible assets on the revaluation model within the scope of the IPSASB’s two standards on impairment―IPSAS™ 21, Impairment of Non-Cash-Generating Assets, and IPSAS 26, Impairment of Cash-Generating Assets. These changes seek to provide users with relevant information on impairments to these assets. They also clarify that an impairment to one or more individual assets within a class of property, plant, and equipment does not necessitate a revaluation of the entire class to which that impaired asset belongs.

ED 58 proposes minor changes as follows:

• Consequential amendments arising from the first four chapters of the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities;
• General improvements to International Public Sector Accounting Standards™;
• Improvements to increase consistency with Government Finance Statistics reporting guidelines; and
• Improvements to maintain convergence with International Financial Reporting Standards.

This is the first IPSASB Improvements project to consider broader improvements, rather than focusing solely on those to maintain convergence with IFRS.

“Although the changes proposed in these EDs are minor, they address concerns directly raised by our stakeholders,” said IPSASB Chair Andreas Bergmann. “As an increasing number of jurisdictions adopt IPSAS, it is important that we respond to the issues they identify. We look forward to receiving constituents’ views on these proposals.”

Full press release

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