The International Public Sector Accounting Standards Board (IPSASB) has released amendments to International Public Sector Accounting Standards (IPSAS) to reflect the application of IPSAS 46, Measurement. 

IPSAS 46 introduced a new valuation basis for the public sector called current operational value.  

The approach is designed to reflect the value of assets used for delivering services rather than generating cash.

Following its release, the IPSASB reviewed how this measurement could apply across existing IPSAS Standards. 

The IPSASB, which develops accrual-based accounting standards for governments and other public sector organisations worldwide, issued a draft of its proposals in August 2024.  

Feedback from stakeholders was incorporated to shape the final standard, which has now been released.  

Amendments include introducing current operational value in IPSAS 12, Inventories and IPSAS 21, Impairment Non-Cash Generating Assets.  

Additionally, a definition of accounting estimates has been added to IPSAS 3. 

The amendments to the IPSAS Standards will take effect from 1 January 2028, with earlier application permitted.  

IPSASB chair Ian Carruthers said: “These changes aim to improve how governments and public sector entities report the value of assets they use to deliver services. The pronouncement offers an integrated approach to valuation, guiding entities in measuring the current value of inventories and determining impairment in the public sector.   

“These amendments give public sector financial statement users more relevant, faithfully representative measurement information through broader application of public sector specific measurement guidance.”  

In May, the IPSASB published the IPSAS Exposure Draft 93 for public comment.  

The draft seeks to align the materiality definition across the IPSASB’s financial reporting literature, ensuring consistency with the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities and IPSAS Standards.