IPSASB\'s Conceptual Framework

IPSASB’s Conceptual Framework Madrid 7-9 October 2015

Overview Phase 1 • Chapter 1: Role & Authority • Chapter 2: Objectives & Users of GPFRs • Chapter 3: Qualitative Characteristics • Chapter 4: Reporting Entity Phase 2 • Chapter 5: Elements in Financial Statements • Chapter 6: Recognition Phase 3 • Chapter 7: Measurement Phase 4 • Chapter 8: Presentation in GPFR

Role & Authority • Role of the Conceptual Framework Establish concepts underpinning General Purpose Financial Reporting (GPFR) and apply these in developing standards and guidance applicable to GPFR. • Authority of the Conceptual Framework Used for guidance; not in itself mandatory. • GPFR Financial reports intended to meet the needs of users who are unable to require financial reports for their specific information needs.

Scope General purpose financial reports (GPFRs) of public sector entities

Scope Other (more comprehensive information) beyond GPFS. May encompass reports that present:

• Narrative information: for example, RPG 2 Financial statement

discussion and analysis • Financial and non-financial information about the achievement

of service delivery objectives: for example, RPG 3 Reporting service performance information • Prospective financial and non-financial information about future

service delivery: for example, RPG 1Reporting on the long-term sustainability of an entity’s finances

Deferred Inflows & Outflows See discussion in the Basis for Conclusions of Chapter 5 • The Exposure Draft defined deferred inflows and outflows: • Restricted to non-exchange transactions; • Flows related to a specified future period.

• Following review of responses to ED, and IPSASB discussions,

deferred inflows are not separately defined. • Approach taken is to accept that certain economic phenomena that

do not meet the definition of any element may need to be recognized in financial statements.

Chapters 1-4: IPSASB Consequential Changes Project Changes to current IPSASs resulting from CF chapters 1-4. These changes to be published as part of the annual improvements ED. • Deletion of Appendix A, Qualitative Characteristics of Financial Reporting, from IPSAS 1 • Replacement of the terms ‘reliable’ and ‘reliability’ with the terms ‘faithfully representative’

and ‘faithful representation’ (except for recognition criteria) • Update of IPSAS 3 sections dealing with the hierarchy of sources for the selection of

accounting policies to refer to IPSASB’s Conceptual Framework (and delete reference to IASB’s Conceptual Framework

Project scope does not extend to Chapters 5-8 of the Framework. There is a separate IPSASB project brief for public sector measurement.