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20 February 2014

FEE comments on IPSASB's consultations on EDs 50, 51 and 52


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FEE replied to the IPSASB's public consultation on: ED 50, Investments in Associates and Joint Ventures; ED 51, Joint Arrangements; and ED 52, Disclosure of interests in other entities.


ED 50 Investments in Associates and Joint Ventures 

FEE has reviewed the changes in terminology between this ED and its donor standard, IAS 28, and agrees that the revised terminology better represents the position of public sector bodies. FEE also agrees with the inclusion of additional commentary in the ED to clarify the applicability of the proposed Standard to accounting by public sector entities.

FEE has also considered the IPSASB’s decision to replace references to IFRS 9 Financial Instruments contained in IAS 27 with references to the IPSASs dealing with financial instruments. As the IPSASB has not yet considered the applicability to the public sector of this standard, and also in view of the fact that the IASB’s proposed amendments to this standard are not complete, FEE agrees with the IPSASB’s decision to remove references to it in this ED.

In accordance with ED 49 Consolidated Financial Statements, FEE agrees with the IPSASB’s decision not to include a temporary control exemption in this standard for the same reasons as quoted in our response letter to that ED.

FEE notes that there is no formal definition of “quantifiable ownership interest” contained in the ED. FEE believes that a formal definition of this term would enhance understanding of the standard and increase comparability between jurisdictions. For this same reason, FEE also believes that the inclusion of some explanatory paragraphs giving examples of situations where a quantifiable ownership exists and where it does not exist would assist in the consistent interpretation of this standard.

Full comment letter


ED 51 Joint Arrangements

FEE has reviewed the changes in terminology between this ED and its donor standard, IFRS 11, and agrees that the revised terminology better represents the position of public sector bodies. FEE also agrees with the inclusion of additional commentary in the ED to clarify the applicability of the proposed Standard to accounting by public sector entities.

FEE agrees that joint arrangements should be classified as joint ventures where the parties that have joint control have rights to the net assets of the arrangement. FEE also agrees that joint arrangements should be classified as joint operations where the parties that have joint control have rights to the assets, and obligations for the liabilities, of the arrangement. FEE believes that these two classifications adequately represent the types of arrangements undertaken by bodies in the public sector.

Full comment letter


ED 52 Disclosure of interests in other entities

FEE has reviewed the changes in terminology between this ED and its donor standard, IFRS 12, and agrees that the revised terminology better represents the position of public sector bodies. FEE also agrees with the inclusion of additional commentary in the ED to clarify the applicability of the proposed Standard to accounting by public sector entities.

FEE agrees with the proposed disclosures in the draft Standard and FEE has not identified any further disclosures that FEE feels would be useful for users of the financial statements.

Full comment letter



© FEE


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