IPSASB publishes three new standards for accounting and disclosure of financial instruments

21 January 2010

The new International Public Accounting Standards cover presentation (IPSAS 28), recognition and measurement (IPSAS 29) and disclosure (IPSAS 30) of financial instruments. These new IPSASs provide a coherent set of requirements that enhance accountability for financial instruments.

The International Public Sector Accounting Standards Board (IPSASB) has published three new standards that cover all aspects of the accounting for, and disclosure of, financial instruments: International Public Sector Accounting Standard (IPSAS) 28, Financial Instruments: Presentation; IPSAS 29, Financial Instruments: Recognition and Measurement; andIPSAS 30, Financial Instruments: Disclosures. They fill a significant gap in the IPSASB literature.

 
"These new IPSASs provide a coherent set of requirements that enhance accountability for financial instruments in the public sector; this need was reinforced by the global financial crisis, and the scale and range of interventions made by governments," states Andreas Bergmann, who became Chair of the IPSASB on January 1 2010.
 
The three new IPSASs are primarily drawn from the International Accounting Standards Board's standards, but address a number of public sector-specific issues:
These IPSASs address some key public sector issues, including financial guarantee contracts provided for nil or nominal consideration and concessionary loans.
"The IPSASB recognizes the need to closely monitor global developments in the accounting for financial instruments and to evaluate such changes promptly in a public sector context," says Mr. Bergmann, adding that, together with the soon-to-be-issued IPSAS on intangible assets, IPSASs 28-30 represent the substantial attainment of IPSAS convergence with IFRSs.
 
Press release

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