IPSASB proposes new guidance on financial instruments in the public sector

The International Public Sector Accounting Standards Board issued an exposure draft Tuesday offering proposed guidance for government entities around the world on how they can account for financial instruments such as monetary gold and currency.

The exposure draft, “Public Sector Financial Instruments, Amendments to IPSAS 41, Financial Instruments,” would augment the IPSASB’s existing guidance in IPSAS 41, Financial Instruments, and improves that International Public Sector Accounting Standard’s requirements by introducing guidance on monetary gold, currency in circulation, International Monetary Fund quota subscriptions, and special drawing rights.

“The topics addressed in this exposure draft are unique to the public sector and have a significant impact on government finances,” said IPSASB Chair Ian Carruthers in a statement. “The final guidance will ensure users of IPSAS-based financial statements have the information they need about these important items for accountability and decision-making purposes.”

IFAC is affiliated with the International Federation of Accountants, whose member organizations in the U.S. include the American Institute of CPAs and the Institute of Management Accountants. It also receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand.

The IPSASB is asking for comments on the exposure draft and the accompanying summary at-a-glance document by Dec. 31, 2019.

Photo courtesy of IFAC