Before IPSAS 41 became mandatory for annual periods beginning on or after 1 January 2023, three International Public Sector Accounting Standards applied: IPSAS 28, Financial Instruments: Presentation; IPSAS 29, Financial Instruments: Recognition and Measurement; and IPSAS 30, Financial Instruments: Disclosures.
The International Accounting Standards Board, the private sector standard setting body, replaced its equivalent standard to IPSAS 29 with IFRS 9. In line with its practice, where appropriate, of maintaining consistency with IFRSs, the IPSASB published IPSAS 41. It is closely based on IFRS 9 but also includes public sector-specific guidance and illustrative examples. IPSAS 41 replaces IPSAS 29 for annual periods beginning on or after 1 January 2023 and was available for early adoption.
IPSAS 41 has a principles-based approach to classification and measurement of financial assets based on the management model and nature of the cash flows. The new forward-looking impairment model requires earlier recognition of credit losses. Hedge accounting requirements are more principles-based and aligned to common risk management activities. This two-day course provides in-depth reviews of IPSAS 41, 28 and 30.
The guidance published on some transactions which are unique to the public sector (Public Sector Specific Financial Instruments), such as monetary gold, currency in circulation and IMF Special Drawing Rights (SDRs) is also covered.
This program answers questions such as:
- What are financial instruments?
- How should financial instruments in the public sector be classified and measured?
- How to measure the fair value of financial instruments?
- How to account for and disclose concessionary loans?
- What are the recognition, measurement and accounting requirements for public sector-specific financial instruments, such as monetary gold, currency in circulation, IMF Special Drawing Rights (SDRs)?
- What are the principles for application of the expected credit loss impairment model in IPSAS 41 and how does it differ from the IPSAS 29 impairment model?
- What are the requirements for hedge accounting in IPSAS 41 and how do they differ from IPSAS 29?
- What are the requirements for transition to IPSAS 41 from IPSAS 29?
- What are the principal similarities and differences between IPSAS and IFRS in the area of financial instruments?