This online IPSAS training is being delivered live in 4 individual sessions which run on consecutive days. The sessions will run each day from 13:00 – 17:00 London (UK).
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This course provides an in-depth review of IPSAS 41, Financial Instruments published by the International Public Sector Accounting Standards Board (IPSASB) in 2018. IPSAS 41 replaces IPSAS 29, Financial Instruments: Recognition and Measurement for periods beginning on or after 1 January 2023.
There are currently three International Public Sector Accounting Standards that must be applied for accounting and disclosure of financial instruments by public sector entities: IPSAS 28, Financial Instruments: Presentation; IPSAS 29, Financial Instruments: Recognition and Measurement; and IPSAS 30, Financial Instruments: Disclosures.
The three IPSASs are primarily drawn from the International Accounting Standards Board’s (IASB) standards. The IASB replaced IAS 39, its equivalent standard to IPSAS 29, with IFRS 9 from 2018. 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. It addresses a number of public sector-specific issues, including financial guarantee contracts provided for nil or nominal consideration and concessionary loans.
Compared to IPSAS 29, IPSAS 41 has a logical, 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 and more timely recognition, and ongoing assessment of credit losses. The hedge accounting requirements are more principles based and aligned to common risk management activities. This course provides an explanation of the requirements for accounting, reporting and disclosures for financial instruments in clear, simple language, illustrated with financial statements and other real-world examples.
The course considers both requirements that will be applicable to most public entities; such as identifying which assets and liabilities and off balance sheet items are in scope of the standards and their recognition and measurement, as well as considering more advanced issues; such as the use of derivatives and hedge accounting. It also examines the extensive disclosure requirements required in IPSAS 30 as a result of IPSAS 41 and how these can be practically implemented considering the scale and complexity of different reporting entities.
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, IMF quota subscriptions and 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 in IPSAS 41 and IPSAS 29?
- 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 quota subscriptions and special drawing rights (SDRs)?
- What are the principles for application of the expected credit loss impairment model in IPSAS 41 and how is it different to the IPSAS 29 impairment model?
- What are the requirements for hedge accounting in IPSAS 41 and how are they different from IPSAS 29?
- What are the requirements for transition to IPSAS 41 from IPSAS 29?
- What will be the impact of IPSAS 41 and other possible changes in IPSAS?
- What are the principal similarities and differences between IPSAS and IFRS in the area of financial instruments?