The International Public Sector Accounting Standards Board (IPSASB) has updated its public sector accounting standards to align with IPSAS 46 – Measurement.
IPSAS 46, issued in 2023, introduced ‘current operational value’ as a basis for measuring the assets used to deliver services rather than generate cash.
Other standards – including IPSAS 12, IPSAS 21 and IPSAS 3 – have now been updated to incorporate current operational value measurements.
IPSASB chair Ian Carruthers stated: “These changes aim to improve how governments and public sector entities report the value of assets they use to deliver services. The pronouncement offers an integrated approach to valuation, guiding entities in measuring the current value of inventories and determining impairment in the public sector.”
The updates to the standards are effective from 1 January 2028, with earlier application permitted.