The IPSASB said in its CP, Public Sector Specific Financial Instruments, that its current standards do not provide guidance on how to account for the monetary items.
The CP addresses three main topics relating to public sector financial instruments: currency in circulation, monetary gold, and International Monetary Fund (IMF) quota subscription and special drawing rights (SDRs).
In attempting to define currency in circulation, the IPSASB seeks in the CP to address the issue of whether the issuance of currency gives rise to a present obligation.
On the topic of monetary gold, the IPSASB attempts to consider which gold assets meet the proposed definition of monetary gold and the appropriate measurement bases for initial and subsequent measurement of such assets.
As for IMF quota subscription and SDRs, the CP puts forward “IPSASB’s view of the appropriate recognition and measurement of the IMF Quota Subscription, SDR holdings, and SDR allocations”.
IPSASB chair Ian Carruthers said the CP is the first step in developing consistent financial reporting for public sector specific financial instruments.
“The topics in this consultation paper are critically important because users need better information to evaluate the impact of these significant items on government finances,” he said.
“We look forward to receiving constituents’ views on the accounting approaches identified for each topic.”
The IPSASB has opened the CP for comments and feedback until 31 December.
Moral hazards in member bodies
By Chris Hooper, Accodex
Process standardisation trumps automation
By Mark Sands, BOARD Australia
Tips for mergers and acquisitions of accounting fees
By Jamie Davison, Carbon Group