TECHNICAL INTERNATIONAL
IPSASB issues IPSAS 44 ‘Non-current assets held for sale and discontinued operations’ The International Public Sector Accounting Standards Board has issued International Public Sector Accounting Standard (IPSAS) 44 ‘Non-current assets held for sale and discontinued operations’. IPSAS 44 has an effective date of 1 January 2025. Earlier application is permitted. IPSAS 44 is based on International Financial Reporting Standard (IFRS) 5 ‘Non-current assets held for sale and discontinued operations’. The new IPSAS specifies the accounting for assets held for sale and the presentation and disclosure of discontinued operations. IPSAS 44 includes additional public sector requirements; in particular, the disclosure of the fair value of assets held for sale that are measured at their carrying amounts, when the carrying amount is materially lower than their fair value.
INTERNATIONAL ISSB delivers proposals that create a comprehensive global baseline of sustainability disclosures The International Sustainability Standards Board (ISSB), established at COP26 to develop a comprehensive global baseline of sustainability disclosures for the capital markets, has launched a consultation on its first two proposed standards. One sets out general sustainability-related disclosure requirements; and the other specifies climate-related disclosure requirements. The proposals – exposure drafts – build upon the recommendations of the Task Force on ClimateRelated Financial Disclosures (TCFD) and incorporate industry-based disclosure requirements derived from Sustainability Accounting Standards Board (SASB) Standards. When the ISSB issues the final requirements, they will form a comprehensive global baseline of sustainability disclosures designed to
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‘This standard fills a gap in the IPSAS suite by providing guidance on how to account for public sector assets that are held for sale on commercial terms,’ said IPSASB chair Ian Carruthers. ‘Adding guidance on this topic is important from a public interest perspective, as it ensures transparency and accountability when decisions to sell public sector assets have been taken.’ In July 2020, the European Financial Reporting Advisory Group (EFRAG) published a discussion paper ‘Accounting for cryptoassets (liabilities): holder and issuer perspective’. The discussion paper provided possible approaches to address the gaps in crypto-assets (liabilities) requirements. EFRAG has now reviewed the feedback received and derives recommendations for the IASB.
meet the information needs of investors in assessing enterprise value. The ISSB is working closely with other international organisations and jurisdictions to support the inclusion of the global baseline into jurisdictional requirements. The ISSB is seeking feedback on the proposals over a 120 day consultation period closing on 29 July 2022. It will review feedback on the proposals in the second half of 2022 and aims to issue the new Standards by the end of the year, subject to the feedback. The proposals have been developed in response to requests from G20 leaders, the International Organisation of Securities Commissions (IOSCO) and others for enhanced information from companies on sustainability-related risks and opportunities. The proposals set out requirements for the disclosure of material information about a company’s significant sustainability-related risks and opportunities that is necessary for investors to assess a company’s enterprise value. Later this year, the ISSB will consult on its standard-setting priorities. This consultation will include seeking
Based on the feedback received, EFRAG recommends clarifying or amending existing standards using a two-step approach. As a first step, EFRAG recommends addressing the accounting requirements for holders of crypto-assets by amending IAS 38 ‘Intangible assets’ to allow measuring crypto-assets or other intangibles within the scope of the standard at fair value through profit and loss and to develop disclosure requirements for issuers. As a second step EFRAG considers that it is important to also address issuer accounting in more detail and determine the appropriate accounting requirements for issuers, given the challenges that arise from the ambiguity on the nature of rights and obligations associated with the issuance of the novel and fastmoving crypto transactions.
feedback on the sustainability-related information needs of investors when assessing enterprise value and on further development of industrybased requirements, building on SASB Standards, which address a broad range of sustainability matters. The ISSB has also set out its plan for how its work will build on the SASB Standards and industry-based standard-setting processes. Emmanuel Faber, Chair of the ISSB, said: ‘Rarely do governments, policymakers and the private sector align behind a common cause. However, all agree on the importance of high-quality, globally comparable sustainability information for the capital markets. These proposals define what information to disclose, and where and how to disclose it. Now is the time to get involved and comment on the proposals.’ IFRS Sustainability Disclosure Standards are intended to provide a global baseline and to be compatible with jurisdiction-specific requirements, including those intended to meet broader stakeholder information needs. The ISSB’s Press Release is www.ifrs.org. ISSUE 123 | AIAWORLDWIDE.COM
