New International Public Sector Accounting Standards (IPSAS) issued

11 March 2022
Accounting
South African Accounting Academy

The following IPSAS and amendments to IPSAS were issued:

IPSAS 43 on Leases was approved and will replace IPSAS 13 on Leases.
- The effective date is 1 January 2025.
- As IPSAS 43 aligns with IFRS 16 on Leases, the IPSASB will shift its focus to dealing with public sector specific leasing issues as part of the next phase of its project on leases.
- For lessees, IPSAS 43 introduces a right-of-use model that replaces the risks and rewards incidental to ownership model in IPSAS 13, Leases.
- For lessors, IPSAS 43 substantially carries forward the risks and rewards incidental to ownership model in IPSAS 13.

The Improvements to IPSAS, 2021 were approved. The amendments are effective from 1 January 2023, with the exception of the changes related to the Interest Rate Benchmark Reform which are applicable from 1 January 2022.

Click here to download the New IPSAS:

https://www.ipsasb.org/publications/ipsas-43-leases

Relevance to Auditors, Independent Reviewers & Accountants:

The IPSAS sets out the accounting treatment (measurement and recognition), which your clients in the public sector must comply with, and which you must assess compliance with. Any non-compliance may affect your audit opinion.
If you are compiling your public sector client’s financial statements, you need to apply IPSAS.

Relevance to Your clients:

IPSAS sets out the standards, which your clients in the public sector must comply with, in order to compile financial statements in accordance with the applicable financial reporting framework.
This new IPSAS relates specifically to Leases.

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