Improvements to IPSAS Accounting Standards - Volume 10

 

Proposed Improvements to IPSAS Accounting Standards – Volume 10

We want to hear your feedback on the International Public Sector Accounting Standards Board’s (IPSASB) Exposure Draft 95 Improvements to IPSAS Accounting Standards – Volume 10. 

This Exposure Draft proposes improvements to several IPSAS Standards. 

Your feedback will help inform our response to the IPSASB on this Exposure Draft.

Once the IPSASB finalises the amendments, the New Zealand Accounting Standards Board (NZASB) will consider whether any amendments should be incorporated into the suite of PBE Standards for Tier 1 and Tier 2 public benefit entities (PBEs) in New Zealand. We will consult separately on any proposed amendments to New Zealand PBE Standards in due course. 

What is this consultation about and the reason for the proposals

Exposure Draft Improvements to IPSAS Accounting Standards – Volume 10 proposes several narrow-scope amendments to the International Public Sector Accounting Standards (IPSAS). The amendments are presented as a collection of unrelated amendments that impact multiple IPSAS standards.

In developing the Exposure Draft, the IPSASB reviewed recent narrow-scope amendments and improvements to IFRS Accounting Standards issued by the International Accounting Standards Board (IASB), and considered that similar amendments would also be appropriate and beneficial in the public sector context.

Overview of proposed amendments – broadly grouped into key areas

  • Clarifying requirements for the classification and measurement of financial assets (including for financial assets with features linked to environmental, social or governance goals).
  • Clarifying the accounting for the settlement of liabilities through electronic payment systems.
  • Introducing additional disclosure requirements for financial instruments with contingent features and for investments in equity instruments designated as ‘fair value through net assets/equity’.

(Amendments to IPSAS 41 Financial Instruments and IPSAS 30 Financial Instruments: Disclosures)
  • Clarifications on the accounting for contracts referencing nature-dependent electricity – including clarification of the ‘own use’ exemption’ and hedge accounting requirements in IPSAS 41 for such contracts; 
  • New disclosures to help users understand the effects of these contracts on the financial statements.

(Amendments to IPSAS 41 Financial Instruments and IPSAS 30 Financial Instruments: Disclosures)
  • Introducing disclosure requirements for supplier finance arrangements.

(Amendments to IPSAS 2 Cash Flow Statements and IPSAS 30 Financial Instruments: Disclosures)

Various other amendments clarifying or adding requirements to improve the following standards:

  • IPSAS 2 Cash Flow Statements 
  • IPSAS 4 The Effects of Changes in Foreign Exchange Rates 
  • IPSAS 30 Financial Instruments: Disclosures
  • IPSAS 33 First-time Adoption of Accrual Basis International Public Sector Accounting Standards 
  • IPSAS 35 Consolidated Financial Statements
  • IPSAS 41 Financial Instruments

Note: IPSAS 33 is not incorporated into NZ PBE Standards

Submit your feedback

We are interested in your feedback on the IPSASB Exposure Draft – particularly on the expected benefits of the proposals and any cost impacts or unintended consequences. 

In New Zealand, PBE Standards for Tier 1 and Tier 2 PBEs are primarily based on IPSAS. In addition to informing our response to the IPSASB, your feedback will support the continued development of standards that support high-quality and consistent financial reporting for the New Zealand public and not-for-profit sectors. Please note that once the IPSASB finalises its amendments, we will consult on any proposed amendments to New Zealand PBE Standards separately.

The IPSASB Exposure Draft is available on the IPSASB website here.

How to provide feedback

Comments to XRB close on Tuesday, 2 June 2026.

You may also submit your comments directly to the IPSASB by Tuesday, 30 June 2026. If you do, sending a copy of your submission to the XRB via accounting@xrb.govt.nz would be appreciated. 

All submissions will be published on the XRB website unless confidentiality is requested. If you object to the release of any information in your submission, please identify the specific parts and the reasons under the Official Information Act 1982. We reserve the right not to publish defamatory submissions.  Submissions are subject to the Official Information Act 1982 and the Privacy Act 2020. The XRB will handle personal information in accordance with these Acts.

Consultations