The International Public Sector Accounting Standards Board (IPSASB) opened a consultation to examine how the presentation of financial reports in public sector entities could be improved to better meet the needs of stakeholders.
In response to stakeholder feedback, the board aims to improve how effectively preparers communicate financial information reported in general-purpose financial statements to the users of their financial statements, a news release said.
The project represents a significant step toward developing a new International Public Sector Accounting Standard to replace IPSAS 1, Presentation of Financial Statements, which was first issued in 2000.
The consultation reflects how the IPSASB is modernising financial statement presentation in line with evolving global standards, according to IPSASB Chair Thomas Müller-Marqués Berger.
“Improving how public sector financial information is communicated is essential to ensuring it is useful and actually used by those it is intended to inform,” Müller-Marqués Berger said in the release. “Using reliable financial data strengthens decision-making and accountability, supports public financial management, and helps to meet the needs of legislators, oversight bodies, and the public.”
Stakeholders are invited to share their perspectives on the project before the comment period closes on 14 September.
Feedback obtained will guide the IPSASB in developing a draft of the proposed IPSAS standard to replace IPSAS 1, the release added.
IPSASB issues guidance to improve materiality judgements
The IPSASB also issued a practical, four-step approach for improving materiality judgements in financial reporting.
The board’s nonmandatory guidance aims to help preparers apply materiality more effectively when preparing financial statements, a news release said.
Information is considered material if omitting it, misstating it, or obscuring it could influence decisions or accountability, the release added. In practice, however, applying this concept can be challenging, and some stakeholders have used disclosure requirements as a checklist rather than applying professional judgement.
The guidance — adapted by the IPSASB for public sector use from the IFRS Practice Statement 2: Making Materiality Judgements — does not change existing requirements but supports a more consistent and informed application of materiality across IPSAS standards, the release said.
Exposure Draft 97, Proposed IPSAS Practice Statement, Making Materiality Judgments, is open for public comment until 28 August.
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Articles
“IFRS 18: A Fundamental Redesign of Financial Statement Presentation”, FM magazine, 5 March 2026
“How Companies Can Prepare for IFRS 18 Adoption”, FM magazine, 5 March 2026
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