Skip To Content | Contact Us | About AASB | Links

AASB on Twitter AASB on LinkedIn

Breadcrumbs

Stuff

News

2 Feb. 2016

Proposed new international accounting requirements for public sector combinations and employee benefits

Public Sector Combinations

The IPSASB is proposing a new standard for public sector combinations (Exposure Draft (ED) 60 Public Sector Combinations), which includes accounting for amalgamations (e.g. mergers).Amalgamations are currently not addressed by international accounting standards (including IFRSs issued by the IASB). 

The key features of the proposals in ED 60 are:

  • if one entity gains control, there is a rebuttable presumption that the combination is an acquisition and the acquisition method of accounting is applied; and
  • amalgamations apply the modified pooling of interests method. 

Comments to ED 60 are requested by 30 June 2016

Employee Benefits

The IPSASB also proposes to update IPSAS 25 Employee Benefits to align further with IAS 19 Employee Benefits

The key amendments proposed to IPSAS 25 include:

  • removal of the corridor approach; and
  • components of defined benefit cost will be amended to include service cost, net interest and remeasurment.

Comments to ED 59 are requested by 30 April 2016

A copy of these IPSASB EDs may be downloaded from the IPSASB website via the following links:

 AASB constituents are encouraged to provide comments to the IPSASB.