IPSASB: Amendments to Standards Following IPSAS 46 Measurement

Posted 25 September 2025 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The International Public Sector Accounting Standards Board (IPSASB®) has released Amendments to IPSAS Standards as a Result of the Application of IPSAS 46, Measurement, which updates existing standards to align with the new measurement framework.

The amendments, which become effective for annual periods beginning on or after 1 January 2028, primarily integrate the “current operational value” measurement basis. This public sector-specific approach is designed to reflect the value of assets used to deliver services rather than those held primarily to generate cash flows. The pronouncement follows the release of IPSAS 46, Measurement and subsequent updates to Chapter 7 of the IPSASB Conceptual Framework.

Key Amendments to IPSAS Standards

  • IPSAS 12, Inventories: Introduction of current operational value as a measurement basis for specific inventory categories.
  • IPSAS 21, Impairment of Non-Cash-Generating Assets: Incorporation of current operational value to guide impairment testing for service-delivery assets.
  • IPSAS 3, Accounting Policies, Changes in Accounting Estimates and Errors: Addition of a formal definition for “accounting estimates” to improve clarity in financial reporting.
  • Disclosure Enhancements: Updated terminology and requirements for current value measurement disclosures to ensure consistency across the public sector reporting suite.

The IPSASB developed these amendments following a consultation process initiated in August 2024. The final standard aims to provide an integrated approach to valuation, specifically guiding entities on how to measure the current value of inventories and determine impairment in a public sector context where service potential is the primary driver of asset retention.

Click here to download the At a Glance summary or the full Amendments to IPSAS Standards.

What this means for you, your business, or your clients

  • For yourself: You must familiarise yourself with the “current operational value” concept as it differs significantly from fair value models used in the private sector, focusing on service potential rather than market-exit prices.
  • For your business: Public sector accounting firms and audit practices must update their technical manuals and compliance checklists to reflect the new definitions in IPSAS 3 and the measurement changes in IPSAS 12 and IPSAS 21 before the 2028 deadline.
  • For your clients: Public sector entities and state-owned enterprises using IPSAS will need to perform a gap analysis on their asset registers to identify non-cash-generating assets that require revaluation under the current operational value basis.

Originally published at https://accountingacademy.co.za/news/read/ipsasb-amendments-due-to-application-of-ipsas-46-measurement

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