Public Benefit Entities – Amending standard issued
We have issued an amending standard today that applies to Tier 1 and Tier 2 public benefit entities—both not-for-profit and public sector entities.
Impairment of Revalued Assets (Amendments to PBE IPSASs 21 and 26)
This amending standard is based on amendments issued by the International Public Sector Accounting Standards Board (IPSASB).
This standard amends PBE IPSAS 21 Impairment of Non-Cash-Generating Assets and PBE IPSAS 26 Impairment of Cash-Generating Assets to bring assets measured at revalued amounts within the scope of the standards.
Amendments are also made to PBE IPSAS 17 Property, Plant and Equipment and PBE IPSAS 31 Intangible Assets as a result of the amendments to PBE IPSASs 21 and 26.
Previously there was some uncertainty about the requirements relating to the recognition of an impairment loss when an item of revalued property, plant and equipment was damaged or no longer available for use. The issue was whether the entire class of assets needed to be revalued when an impairment loss on damaged/unusable property, plant and equipment was recognised.
This standard removes the uncertainty by including revalued property, plant and equipment and revalued intangible assets in the scope of the impairment standards.
The amendments are effective for annual financial statements covering periods beginning on or after 1 January 2019, with early application permitted.
The PDF file below for this amending standard is the same document for each standard being amended for both not-for-profit and public sector entities.