Stakeholder Comments on IPSAS ED 93 Sought by July 14, 2025
NEW YORK - The International Public Sector Accounting Standards Board (IPSASB) re-leased the IPSAS Exposure Draft (ED) 93, Definition of Material (Amendments to IPSAS 1, IPSAS 3, and the Conceptual Framework) for public comment.
This ED seeks to provide more consistent guidance on materiality across the IPSASB’s financial re-porting literature to assist entities in its application, and help them to develop clearer, more useful financial reports.
IPSAS ED 93 proposes aligning the definition of material between the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities and IPSAS Standards by:
•Clarifying that an entity is required to consider the information needs of primary users instead of other users of GPFRs; and
•Aligning the definition of material in IPSAS 1, Presentation of Financial Statements, with Chap-ter 3: Qualitative Characteristics of the Conceptual Framework.
“Getting the definition of materiality right is critical because it affects what information is presented in public sector financial reports,” said Ian Carruthers, IPSASB Chair. "The clear and consistent def-inition of material proposed in this ED will not only help entities with its application but will also provide a strong foundation for developing non-authoritative guidance on making materiality judg-ments in the second phase of this project.”
The IPSASB welcomes your views on the proposed standard and other matters raised for comment in this IPSAS ED. The comments received will help shape the final pronouncement.
To facilitate stakeholder engagement, this project will be undertaken in three distinct phases:
•Phase 1—Review the consistency of the definition of ‘material’ across the IPSASB financial reporting guidance and propose changes to achieve this. IPSAS ED 93 delivers this phase.
•Phase 2—Materiality in Financial Reporting: Develop non-authoritative guidance aligned with IFRS® Practice Statement 2, Making Materiality Judgments. This narrow-scope project will effi-ciently and promptly address constituents' need for additional guidance on making materiality judgments when preparing financial statements in accordance with IPSAS.
•Phase 3—Materiality in Sustainability Reporting: Develop guidance on making materiality judgments when preparing sustainability reporting in accordance with IPSASB SRS. This phase will commence following the development of IPSASB SRS ED 1, Climate-related Disclosures.
www.ifac.org