1

Financial instruments in the SA public sector

2

Project history

• Develop Standards based on IFRS & IPSAS

• Coincided with work on non-exchange revenue

• Consider interaction between NXR & FI

3

Interaction

Asset

At fair value

Recognition and initial

measurement

IPSAS 23

Subsequent measurement

?

Derecognition

?

Financial instruments

4

Interaction

• FI definition limiting• Amend to ‘binding

arrangement’ contract + legislation

• Change of def ‘unintended consequences’ e.g. IPSAS 19

5

Interaction

• NXR allows receivables based on ‘estimates’ scope issues

6

Measurement

Asset

At fair value

Recognition and initial

measurement

IPSAS 23

Subsequent measurement

?

Derecognition

?

What is fair value?

7

Solution?

• Discussion Paper• 4 alternatives

-Amend definition-Existing definition, scope excl.-Two separate standards-One standard, contractual & non-contractual (sep parts)

8

Comments & questions?

9

Disclaimer

The views expressed in this presentation are those of the individual. Official positions of the ASB on accounting matters are determined only after extensive due process and deliberation.