IPSASB Issues Updated IPSAS Standard to Ease First-Time Adoption

The International Public Sector Accounting Standards Board (IPSASB®), developer of IPSAS® Standards, international accrual-based accounting standards for use by governments and other public sector entities around the world, has issued an updated IPSAS 33, First-time Adoption of Accrual Basis International Public Sector Accounting Standards.  

IPSAS 33 lays out how an entity that has never applied accrual IPSAS Standards can begin doing so in a consistent, credible way. Moving to accrual accounting can be technically complex and lengthy process. IPSAS 33 provides transitional reliefs (temporary exemptions and accommodations) to reduce burden and ease the transition to accrual-based IPSAS Standards.

“The successful application of IPSAS 33 is often a cornerstone of the adoption and implementation of IPSAS Standards. A government that uses IPSAS Standards is better equipped to make sound financial decisions, and we want to make the journey to implementation as easy as we can.” said IPSASB Chair Ian Carruthers. “This pronouncement does not to change the objective, scope, or available exemptions in IPSAS 33, rather, the updated version of IPSAS 33 clarifies the guidance, making it easier for entities to successfully complete their IPSAS transition journey.” 

IPSAS 33 was originally issued in 2015 and has been applied by a number of public sector entities during their transition to accrual basis IPSAS Standards. In response to user feedback, the updated IPSAS 33 provides:   

• More user-friendly guidance to support the entity’s broader accrual transition journey; 
• Clearer relief provisions throughout the entire transition process; and 
• Reliefs that encourage earlier recognition and measurement of items, helping entities achieve IPSAS compliance as early as possible. 

The newly published 2025 version of IPSAS 33 addresses these concerns while maintaining all existing reliefs that are available in the 2015 version.

IPSAS 33, First-time Adoption of Accrual Basis International Public Sector Accounting Standards is effective January 1, 2028. Earlier application is permitted.