Interpretation and Application of IPSAS

7 Long-Term (Non-Current) Assets

This chapter covers the IPSAS that detail the requirements for accounting for, and reporting on, long-term assets and related transactions. The chapter thus includes: IPSAS 17 Property, Plant and Equipment; IPSAS 5 Borrowing Costs; IPSAS 31 Intangible Assets; IPSAS 16 Investment Property; IPSAS 21 Impairment of Non-Cash-Generating Assets; and IPSAS 26 Impairment of Cash-Generating Assets. It should also be noted that, where relevant, the requirements, in terms of first-time adoption of the standards pertaining to long-term assets, stipulated in IPSAS 33 on First-time Adoption of Accrual Basis International Public Sector Accounting Standards (IPSAS), will be highlighted. As shown in Table 1.1 in Chapter 1, it becomes mandatory to comply with IPSAS 33, as of 1 January 2017.

In terms of accounting and reporting on assets, following IPSAS, there are items and issues that are specific to the public sector. Examples include heritage assets and infrastructure assets. In addition, the concept of non-cash-generating assets does not exist in private sector accounting (see also for example Bandy, 2014; Jones and Pendlebury, 2010).

Figure 7.1 provides an overview of some key, important questions with answers in terms of which IPSAS to use for which asset and asset-related transactions.

Figure 7.1 Key questions to determine asset and asset related transactions ...