BC18. In December 2020, the IPSASB issued Non-Authoritative Amendments to IPSAS 41, Financial Instruments which amended the non-authoritative Illustrative Examples and Illustrative Guidance accompanying IPSAS 41, Financial Instruments. The aim of those amendments was to clarify the accounting treatment of the following items that may be held by public sector entities:
(a) Monetary gold;
(b) Currency in circulation;
(c) International Monetary Fund special drawing rights; and
(d) IMF quota subscriptions.
BC19. The NZASB considered that some public sector PBEs in New Zealand could also find these clarifications helpful and proposed equivalent amendments to PBE Standards. In April 2022 the NZASB issued for comment NZASB ED 2022-8 Public Sector Specific Financial Instruments (Proposed non-authoritative amendments to PBE IPSAS 41). The NZASB noted that the clarifications would ensure that PBE IPSAS 41 continues to be aligned with IPSAS 41.
BC20. The IPSASB had concluded as part of these non-authoritative amendments to IPSAS 41 (BC3E of IPSAS 41) that “IMF quota subscriptions share a number of features with those in Illustrative Example 32 in IPSAS 41”. The NZASB considered Illustrative Example 32 and concluded it was not useful when determining how to account for IMF quota subscriptions because it does not include all the features that are specific to this arrangement. The NZASB noted that each jurisdiction will need to apply the principles and requirements of IPSAS 41 when determining how to account for IMF quota subscriptions, which will be based on their individual facts, circumstances and how they manage IMF transactions and arrangements.
BC21. In August 2022 the NZASB finalised the amendments and issued Public Sector Specific Financial Instruments (Non-Authoritative Amendments to PBE IPSAS 41).