Interpretation and Application of IPSAS

16 Consolidations and Strategic Investments

This chapter focuses on a suite of IPSAS. Firstly it covers currently applicable IPSAS 6 Consolidated and Separate Financial Statements, IPSAS 7 Investments in Associates, and IPSAS 8 Interests in Joint Ventures.

However, as of 1 January 2017, IPSAS 6, 7, and 8 will be superseded by a new set of issued IPSAS, namely 34, 35, 36, 37, and 38.¹ This suite of “new” IPSAS were published in January 2015 with an effective date of 1 January 2017, with early adoption permitted. If an entity applies these “new” IPSAS for a period beginning before 1 January 2017, it shall disclose that fact and apply IPSAS 34, IPSAS 35, IPSAS 36, IPSAS 37, and IPSAS 38 at the same time.

This chapter therefore also includes coverage of the following:

• IPSAS 34 Separate Financial Statements
• IPSAS 35 Consolidated Financial Statements
• IPSAS 36 Investments in Associates and Joint Ventures
• IPSAS 37 Joint Arrangements
• IPSAS 38 Disclosure of Interests in Other Entities.

In order to provide a complete picture of IPSAS as they stand today and forthcoming applicable IPSAS, this chapter will include coverage of currently applicable IPSAS (i.e., 6, 7, and 8) as well as highlighting the forthcoming changes in the “new” IPSAS that have to be applied at the latest in annual financial statements covering periods beginning on or after 1 January 2017.

In terms of IPSAS 33 First-time Adoption of Accrual Basis International Public Sector Accounting Standards and transitional provisions ...