IPSAS 45
The IPSASB accrual accounting standard for property, plant and equipment in the public sector, replacing IPSAS 17 for reporting periods beginning on or after 1 January 2025.
IPSAS 45 was issued in May 2023 as part of a package of measurement pronouncements. It carries the recognition, measurement and depreciation rules for the largest line on most public sector balance sheets, and it added what IPSAS 17 lacked: guidance on heritage assets and infrastructure assets, and a current operational value basis within the updated current value model.
Two of its positions do most of the work in practice. Paragraph 8 declines to prescribe a unit of measure for recognition, requires judgement in applying the criteria, and permits individually insignificant items to be aggregated. Paragraph 48 requires the useful life of each asset to be reviewed at least at each annual reporting date, and paragraph 58 requires the same of the depreciation method. The standard is permissive where amounts are small and strict where a judgement moves the accounts.
It is free to read in full, with its Basis for Conclusions in the same document, which records why the board settled each position as it did.
Sources
IPSAS 45, Property, Plant, and Equipment, IPSASB, issued May 2023, effective for reporting periods beginning on or after 1 January 2025, paragraphs 8, 48 and 58, with the Basis for Conclusions in the same document. It replaced IPSAS 17.
Read the sources
- IPSAS 45, property, plant and equipment2023, effective 1 January 2025; read 2026-09-01.Free in full, with its Basis for Conclusions in the same document. Replaced IPSAS 17 from 1 January 2025.