The International Public Sector Accounting Standards Board has opened a public consultation to rethink how governments and public bodies display financial information in their general purpose financial statements, with an eye toward clearer, more useful reporting. The board wants feedback to help replace IPSAS 1 with a modern standard that improves clarity, supports accountability, and better serves legislators, oversight bodies and the public. Responses are due by 14 September 2026.
The consultation paper asks stakeholders to weigh in on how financial statements should be structured so users can understand a public sector entity’s position and performance at a glance. At the heart of the review is the push to modernize presentation, not just tweak wording, so reports fit with evolving global practice and user expectations. The IPSASB frames the effort as a way to make financial reports more accessible without sacrificing rigor.
Replacing IPSAS 1 means addressing a standard that has been guiding presentation since 2000 and was written for a very different reporting environment. Over two decades of change in accounting practice, technology and the needs of report users mean an update could remove outdated conventions and add clarity. The board wants to hear from preparers, auditors, users and anyone who relies on public sector financial data.
The IPSASB highlights the importance of reliable figures and clear layouts for real-world decisions. Better presentation can speed up oversight and make it easier for elected officials and watchdogs to spot risks and trends. Clear reporting also helps citizens understand how public money is managed, which is essential for accountability.
Stakeholder input will directly influence the drafting of the proposed new IPSAS that would take the place of IPSAS 1. That means comments received now could change the structure of the primary financial statements, disclosure requirements and guidance on presentation choices. The board is explicitly inviting practical suggestions on what users need to see first and what can be streamlined.
In explaining the consultation, the IPSASB chair said: “This consultation reflects how the IPSASB is modernising financial statement presentation in line with evolving global standards. He added that: “Improving how public sector financial information is communicated is essential to ensuring it is useful and actually used by those it is intended to inform. He also noted: “Using reliable financial data strengthens decision-making and accountability, supports public financial management, and helps to meet the needs of legislators, oversight bodies and the public.”
The board is also considering how presentation interacts with other reporting tools and frameworks, such as budget reports and performance information. Aligning presentation across documents can reduce confusion and duplication, making it simpler for users to connect the dots between inputs, outputs and financial outcomes. Respondents are encouraged to comment on which linkages are most valuable and how to preserve comparability across reporting cycles.
Practical concerns are a focus: the IPSASB wants proposals that are implementable by public sector entities with limited resources. That includes thinking about the cost of change and the time required to redesign systems and disclosures. The consultation is asking for feedback on transitional arrangements and the kind of support that would make any new standard workable worldwide.
The board has been active on related fronts, recently issuing two new Exposure Drafts that seek feedback on proposed tweaks to the public sector reporting framework. Those documents add context to this project and show a wider effort to update how public sector information is framed and communicated. Together, the consultative materials form a package meant to bring presentation and broader reporting practices into closer alignment.
For those who prepare or rely on public sector financial statements, this is a chance to shape rules that determine whether reports feel like a tangle of numbers or a clear story. The window for comments closes on 14 September 2026, after which the IPSASB will use the input to draft the replacement standard. Interested parties should consider practical proposals that improve clarity, reduce unnecessary complexity, and strengthen the public accountability chain.
