Measurement of Assets and Liabilities under the IAS JS/IPSAS Conceptual Framework

Abstract

The measurement of assets and liabilities in the public sector must consider the primary objectives of the majority of public sector entities and the types of assets and liabilities they hold. The goal of measuring the value of these entities’ assets and liabilities is to select measurement bases that most accurately reflect the entity’s service costs, operating capacity, and financial capacity. This ensures that the information is useful for accountability and decision-making purposes. Adhering to the IAS JS/IPSAS standards for measuring assets and liabilities also aids users of financial statements in assessing the effectiveness of public sector entities in delivering services to citizens. This paper discusses the approach to value measurement outlined in Chapter 7 of the IAS JS/IPSAS Conceptual Framework.