1. 1 Financial instruments in the SA public sector

2. 2 Project history Develop Standards based on IFRS & IPSAS Coincided with work on non- exchange revenue Consider interaction between NXR & FI

3. 3 Interaction Asset At fair value Recognition and initial measurement IPSAS 23 Subsequent measurement ? Derecognition ? Financial instruments

4. 4 Interaction FI definition limiting Amend to binding arrangement contract + legislation Change of def unintended consequences e.g. IPSAS 19

5. 5 Interaction NXR allows receivables based on estimates scope issues

6. 6 Measurement Asset At fair value Recognition and initial measurement IPSAS 23 Subsequent measurement ? Derecognition ? What is fair value?

7. 7 Solution? Discussion Paper 4 alternatives -Amend definition -Existing definition, scope excl. -Two separate standards -One standard, contractual & non-contractual (sep parts)

8. 8 Comments & questions?

9. 9 Disclaimer The views expressed in this presentation are those of the individual. Official positions of the ASB on accounting matters are determined only after extensive due process and deliberation.