In this webinar, IPSASB Technical Director John Stanford and IPSASB Principal Paul Mason provide an introduction to IPSAS 40, Public Sector Combinations, including the project history, key definitions, approach to classification of combinations, and key changes since the Combinations Exposure Draft.

IPSAS 40 provides the first international accounting requirements that specifically address the needs of the public sector when accounting for combinations of entities and operations. The standard classifies public sector combinations as either amalgamations or acquisitions.

For amalgamations, the standard requires use of the “modified pooling of interests” method of accounting, which is a variation of the pooling of interests method of accounting (also referred to as “merger accounting”), in which the amalgamation is recognized on the date it takes place.