AASB Special Project
'Fair Value in the Public Sector'
Since the implementation of accrual accounting across the public sector and the subsequent need to bring to account the assets of each entity in their Balance Sheet there has been great inconsistency in the application of valuation related standards across the various jurisdictions.
This has included unique requirements enshrined in State specific guidelines issued by Treasuries, Valuers-General and Offices of Local Government that are inconsistent with each other. Likewise the various Auditors-General in each jurisdiction seemed to have their own take on how to undertake valuations.
Driven by the inconsistency across jurisdictions and frustrations expressed by valuers and agencies the Australian Accounting Standards Board (AASB) appointed a Special Project Team in 2017 to review and make recommendations regarding 'Fair Value in the Public Sector'.
As recognised leaders in this specialised field APV was invited to participate as a member of the special project team which is also comprised of representatives from the Auditors-General, local government, accounting firms, State Treasuries and a range of Not-For-Profit sector agencies.
Key issues reviewed included the valuation of restricted land and the determination of Current Replacement Cost under AASB13.