The Future We N.
started this petition to
International Public Sector Accounting Standards Board (IPSASB)
Congratulations! You made a difference! The final IPSASB work plan was released on 28-Feb (http://www.ifac.org/publications-resources/ipsasb-strategy-and-work-plan-2019-2023). The new standard on natural resources remains the top priority.
Other than this petition, there were 8 others that specifically sent comments supporting natural resources. If we hadn't, there's a good chance natural resources would not have made the top 2. Thank you!
As we recommended, their default is to begin with extractives, and then to move on to other natural resources. Here's what the Work Plan says: "Natural Resources: The issue of accounting for natural resources in the public sector is prevalent in many jurisdictions. Governments often have little idea of the monetary value of natural resources until after they are extracted. However, the rights to extract such resources are often granted beforehand to third parties who then profit from their extraction. From a public interest perspective, this is an important issue, particularly in jurisdictions with resource-based and resource rich economies because the recognition and measurement of these assets impact their management and the benefits derived by citizens from their extraction. The scoping phase of this project will not only have regard to extractive resources, but will also consider the potential for inclusion of broader natural resources, such as water, natural phenomena and living species."
At their March 2019 meeting, IPSASB suggested that Natural Resource be added to the Work Plan after the Public Sector Standard Setters’ Forum on 24-25 June 2019 (Niagara-on-the-lake, Ontario, Canada).
The IPSAS process begins with scoping, then goes into consultation and drafting with the eventual release of a exposure draft. Then after public comments and much more work, a final standard is approved. This is all reviewed somewhat transparently in quarterly board meetings.
Thanks once again. This is a critical first step on a long journey.
We are being fooled and cheated. Natural resources, including minerals, are a shared inheritance. We must ensure our children receive either the minerals or their value. Mining is the sale of our mineral wealth, and royalty is the financial wealth we receive in exchange.
Misleadingly, government accounts treat royalty as "revenue". Politicians love it - more mining = more revenue = lower taxes or greater patronage = good.
In reality, minerals are being sold for enormous losses. IMF estimates the best case is a 15% loss.
If minerals worth 100 are sold, at present, the government records "revenue" of 85. The true picture is a loss of 15. More mining = more losses of wealth.
As long as politicians see mineral wealth as a windfall, we will consume the planet. This must stop.
IPSASB has opened its draft Work Plan 2019-2023 for public comments. We will submit this petition on the last day for comments, June 30, 2018.
IPSASB must keep a new standard for Natural Resources at the top of its priority list. This is essential if our civilisation is to survive.
Posted: 25 June 2018 (Updated: 27 March 2019)