IPSASB Issues New Standard – Tangible Natural Resources Held for Conservation

IPSAS 51

The International Public Sector Accounting Standards Board (IPSASB) has issued a new standard, IPSAS 51, on tangible natural resources held for conservation, to ensure that public sector entities worldwide can recognise the value of the resources they protect, making ‘invisible’ natural wealth visible to the public.

This standard will be effective globally on 1st January 2028, while in Kenya it will be effective on 1st July 2028; however, early adoption is permitted. The standard aims to provide transparency into how tangible natural resources held for conservation change over time and to reveal whether those resources are being restored or depleted. A tangible natural resource held for conservation is a naturally occurring tangible asset that is managed to prevent its degradation.

“The new global standard was developed because vital environmental assets, such as forests, water bodies, and national parks, have historically been omitted from financial statements due to a lack of standardized reporting guidance,” PSASB CEO, FCPA Georgina Muchai said.

The new standard provides a standardized guide for public-sector entities to recognize and report tangible natural resources, specifically when they are held for conservation purposes. This ensures that environmental resources move from mere disclosure to recognition and measurement for inclusion in the financial statements.  By taking stock of natural resources, transparency is achieved through evidence-based data that reveal how their value changes over time. This ensures proper maintenance of the resources to avoid depletion and degradation and provides a clearer picture of the government’s true wealth.

PSASB Invites Comments on Annual Financial Reporting Templates

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The Public Sector Accounting Standards Board (PSASB) is reviewing the existing annual financial reporting templates and invites all stakeholders to provide comments.

The annual financial reporting templates are designed to provide a standardized framework for financial reporting across all public sector entities. The templates aim to standardize reporting processes, improve the accuracy of financial information, and enhance compliance with the Public Finance Management Act (PFMA), 2012, and other relevant reporting requirements. Stakeholder engagement is a key part of the template development and review process.

PSASB stakeholders, including preparers of financial statements, auditors, professional bodies, civil society organizations, and members of the public with an interest in public sector financial management, are invited to review the templates and provide feedback. The input will be reviewed and incorporated into the existing templates to improve their effectiveness across all public sector entities.

“Public participation is part of our commitment to improving financial reporting across Kenya’s public sector, enhancing transparency and accountability in the preparation of annual financial statements. Our templates are user-friendly and aligned with international best practices,” PSASB CEO, FCPA Georgina Muchai said.

The templates can be accessed and downloaded from PSASB’s official website: https://www.psasb.go.ke/financial-reporting-templates. Detailed instructions for submitting comments are provided in the official advertisement published in on Tuesday 17th February 2026 on MyGov pullout: https://www.mygov.go.ke/sites/default/files/2026-02/MyGov%20February%2017%2C%202026.pdf

PSASB Launches Year-Two Course on e-Learning Platform

Cash to Accrual Accounting Year Two

The Public Sector Accounting Standards Board (PSASB) has launched Year 2 course on the e-learning platform to retool public sector accountants as their entities transition from cash to accrual accounting.

Year 2 of the transition requires entities to report inventory as a compulsory element in the financial statements, in addition to the financial assets and liabilities recognized in Year 1. Entities are encouraged to report on the noncurrent assets for which they have information.

The year 2 course is divided into two parts. Part 1 covers inventory – IPSAS 12, while Part 2 covers other non-current assets required to be reported in year 3 of the transition. These include Agriculture – IPSAS 27, Intangible Assets – IPSAS 31, Leases – IPSAS 43, and Property, Plant and Equipment – IPSAS 45.

“As we launch the course, we invite accountants from the transitioning entities to register on our e-learning platform to empower them with the skills needed to prepare better financial reports, which is a key factor in promoting accountability,” FCPA Georgina Muchai said.

Part one of the course focuses on the recognition, measurement, and disclosure of inventory. The content provides illustrative examples from the public sector and concludes with multiple-choice questions to assess learners’ knowledge.

‘‘The transition to accrual accounting is a key reform in public financial management. We want to support public sector accountants in building practical competencies that will improve the quality, reliability, and comparability of financial reports in line with international standards,’’ FCPA Georgina added.

The portal is now open, and public-sector accountants from the transitioning entities can register and take the courses at the following link: https://masomo.psasb.go.ke/.

For any inquiries, stakeholders can contact PSASB at acctstandards@psasb.go.ke.