IPSASB
International Federation of Accountants
International Public Sector Accounting
Standards Board (IPSASB)
Stuart Barr
(Technical Advisor to Sheila Fraser - INTOSAI)
INTOSAI PSC October 2008
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IPSASB
The IFAC IPSASB Mission
To serve the public interest by developing high
quality accounting standards for use by public
sector entities around the world, including
international organisations, in the preparation of
general purpose financial statements.
IFAC IPSASB is providing the benchmark
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IPSASB
IPSASB
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3 meetings per year
Open to the public
All materials publicly available – posted on internet
Transparent due process –you can get involved
18 members -15 from member bodies; 3 public
members
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IPSASB
Strong Evidence of Progress
• UN System (28 bodies)
• OECD, NATO (21 bodies), EC, IFAC,
INTERPOL
• Over 70 countries have agreed processes or have a
project in place to adopt IPSASs or align with
IPSASs
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IPSASB
What’s been issued….2006
IPSAS 1, “Presentation of Financial Statements”
(Revised)
IPSAS 3, “Accounting Policies, Changes in
Accounting Estimates and Errors” (Revised)
IPSAS 6, “Consolidated and Separate Financial
Statements” (Revised)
IPSAS 7, “Investments in Associates” (Revised)
IPSAS 8, “Interests in Joint Ventures” (Revised)
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IPSASB
What’s been issued….2006
IPSAS 12, “Inventories” (Revised)
IPSAS 13, “Leases” (Revised)
IPSAS 14, “Events After the Reporting Date”
(Revised)
IPSAS 16, “Investment Property” (Revised)
IPSAS 17, “Property, Plant and Equipment”
(Revised)
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IPSASB
What’s been issued….2006
IPSAS 22, “Disclosure of Information about the
General Government Sector”
IPSAS 23, “Revenue from Non-Exchange
Transactions (Taxes and Transfers)”
IPSAS 24, “Presentation of Budget Information in
Financial Statements”
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IPSASB
What’s been issued….2008
IPSAS 4, “The Effects of Changes in Foreign
Exchange Rates” (Revised)
IPSAS 21, “Impairment of Non-Cash-Generating
Assets” (Revised)
IPSAS 25, “Employee Benefits”
IPSAS 26, “Impairment of Cash-Generating Assets”
Cash Basis IPSAS, “Financial Reporting Under the
Cash Basis of Accounting” (Revised)
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IPSASB
Today… next year… 5 years on….
• Adopted/Adopting–Switzerland, South Africa,
Ghana, Philippines, Armenia, United Nations
We need to provide support
• Benchmark – Canada, US, Australia, NZ, UK
We must collaborate to encourage convergence
• Leadership and Promotion – India, China
We need to promote to encourage adoption
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IPSASB
IPSASB Strategic Themes
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Public sector conceptual framework
Public sector specific projects
IFRS Convergence
Promotion and communications
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IPSASB
Public Sector Conceptual Framework
Group 1 - Objectives, Scope, Qualitative
Characteristics, and Reporting Entity
Group 2 - Elements of Financial Statements and
wider GPFRs
Group 3 – Measurement, presentation and
disclosure
Group 4- Consequences for Cash Basis
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IPSASB
Public Sector Conceptual Framework
• Group 1- Consultation paper issued
September 2008
• Group 2 – Definition & recognition of
elements – Consultation Paper early
2009
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IPSASB
Public Sector Specific Projects
• Social benefits
• Long-term fiscal sustainability
• Service concession arrangements
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IPSASB
Social Benefits
• Limited scope
• ED on disclosures of cash transfers to
individuals/households issued February
2008
• Consultation paper explaining position
• Link to initiating long-term fiscal
sustainability project
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IPSASB
Long Term Fiscal Sustainability
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Early days
Task force met in early September
Initial discussion October 2008
Consultation paper to be considered
February 2009
INTOSAI PSC October 2008
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IPSASB
Service Concession Arrangements
• Consultation paper issued March 2008
• Positive feedback on potential for global
solution
• Control approach
• Measure asset/liability at fair value of
property
• Disclosures
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IPSASB
IFRS Convergence
• Target date December 31, 2009 of
IFRS @ December 31, 2008
• “Rules of the Road” – guidelines for
modifying and documenting departures
• Relationship with IASB renewed focus
INTOSAI PSC October 2008
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IPSASB
Development process…
IFRS
(Private Sector)
1
IPSASs
(Public
sector)
• Terminologies
•Public sector guideline
• Public sector issues
2
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FinancialIPSASB
Instruments
Financial Instruments
• Plan: 3 IPSASs in 2009 based on:
– IAS 32 Financial Instruments – Presentation
– IAS 39 FI: Recognition & Measurement
– IFRS 7 FI: Disclosure
• IPSASs will also address public sector
specific instruments and issues
• IPSAS 15 to be withdrawn when new
IPSASs issued
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IPSASB
Intangible Assets
• Agreed to a convergence project based on IAS 38
• Rights granted by statute – are they assets?
• Exposure draft to be considered October 2008
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IPSASB
Entity Combinations
• 2 separate IPSASs to be developed :
• IPSAS converged with IFRS 3 – exchange (non
common control)
• Public sector specific IPSAS – non-exchange
(non common control and common control)
• Converged ED and issues paper - February 2009
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IPSASB
IPSASB over next few years
• IFRS convergence - notably
• FI
• Entity combinations
• Intangible assets
• Agriculture
• Annual improvements
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IPSASB
IPSASB over next few years
• Conceptual framework
• Social benefits & long term fiscal
sustainability
• Service concession arrangements
• Performance reporting – potential audit
issues
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IPSASB
Partnerships Working
• World Bank and Development Banks – External
Assistance Standard
• IMF – PPP Standard
• IFAC – DNC – External Assistance Standard
• IASB – PPP Standard and Conceptual Framework
• National Standard Setters - PPP Standard and
Conceptual Framework
• INTOSAI – all of the above!
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IPSASB
Keep up to date on IPSASB projects
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IPSASB Project Pages – all IPSASB projects
http://www.ifac.org/PublicSector/
•
IFAC eNews – Free electronic newsletter
– Enroll at www.ifac.org
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IPSASB
International Federation of Accountants
www.ifac.org
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