International Public Sector Accounting
Standards Board (IPSASB)
UPDATE
IFAC IPSASB
IPSASB Members 2006
• Accounting Profession
France (Chair), UK (Deputy Chair), Australia,
Argentina, Canada, India, Israel, Japan, Malaysia,
Mexico, New Zealand, Netherlands, Norway,
South Africa, USA
Public Members
Prof A Bergman (Switzerland), Prof S. Pozzoli (Italy),
Mr J. Peace (USA)
• IPSASB Observers
ADB, EU, IASB, IMF, INTOSAI, OECD,
World Bank, UN, UNDP
March 2006
IPSASB
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IFAC IPSASB
IPSASB Work Program
• 3 priority categories:
– 1st – Public sector specific issues (including
cash and accrual basis issues)
– 2nd – Continue convergence with IFRSs
where appropriate
– 3rd – Convergence with statistical bases
where appropriate
• Current resource constraints limit progress on
some aspects of the program.
March 2006
IPSASB
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IFAC IPSASB
Pronouncements / Publications
• 21 accrual Standards (based on IASs issued as
at August 97 where appropriate)
• Comprehensive Cash Basis IPSAS
– (ED 24 proposes an addition to cash requirements)
• Studies, Research Reports and Invitations to
Comment (ITCs)
• See Attachment for IPSASs, EDs, Research
Reports
March 2006
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IFAC IPSASB
Exposure Drafts (ED) on Issue
ED 24“Cash Basis External Assistance”-comments 15 June 05
ED 25 “Amendment to the Preface to IPSASs” (by 31 Jan 06)
ED 26 “Improvements to IPSASs (by 31 Jan 06)
ED 27 “Presentation of Budget Information in Financial
Statements” (by 10 Feb 06)
ED 28 “Disclosure of Financial Information About the
General Government Sector” (by 10 Feb 06)
ED 29 “Revenue from Non Exchange Transactions”
(including Taxes and Transfers) (by 30 June 06)
Some details follow
March 2006
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IFAC IPSASB
Papers for Issue - March
Consultation Paper – Accounting for Heritage Assets
Under the Accrual Basis of Accounting
- Input on UK-ASB paper from international
community
- Input to IPSASB’s own project
Occasional Paper - The Road to Accrual Accounting
in the USA
March 2006
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IFAC IPSASB
Available on the IPSASB Web Site
• All IPSASs
– (including Spanish and French translations)
• All current Exposure Drafts and ITCs
• IPSASB Update on most recent IPSASB meeting
• IPSASB meeting papers (before each meeting)
FREE OF CHARGE AT: WWW.IPSASB.ORG
March 2006
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IFAC IPSASB
ED 24 Disclosure of External Assistance
(Cash Basis) (1st Priority Project)
• At request of OECD and Multilateral Development
Banks to harmonize/reduce compliance costs
• Comment period closed June 05 - 30 responses
• Differing views-some ED 24 too onerous, others not
• Availability of information? - Donors need to provide
• Follow up with Consultative Group, OECD, and with
donors in member countries re field test/additional input
• March 06 IPSASB consider strategy to progress
- Consider mandatory and encouraged sections?
March 2006
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IFAC IPSASB
ED 25&26 – Improvements to IPSASs (2nd Priority
Project)
Issued in September 2005 for comment by Jan 31, 06
• ED 25 - Black and grey letters to have “equal
authority”
• ED 26 - Improve 11 IPSASs.
– See attachment for IPSASs included
• Based on improved IASs as at Dec 03
• Restructuring of IPSASs, remove some options
• Clarify “hierarchy”
• Clarify certain requirements
March 2006
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IFAC IPSASB
ED 27 Presentation of budget information in Fin.
Statements (1st Priority Project)
Applies to public sector entities required to make
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publicly available their approved budgets
Applies for cash basis and accrual basis
To discharge accountability/enhance transparency
Disclose original and final budget by major class
Disclose actual (on budget basis)
Reconcile to key amounts in GPFS
IPSASB start consider responses March 06
March 2006
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IFAC IPSASB
ED 28 Disclosure of Fin. Info about the General
Government Sector (GGS) (3rd Priority Project)
Applies to whole of government accrual basis
• Disclosure not required but “Rules” if elect to disclose
- apply IPSASs except IAS 6 Consolidation
• Support convergence with statistical basis
• Disaggregate Gov Consolidated Fin Statements
• “GGS” as defined in statistical reporting bases
• Reconcile GGS to the GPFS
• Does not require/preclude reconcilation to GFS
• IPSASB start consider responses March 06
March 2006
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IFAC IPSASB
ED 29- Non Exchange Revenue (1st Priority Project)
• Deals with Taxes and Transfers including Gifts,
Donations, and Fines
• Adopts an Assets and Liabilities approach
• Major issues
- fair value for initial recognition of assets acquired in a
non-exchange transaction
- Conditions on transfers – a liability?
- Tax expenditure, expenses paid through tax system
-March
reliable
estimate of accrued
tax revenue
2006
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IFAC IPSASB
Work in progress
Social Policy Obligations (1st Priority Project)
• Social policy obligations – split project
• Develop ED social benefits other than pensions and
similar benefits
• Develop ED on pensions and similar benefits
– Welfare pensions
– Contributory pensions
• Exploring liability is amount due and payable
– with additional disclosures of PV information
Consider if issue both together in 06
March 2006
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IFAC IPSASB
Other Active Projects (1st Priority Project)
• Service concession arrangements (public-private
partnerships)
• Subcommittee monitor IFRIC developments)
• IPSASB Concerns with IFRIC:
– Grantors not dealt with
– Limited range of arrangements within scope
– Notion of control encompasses regulatory control
• Explore joint project with National Standards
Setters
March 2006
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IFAC IPSASB
Other Active Projects (1st Priority Project)
• Applicability of IAS 19 to public sector - issue
ED late 06
• Heritage Assets
• Conceptual framework for Public Sector
– consider IPSASB strategy - March
– subcommittee monitoring IASB project
• Impairment of cash generating assets (based on
IAS 36)
March 2006
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IFAC IPSASB
Work Program 2006+
• Other projects to progress in 2006+, subject to
resources
Review implementation of Cash Basis IPSAS
Budget reporting – prospective information
Develop IPSASs based on IFRSs
Performance reporting – Stats basis & IFRS
Non-financial performance reporting
Operations review
March 2006
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IFAC IPSASB
IPSASB Funding and resources
• Ongoing Issues
– funding
– ensuring staff resources
– strengthening liaison with constituents
– ensuring input from preparers and users
around the world
– communicating the message
March 2006
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International Federation of Accountants
www.ifac.org
IFAC IPSASB
ATTACHMENT 1 – IPSASB Due Process
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Exposure Drafts – at least 4 months comment
Open meetings, agenda materials on web
Steering Committees (SC) – ITCs for comment
Project Advisory Panels (PAP) – input to
IPSASB
• Consultative Group (CG)
• Regional Seminars/round table discussions in
conjunction with each IPSASB meeting
March 2006
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IFAC IPSASB
ATTACHMENT 2 – Accrual IPSASs
(* Identifies IPSASs currently being improved)
*IPSAS 1, “Presentation of Financial Statements”
IPSAS 2, “Cash Flow Statements”
*IPSAS 3, “Net Surplus or Deficit for the Period,
Fundamental Errors and Changes in
Accounting Policies”
*IPSAS 4, “The Effects of Changes in Foreign
Exchange Rates”
IPSAS 5, “Borrowing Costs”
*IPSAS 6, “Consolidated Financial Statements and
Accounting for Controlled Entities”
March 2006
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IFAC IPSASB
ATTACHMENT 2 – Accrual IPSASs (cont.)
*IPSAS 7, “Accounting for Investments in Associates”
*IPSAS 8, “Financial Reporting of Interests in Joint
Ventures”
IPSAS 9, “Revenue from Exchange Transactions”
IPSAS 10, “Financial Reporting in Hyperinflationary
Economies”
IPSAS 11, “Construction Contracts”
*IPSAS 12, “Inventories”
March 2006
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IFAC IPSASB
ATTACHMENT 2 – Accrual IPSASs (cont.)
*IPSAS 13, “Leases”
*IPSAS 14, “Events After the Reporting Date”
IPSAS 15, “Financial Instruments: Disclosure and
Presentation”
*IPSAS 16, “Investment Property”
*IPSAS 17, “Property, Plant and Equipment”
March 2006
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IFAC IPSASB
ATTACHMENT 2 – Accrual IPSASs (cont.)
IPSAS 18, “Segment Reporting”
IPSAS 19, “Provisions, Contingent Liabilities and
Contingent Assets”
IPSAS 20, “Related Party Disclosures”
IPSAS 21, “Impairment of Non-cash-generating Assets”
March 2006
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IFAC IPSASB
ATTACHMENT 2 – (cont.)
Recent Research Reports/Consultation Papers
• Budget Reporting (May 04)
• Comparison between GPFS and GFS/SNA
(January 05)
• Heritage Assets under the Accrual Basis of
Accounting (March 06)
• The Road to Accrual Accounting in the United
States of America (March 06)
March 2006
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