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IPSAS Compilation andCertification Program forDeveloping
CountriesDr. Jesse Hughes, CPA, COA, CGFM
Chair, ICGFM Accounting StandardsCommittee
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Components of CompilationProgram
IPSAS Compilation Guide for Developing
Countries
Roadmap on path from cash based
reporting to accrual-based IPSAS
Certificate of Conformance for various
stages of IPSAS implementation
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Categories of GovernmentControlled Entities Central
Governmentprimarily budgetary entities
at the national level
General Government Central Government
State Government Local Government
Government Business Enterprises
Categories Correspond to Those Used in the GFSImplementing Guide
for Developing Countries
issued by IMF
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Six Stages in the Path from Cashto Accrual-Based IPSAS1. Current
reporting by select entities
2. Central GovernmentCash Basis IPSAS (Part 1)
3. Central Governmentmodified accrual to includefinancial assets
and liabilities
4. General Governmentfull accrual IPSASs to includeall assets
and liabilities
a. Central Government
b. State Government
c. Local Government
5. Government Business EnterprisesIAS/IFRS6. Consolidated Whole
of Governmentfull accrual
IPSAS
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Which Stage Applies to You?
Government entities may enter at any stage
depending on jurisdictional circumstances.
The Compilation Guide, along with the
applicable IPSAS, will be used as the criteria toidentify the
stage in which to enter.
The Compilation Guide will be revised as
necessary in response to experience in field
testing.
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Stage 1. Current Reporting bySelect Controlled Entities (Year
1)
Statement of Cash Position
Budget to Actual Comparative Statement
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Stage 2. Central GovernmentCash Basis IPSAS (Years 2-3)
Opinion of Supreme Audit Institution*
Financial Statement Discussion and
Analysis*
Statement of Cash Receipts and Payments
to include Payments by Third Parties
Comparative Statement of Budget toActual Amounts
Footnote Disclosures
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Stage 3. Central GovernmentModified Cash Basis Reporting
(Years
3-5) Opinion of Supreme Audit Institution* Financial Statement
Discussion and Analysis*
Statement of Cash Receipts and Payments to
include Payments by Third Parties Comparative Statement of
Budget to Actual
Amounts
Intermediate Statement of Financial Position
Intermediate Statement of Financial Performance Intermediate
Statement of Changes in Net Assets
Footnote Disclosures
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Stage 4. General GovernmentAccrual IPSAS (Years 5-8)
Opinion of Supreme Audit Institution*
Financial Statement Discussion and Analysis*
Statement of Cash Flows
Comparative Statement of Budget to ActualAmounts
Statement of Financial Position
Statement of Financial Performance Statement of Changes in Net
Assets
Footnote Disclosures
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Stage 5. Government BusinessEnterprisesIAS/IFRS (Years 3-5)
Opinion of Supreme Audit Institution
Financial Statement Discussion andAnalysis
Statement of Cash Flows
Statement of Financial Position
Comprehensive Statement of Income
Statement of Changes in Equity
Footnote Disclosures
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Stage 6. Consolidated Whole ofGovernmentAccrual IPSAS (Year
10+)
Opinion of Supreme Audit Institution*
Financial Statement Discussion and Analysis*
Statement of Cash Flows
Comparative Statement of Budget to ActualAmounts
Statement of Financial Position
Statement of Financial Performance Statement of Changes in Net
Assets/Equity
Footnote Disclosures
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Roadmap to ImplementingCompilation Guide
Adopt IPSAS
Establish Steering Committee and
Working Group
Build Capacity (train at all levels)
Progressively Implement each Stage
Apply for Certificate of Conformance atConclusion of each
Stage
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Certificate of Conformance
Recognizes Achievement at each Stage
along Path to Implementing Accrual IPSAS
Independent Evaluation of
Accomplishments
Certificate of Conformance Attached to
Financial Statements to Advise Readers of
Level of Achievement
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Volunteers Needed
Countries to field test Compliance Guidefor practicality.
Countries to field test Certificate of
Conformance program for applicability. Members on ICGFM
Accounting Standards
Committee to assist in developing IPSAS
Compilation and Certification Program.If interested, contact Dr.
Hughes
([email protected])
