IPSASBIPSASB 1 International Federation of Accountants International Public Sector Accounting Standards Board (IPSASB) Stuart Barr (Technical Advisor to

IPSASBIPSASBIPSASBIPSASB

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International Federation of AccountantsInternational Federation of Accountants

International Public Sector Accounting International Public Sector Accounting Standards Board (IPSASB)Standards Board (IPSASB)

Stuart Barr Stuart Barr (Technical Advisor to Sheila Fraser - INTOSAI)(Technical Advisor to Sheila Fraser - INTOSAI)

INTOSAI PSC October 2008


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The IFAC IPSASB MissionThe IFAC IPSASB Mission

To serve the public interest by developing hTo serve the public interest by developing high igh quality accounting standards for use by public quality accounting standards for use by public sector entities around the world, including sector entities around the world, including international organisations, in the preparation of international organisations, in the preparation of general purpose financial statements. general purpose financial statements.

IFAC IPSASB is providing the benchmarkIFAC IPSASB is providing the benchmark



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IPSASBIPSASB

• 3 meetings per year3 meetings per year

• Open to the publicOpen to the public

• All materials publicly available – posted on internetAll materials publicly available – posted on internet

• Transparent due process –you can get involvedTransparent due process –you can get involved

• 18 members -15 from member bodies; 3 public 18 members -15 from member bodies; 3 public membersmembers



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Strong Evidence of ProgressStrong Evidence of Progress

• UN System (28 bodies)UN System (28 bodies)• OECD, NATO (21 bodies), EC, IFAC, OECD, NATO (21 bodies), EC, IFAC,

INTERPOLINTERPOL• Over 70 countries have agreed processes or have a Over 70 countries have agreed processes or have a

project in place to adopt IPSASs or align with project in place to adopt IPSASs or align with IPSASsIPSASs



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What’s been issued….2006What’s been issued….2006

IPSAS 1, “Presentation of Financial Statements” IPSAS 1, “Presentation of Financial Statements” (Revised)(Revised)

IPSAS 3, “Accounting Policies, Changes in IPSAS 3, “Accounting Policies, Changes in Accounting Estimates and Errors” (Revised)Accounting Estimates and Errors” (Revised)

IPSAS 6, “Consolidated and Separate Financial IPSAS 6, “Consolidated and Separate Financial Statements” (Revised)Statements” (Revised)

IPSAS 7, “Investments in Associates” (Revised)IPSAS 7, “Investments in Associates” (Revised)

IPSAS 8, “Interests in Joint Ventures” (Revised)IPSAS 8, “Interests in Joint Ventures” (Revised)



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IPSAS 12, “Inventories” (Revised)IPSAS 12, “Inventories” (Revised)

IPSAS 13, “Leases” (Revised)IPSAS 13, “Leases” (Revised)

IPSAS 14, “Events After the Reporting Date” IPSAS 14, “Events After the Reporting Date” (Revised)(Revised)

IPSAS 16, “Investment Property” (Revised)IPSAS 16, “Investment Property” (Revised)

IPSAS 17, “Property, Plant and Equipment” IPSAS 17, “Property, Plant and Equipment” (Revised)(Revised)



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IPSAS 22, “Disclosure of Information about the IPSAS 22, “Disclosure of Information about the General Government Sector”General Government Sector”

IPSAS 23, “Revenue from Non-Exchange IPSAS 23, “Revenue from Non-Exchange Transactions (Taxes and Transfers)”Transactions (Taxes and Transfers)”

IPSAS 24, “Presentation of Budget Information in IPSAS 24, “Presentation of Budget Information in Financial Statements”Financial Statements”



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IPSAS 4, “The Effects of Changes in Foreign IPSAS 4, “The Effects of Changes in Foreign Exchange Rates” (Revised)Exchange Rates” (Revised)

IPSAS 21, “Impairment of Non-Cash-Generating IPSAS 21, “Impairment of Non-Cash-Generating Assets” (Revised)Assets” (Revised)

IPSAS 25, “Employee Benefits”IPSAS 25, “Employee Benefits”

IPSAS 26, “Impairment of Cash-Generating Assets”IPSAS 26, “Impairment of Cash-Generating Assets”

Cash Basis IPSAS, “Financial Reporting Under the Cash Basis IPSAS, “Financial Reporting Under the Cash Basis of Accounting” (Revised)Cash Basis of Accounting” (Revised)



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Today… next year… 5 years on….Today… next year… 5 years on….

• Adopted/AdoptingAdopted/Adopting–Switzerland, South Africa, –Switzerland, South Africa, Ghana, Philippines, Armenia, United NationsGhana, Philippines, Armenia, United Nations

We need to provide supportWe need to provide support• Benchmark – Benchmark – Canada, US, Australia, NZ, UKCanada, US, Australia, NZ, UK

We must collaborate to encourage convergenceWe must collaborate to encourage convergence• Leadership and Promotion – Leadership and Promotion – India, China India, China

We need to promote to encourage adoptionWe need to promote to encourage adoption



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IPSASB Strategic ThemesIPSASB Strategic Themes

• Public sector conceptual frameworkPublic sector conceptual framework

• Public sector specific projectsPublic sector specific projects

• IFRS ConvergenceIFRS Convergence

• Promotion and communicationsPromotion and communications



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Public Sector Conceptual FrameworkPublic Sector Conceptual Framework

Group 1 - - Objectives, Scope, Qualitative Objectives, Scope, Qualitative Characteristics, and Reporting EntityCharacteristics, and Reporting Entity

Group 2 - Elements of Financial Statements and Elements of Financial Statements and wider GPFRswider GPFRs

Group 3 – Measurement, presentation and Measurement, presentation and disclosuredisclosure

Group 4- Consequences for Cash BasisConsequences for Cash Basis



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Public Sector Conceptual FrameworkPublic Sector Conceptual Framework

• Group 1- Consultation paper issued Group 1- Consultation paper issued September 2008September 2008

• Group 2 – Definition & recognition of Group 2 – Definition & recognition of elements – Consultation Paper early elements – Consultation Paper early 20092009



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Public Sector Specific ProjectsPublic Sector Specific Projects• Social benefitsSocial benefits

• Long-term fiscal sustainabilityLong-term fiscal sustainability

• Service concession arrangementsService concession arrangements



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Social BenefitsSocial Benefits• Limited scopeLimited scope

• ED on disclosures of cash transfers to ED on disclosures of cash transfers to individuals/households issued February individuals/households issued February 20082008

• Consultation paper explaining positionConsultation paper explaining position

• Link to initiating long-term fiscal Link to initiating long-term fiscal sustainability projectsustainability project



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Long Term Fiscal SustainabilityLong Term Fiscal Sustainability• Early daysEarly days

• Task force met in early SeptemberTask force met in early September

• Initial discussion October 2008Initial discussion October 2008

• Consultation paper to be considered Consultation paper to be considered February 2009February 2009



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Service Concession ArrangementsService Concession Arrangements• Consultation paper issued March 2008Consultation paper issued March 2008

• Positive feedback on potential for global Positive feedback on potential for global solutionsolution

• Control approachControl approach

• Measure asset/liability at fair value of Measure asset/liability at fair value of propertyproperty

• DisclosuresDisclosures



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IFRS ConvergenceIFRS Convergence

• Target date December 31, 2009 of Target date December 31, 2009 of IFRS @ December 31, 2008IFRS @ December 31, 2008

• ““Rules of the Road” – guidelines for Rules of the Road” – guidelines for modifying and documenting departuresmodifying and documenting departures

• Relationship with IASB renewed focusRelationship with IASB renewed focus



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Development process…

IPSASs(Public sector)

IFRS(Private Sector) • Terminologies

•Public sector guideline

• Public sector issues1

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Financial InstrumentsFinancial Instruments

• Plan: 3 IPSASs in 2009 based on:Plan: 3 IPSASs in 2009 based on:– IAS 32 IAS 32 Financial Instruments – PresentationFinancial Instruments – Presentation– IAS 39 IAS 39 FI: Recognition & MeasurementFI: Recognition & Measurement– IFRS 7 IFRS 7 FI: DisclosureFI: Disclosure

• IPSASs will also address public sector IPSASs will also address public sector specific instruments and issuesspecific instruments and issues

• IPSAS 15 to be withdrawn when new IPSAS 15 to be withdrawn when new IPSASs issuedIPSASs issued

Financial Instruments



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Intangible AssetsIntangible 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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Entity CombinationsEntity 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 over next few yearsIPSASB over next few years

• IFRS convergence - notablyIFRS convergence - notably

• FIFI

• Entity combinationsEntity combinations

• Intangible assetsIntangible assets

• AgricultureAgriculture

• Annual improvementsAnnual improvements



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IPSASB over next few yearsIPSASB over next few years

• Conceptual frameworkConceptual framework

• Social benefits & long term fiscal Social benefits & long term fiscal sustainabilitysustainability

• Service concession arrangementsService concession arrangements

• Performance reporting – potential audit Performance reporting – potential audit issuesissues



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Partnerships WorkingPartnerships Working

• World Bank and Development Banks – World Bank and Development Banks – External External Assistance StandardAssistance Standard

• IMF – IMF – PPP StandardPPP Standard• IFAC – DNC – IFAC – DNC – External Assistance StandardExternal Assistance Standard• IASB – IASB – PPP Standard and Conceptual FrameworkPPP Standard and Conceptual Framework• National Standard Setters - National Standard Setters - PPP Standard and PPP Standard and

Conceptual FrameworkConceptual Framework• INTOSAI – INTOSAI – all of the above!all of the above!



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Keep up to date on IPSASB projectsKeep up to date on IPSASB projects

• IPSASB Project Pages – all IPSASB projects IPSASB Project Pages – all IPSASB projects http://www.ifac.org/PublicSector/

• IFAC eNews – Free electronic newsletterIFAC eNews – Free electronic newsletter– Enroll at Enroll at www.ifac.org



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International Federation of AccountantsInternational Federation of Accountantswww.ifac.org


Documents

IPSASBIPSASB 1 International Federation of Accountants International Public Sector Accounting Standards Board (IPSASB) Stuart Barr (Technical Advisor to