IPSAS Explained

A succinct, yet highly informative guide to IPSAS and their application

IPSAS Explained provides a concise summary of the International Public Sector Accounting Standards for practitioners needing to maintain compliance with ever-changing practices. Comprehensively updated to align with newly-accepted standards in key subject areas and including the latest iteration of the framework and improvement projects, this guide distills each standard into a useful and accessible format. Coverage of each IPSAS includes a brief overview of the basic principles behind it, as well as charts, graphs and tables that provide information at a glance.

Updated material includes discussion of the new IPSASB governance structure, including the Public Interest Committee and Consultative Advisory Group, as well as information on the current Exposure Drafts and the changes forthcoming from the Improvements Project. New sections on First-Time Adoption of Accrual Basis IPSAS, new consolidation standards and Service Performance Reporting bring practitioners completely up to date to help ensure full compliance.

• Locate relevant IPSAS quickly and easily

• Get up to date on newly adopted standards

• Deepen conceptual understanding with graphical representations

• Understand the operations of the IPSASB, as well as new and ongoing projects

The International Public Sector Accounting Standards Board is engaged in the ongoing process of bringing public sector accounting in line with the IPSAS, which largely align with the IFRS model: where an IFRS exists, it is either adopted directly or adjusted to be suitable for the public sector; where no relevant IFRS exists, the IPSASB issues an IPSAS. IPSAS Explained condenses and clarifies each IPSAS, providing context, background and practical guidance to help practitioners find the answers they need to comply.

Auteur

Thomas Müller-Marqués Berger (Stuttgart, Germany) is a partner at Ernst & Young GmbH and serves as the firm's Global Leader of International Public Sector Accounting.

Thomas was a member of the International Public Sector Accounting Standards Board (IPSASB) from January 2009 to December 2014. In January 2016 he became the Inaugural Chair of the IPSASB's Consultative Advisory Group (CAG) and in that role actively participates in IPSASB meetings. In June 2017, he was elected as CAG Chair for a term of three years. Since January 2011 he has served as Chair of the Public Sector Group of Accountancy Europe (former Fédération des Experts Comptables Européen (FEE)). In that capacity, he is a standing observer of the Eurostat EPSAS Working Group and contributes to the work of the EPSAS Cells.

Résumé
A succinct, yet highly informative guide to IPSAS and their application IPSAS Explained provides a concise summary of the International Public Sector Accounting Standards for practitioners needing to maintain compliance with ever-changing practices. Comprehensively updated to align with newly-accepted standards in key subject areas and including the latest iteration of the framework and improvement projects, this guide distills each standard into a useful and accessible format. Coverage of each IPSAS includes a brief overview of the basic principles behind it, as well as charts, graphs and tables that provide information at a glance. Updated material includes discussion of the new IPSASB governance structure, including the Public Interest Committee and Consultative Advisory Group, as well as information on the current Exposure Drafts and the changes forthcoming from the Improvements Project. New sections on First-Time Adoption of Accrual Basis IPSAS, new consolidation standards and Service Performance Reporting bring practitioners completely up to date to help ensure full compliance.

• Locate relevant IPSAS quickly and easily
• Get up to date on newly adopted standards
• Deepen conceptual understanding with graphical representations
• Understand the operations of the IPSASB, as well as new and ongoing projects The International Public Sector Accounting Standards Board is engaged in the ongoing process of bringing public sector accounting in line with the IPSAS, which largely align with the IFRS model: where an IFRS exists, it is either adopted directly or adjusted to be suitable for the public sector; where no relevant IFRS exists, the IPSASB issues an IPSAS. IPSAS Explained condenses and clarifies each IPSAS, providing context, background and practical guidance to help practitioners find the answers they need to comply.

Contenu
I. Introduction: General information about IPSASs and the IPSASB 1

1 The International Public Sector Accounting Standards Board 1

1.1 General information 1

1.2 Structure and organization of IPSASB 2

1.3 Objectives of the IPSASB 4

1.4 Governance and oversight of the IPSASB 5

1.5 Members of the IPSASB 7

1.6 The strategy and work plan of the IPSASB 8

2 International accounting standards for the public sector 10

2.1 Overview of international accounting standards for the public sector 10

2.2 History of the International Public Sector Accounting Standards 14

2.3 Applicability of the International Public Sector Accounting Standards 15

2.4 General purpose financial statements 16

2.5 Authority of the International Public Sector Accounting Standards 17

2.6 IPSASs for accrual basis of accounting and cash basis of accounting 19

2.7 Background to the application of international accounting standards for the public sector 19

2.8 Provisions for the transition from the cash basis to the accrual basis of accounting 21

2.9 Procedures for developing accounting standards 22

2.10 Process for reviewing and modifying IASB documents 24

2.11 Process for considering GFS reporting guidelines during development of IPSASs 25

2.12 Current projects of the IPSASB 25

3 IPSASB's Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities 28

3.1 Background 28

3.2 Key characteristics of the public sector 30

3.3 Role and authority of the Framework 30

3.4 Objectives and users of general purpose financial reporting 31

3.5 Qualitative characteristics 32

3.6 Reporting entity 33

3.7 Elements in the financial statements 34

3.8 Recognition in financial statements 36

3.9 Measurement of assets and liabilities in financial statements 37

3.10 Presentation in GPFRs 44

II. Costs versus benefits of implementing accrual accounting in the public sector 47

1 Cost-benefit assessments for implementation 47

2 Summary of expected benefits and positive impacts of implementing IPSASs 48

3 Expected costs of implementing IPSASs 51

4 Expected challenges of IPSAS implementation 53

III. International developments in public sector accounting 57

1 Africa 57

1.1 Current situation in Africa 57

1.2 Reform movements underway in Africa 59

1.3 Outlook 64

2 Europe 65

2.1 Current situation in Europe 65

2.2 Reform movements underway in Europe 68

2.3 Current status of the EPSAS project 70

2.4 EPSAS framework and governance 72

3 Latin America and the Caribbean 75

3.1 Current situation in Latin America and the Caribbean 75

3.2 Reform movements underway in LAC 76

3.3 Outlook 82

IV. Overview of accrual basis IPSASs 85

IPSAS 1: Presentation of Financial Statements 85

IPSAS 2: Cash Flow Statement 92

IPSAS 3: Accounting Policies, Changes in Accounting Estimates and Errors 97

IPSAS 4: The Effects of Changes in Foreign Exchange Rates 102

IPSAS 5: Borrowing Costs 105

IPSAS 6: Consolidated and Separate Financial Statements 108

IPSAS 7: Investments in Associates 114

IPSAS 8: Interests in Joint Ventures 118

IPSAS 9: Revenue from Exchange Transactions 122

IPSAS 10: Financial Reporting in Hyperinflationary Economies 127

IPSAS 11: Construction Contracts 129

IPSAS…