Report by International Public Sector Accounting Standards … · · 2016-03-29Report by International Public Sector Accounting Standards Board (IPSASB) Mike Hathorn Chair IPSASB.

Report by International Public Sector

Accounting Standards Board (IPSASB)

Mike Hathorn

Chair

IPSASB

IFAC IPSASB

2IPSASB UPDATE

Overview

• Background

• Recent exposure drafts & pronouncements

• Revised strategic themes

• Current projects

• Proposed new projects

IFAC IPSASB

3IPSASB UPDATE

IFAC IPSASB

IPSASB• Develops International Public Sector Accounting

Standards (IPSASs) - cash and accrual

• 24 Accrual Basis IPSASs and a Comprehensive Cash

Basis IPSAS

• Facilitates convergence of national and international

public sector standards

• Financial support from World Bank, ADB, UN, EC,

Canadian, Chinese, NZ and Swiss governments, CICA

• Relocation to Toronto

IFAC IPSASB

4IPSASB UPDATE

IPSASB Process

• Meetings 3 times per year

• Open to the public

• Materials available to those registered

• Transparent consultative due process with minimum 4 month exposure periods

IFAC IPSASB

5IPSASB UPDATE

Available on the IPSASB Web Site:

• All IPSASs (24 accrual plus 1 cash basis)

– (including Spanish and French translations)

• All current Exposure Drafts and other publications

• IPSASB Meeting Highlights

• IPSASB E-Mail

• IPSASB Agenda Papers (before each meeting)

FREE OF CHARGE AT: WWW.IPSASB.ORG

IFAC IPSASB

6IPSASB UPDATE

IPSASB Members 2007

Accounting Profession -15 members

UK (Chair), Argentina, Australia, Canada, China, France, India, Israel, Japan, Mexico, Netherlands,New Zealand, Norway, South Africa, USA

Public Members -3

Italy, Switzerland, USA

ObserversADB, EU, IASB, IMF, INTOSAI, OECD, UN, UNDP, World Bank

IFAC IPSASB

7IPSASB UPDATE

Adoption

• UN System (28 bodies)

• OECD, NATO (21 bodies), EC, IFAC,

INTERPOL

• 58 countries have agreed processes or have a

project in place to adopt IPSASs or align with

IPSASs

IFAC IPSASB

8IPSASB UPDATE

Recent exposure drafts and pronouncements

• ED 32, “ Financial Reporting under the Cash Basis of

Accounting-Disclosure Requirements for Recipients of

External Assistance”.

• IPSAS 22, “Disclosures 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”

• Revision to 11 accrual basis IPSASs and revised Preface

IFAC IPSASB

9IPSASB UPDATE

IPSAS 23: Non-exchange Revenue

(1)

• IPSAS 23 issued in January 2007

• Key principles of ED 29 retained

• Some modifications of emphasis, presentation

and format in areas such as:

– Social security contributions

– In-kind services

– Transitional provisions

IFAC IPSASB

10IPSASB UPDATE

IPSAS 23: Non-exchange Revenue (2)

• Asset/liability approach

• Assets recognized from non-exchange transactions initially measured at fair value at date of acquisition

• Stipulations -conditions and restrictions

• Conditions - both performance and return obligations

– Unfulfilled conditions give rise to liabilities

• Five year transitional provision for taxes/Three years for other non-exchange transactions

IFAC IPSASB

11IPSASB UPDATE

Revised Strategic Themes

• Conceptual framework for public sector

• Public sector specific issues including

convergence with statistical bases where

appropriate

• IFRS convergence

• Promotion & communication

IFAC IPSASB

12IPSASB UPDATE

Conceptual Framework (1)

• Objective to develop a public sector conceptual

framework

• Collaborative project with National Standard-

Setters

• Divergence from IASB framework only where

necessary to reflect public sector differences

• Stand-alone framework will be more than an

interpretation

IFAC IPSASB

13IPSASB UPDATE


• IPSASB Co-ordination and Leadership

• Process: Consultation Papers followed by

omnibus ED

• Four groups of Consultation Papers

• First Consultation Papers late 2007/early 2008

• ED: 2011

• Full framework: 2012

IFAC IPSASB

14IPSASB UPDATE


Group 1 Consultation Papers

• Objectives of financial reporting (United

Kingdom ASB)

• Scope of financial reporting (South African ASB)

• Qualitative Characteristics (Norway NIPA)

• Reporting Entity (Australian AASB)

IFAC IPSASB

15IPSASB UPDATE

Service Concessions

• Collaborative project involving NSS and Other

Bodies, including the OECD

• Primary resources to be provided by US GASB

• IFRIC Interpretation (IFRIC 12) deals only with

operators

• Survey

• Close collaboration with IASB/IFRIC (IFRIC

representative on subcommittee)

IFAC IPSASB

16IPSASB UPDATE

Likely New Projects for Initiation in 2007

• Firm decision to be made at March 2007 IPSASB Meeting

– Heritage Assets

– Financial Instruments

– Business Combinations

– Fair value

– Non-current Assets Held for Sale and Discontinued

Operations

– Updating of existing IPSASs

International Federation of Accountants

www.ifac.org

IFAC IPSASB

18IPSASB UPDATE

ATTACHMENTS

IFAC IPSASB

19IPSASB UPDATE

Budget Reporting

• IPSAS 24 “Presentation of Budget Information in

Financial Statements” accrual basis

• Amendments to Cash Basis IPSAS – additional

section 1.10 “Presentation of Budget Information in

Financial Statements”

IFAC IPSASB

20IPSASB UPDATE

Budget Reporting

• Prior – budget information comparison encouraged

only if on same basis

• Entities making budgets publicly available (does not

require public availability)

• Basis of preparation does not need to be the same

• Comparison is on the basis of the budget

• Effective date January 1 2009 – earlier adoption

encouraged

IFAC IPSASB

21IPSASB UPDATE

Budget Reporting

• Comparison of actual amounts to both original and final budget (separate financial statement if not same basis)

• Explanation of material differences - financial statements or x-ref public documents

• Reconciliation of budget based actual with financial statement actual when bases differ

• Explanation of differences between original and final budget - financial statements or x-ref public documents

IFAC IPSASB

22IPSASB UPDATE

Disclosure of External

Assistance (Cash Basis)

• OECD and Multilateral Development Banks -harmonize/reduce compliance costs

• Differing views

• Approved revised ED:

– required and encouraged disclosures

– field testing ED

IFAC IPSASB

23IPSASB UPDATE

Social Policy Obligations

• Reservations over extent of liability recognized &

mirroring of existing approaches

• Reservations reinforced by majority view in FASAB

Preliminary Issues Paper

• Change of approach to presentation and disclosure

(would exclude recognition)

• Present obligation for cash transfers when all

eligibility criteria have been met

IFAC IPSASB

24IPSASB UPDATE

Social Policy Obligations

• Disclosed liability: present value of future cash

flows to all eligible participants at reporting date

• No present obligation in respect of individual goods

and services (e.g. education and health)

• Not a fiscal sustainability statement

• Acknowledgement of importance of fiscal

sustainability statements and will be addressed

initially in conceptual framework project

• Approach early step - not last word

IFAC IPSASB

25IPSASB UPDATE

Heritage Assets

• Currently no requirement to recognize

• If recognize, disclose based on IPSAS 17

• Permitted to use IPSAS 17 measurement approach

• Range of Responses to February 2006 Consultation Paper

• Project brief to March meeting

• Separate ED/Standard or amendment to IPSAS 17?

IFAC IPSASB

26IPSASB UPDATE

General Improvements Project

• December 2003 - IASB’s Improvements Project –

reduce or eliminate alternative, redundancies and

conflicts

• Deal with some convergence issues

• Black and grey letters equal authority

• Clarify hierarchy

• Make other improvements

Report by International Public Sector Accounting Standards … · · 2016-03-29Report by International Public Sector Accounting Standards Board (IPSASB) Mike Hathorn Chair IPSASB.

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