INTRODUCTION

International Public Sector Accounting

Standards(IPSAS)
FACILITATOR: MR C.SIMON
Qualifications
• PhD Candidate
• MAcc (UZ)
• BAcc (BUSE)
• Dip. Accounting & Business Management (CPM)
Contact Details
[email protected]
 What are IPSASs?
• IPSAS are accounting standards for use by public sector entities in the
preparation of general purpose financial reports developed by the
International Public Sector Accounting Standards Board (IPSAB)
• The IPSAB develops and issues IPSASs dealing with financial reporting
under the cash basis of accounting and the accrual basis of
accounting.
• The accrual IPSASs are based on the International Financial Reporting
Standards (IFRSs), issued by the International Accounting Standards
Board(IASB) where the requirements of those standards are
applicable to the public sector.
• They also deal with public sector specific financial reporting issues
that are not dealt with in IFRSs.
Cont`
• IPSASs set out requirements dealing with transactions and other
events in general purpose financial reports(GPFRs)
• GPFRs are financial reports intended to meet the information needs
of users who are unable to require the preparation of financial
reports tailored to meet their specific information needs.
Criteria for meeting a Public sector entity
• IPSASs are designed to apply to public sector entities that meet all the
following criteria;
a) Are responsible for the delivery of goods, services and policy advice
that benefit the public and/or to redistribute income and wealth
b) Mainly finance their activities, directly or indirectly, by means of
taxes and/or transfers from other levels of government, social
contributions, debt or fees; and
c) Do not have a primary objective to make profits.
Cont`
IPSASs apply to GPFRs of the following examples
a) National, regional, state/provincial and local governments
b) Government ministries, departments, programs, boards,
commissions, agencies;
c) Public sector social security funds, trusts, and statutory authorities
d) International governmental organizations
The Cash Basis IPSAS
• It encourages the entity to voluntarily disclose accrual based
information, although its core financial statements will nonetheless
be prepared under the cash basis of accounting
• An entity in the process of moving from cash accounting to accrual
accounting may wish to include particular accrual based disclosures
during this process
Cont`
• The IPSAB encourages the adoption of IPSASs and the harmonization
of national requirements with IPSASs
• Financial statements should be described as complying with IPSASs
only if they comply with all the requirements of each applicable
IPSAS.
The International Federation of
Accountants`(IFAC) role in IPSAS
• In pursuing its mission, the IFAC Board has established the IPSAB to
function as an independent standard-setting board under the auspices of
IFAC
• The IFAC serves the interest of the public by contributing to the
development of strong and sustainable organizations, markets and
economies
❑ The role of the IFAC among others is;
a) Advocating for transparency, accountability and comparability of financial
reporting,
b) Helping to develop strong professional accountancy organizations and
accounting firms,
c) Communicating the importance and value of accountants to the global financial
infrastructure
 IFAC role in IPSAS development
i. IFAC contributes to the development, adoption and
implementation of high-quality IPSAS primarily through its support
for IPSASB.
ii. Provides human resources to IPSASB
iii. Provides facilities management to IPSAB
iv. Provides communication support to IPSAB
v. Provides funding to this independent standard setting board(IPSAB)
vi. Facilitates the nominations and selection process of IPSAB board
members.
List of each IPSAS and its equivalent IFRS
IPSAS Narration Based on;
IPSAS 1 Presentation of Financial Statements IAS 1
IPSAS 2 Cash Flow Statements IAS 7
IPSAS 3 Accounting Policies, Changes in Accounting IAS 8
Estimates and Errors
IPSAS 4 The Effects of Changes in Foreign Exchange IAS 21
Rates
IPSAS 5 Borrowing Costs IAS 23
IPSAS 6 Consolidated and Separate Financial Statements IFRS 10/IFRS3/
IAS27
IPSAS 7 Investments in Associates IAS 28
IPSAS 8 Interests in Joint Ventures
IPSAS 9 Revenue from Exchange Transactions IFRS 15/IAS18
List of each IPSAS and its equivalent IFRS
IPSAS Narration Based on;
IPSAS 11 Construction Contracts IFRS15
IPSAS 12 Inventories IAS 2
IPSAS 13 Leases IFRS 16
IPSAS 14 Events after the Reporting Date IAS 10
IPSAS 15 Financial Instruments: Disclosure and IFRS7&9/IAS32
Presentation
IPSAS 16 Investment Property IAS 40
IPSAS 17 Property, Plant, and Equipment IAS 16
IPSAS 18 Segment Reporting IFRS 8
IPSAS 19 Provisions, Contingent Liabilities and Contingent IAS 37
Assets
IPSAS 20 Related Party Disclosures IAS 24
 List of each IPSAS and its equivalent IFRS
IPSAS Narration Based on;
IPSAS 21 Impairment of Non-Cash-Generating Assets IAS 36
IPSAS 22 Disclosure of Financial Information about the N/A
General Government Sector
IPSAS 23 Revenue from Non-Exchange Transactions (Taxes N/A
and Transfers)
IPSAS 24 Presentation of Budget Information in Financial N/A
Statements
IPSAS 25 Withdrawn
IPSAS 26 Impairment of Cash-Generating Assets IAS 36
IPSAS 27 Agriculture IAS 41
IPSAS 28 Financial Instruments: Presentation IAS 32
IPSAS 29 Financial Instruments: Recognition and IAS 39
Measurement
List of each IPSAS and its equivalent IFRS
IPSAS Narration Based on;
IPSAS 30 Financial Instruments: Disclosures IFRS 7
IPSAS 31 Intangible Assets IAS 36
IPSAS 32 Service Concession Arrangements: IAS20
Grantor
IPSAS 33 First-time Adoption of Accrual Basis IPSASs IFRS 1
IPSAS 34 Separate Financial Statements IAS 27
IPSAS 35 Consolidated Financial Statements IFRS 10
IPSAS 36 Investments in Associates and Joint Ventures IAS 28
IPSAS 37 Joint arrangements IFRS 11
IPSAS 38 Disclosure of Interests in Other Entities IFRS 12
IPSAS 39 Employee Benefits IAS 19