The International Public Sector Accounting Standards Board has welcomed the B20 Policy Recommendations to the G20, published earlier this week. The report includes 22 policy recommendations to the G20 identified by the global business community to support healthy economies and build back better from the COVID-19 pandemic.
“The global economy is in its worst state in a century,” wrote Yousef Al-Benyan, chairman of the B20. “The challenging opportunity is to build back better, with real urgency required from policymakers and business leaders…Building back better requires deepening public, private and citizen cooperation.”
Among the priorities identified by the B20 is combatting corruption through enhancing integrity in the public sector. The report states that, “the G20 should lead the way in the global application of accrual accounting in the public sector, and in particular International Public Sector Accounting Standards.”
“We’re delighted to see our standards named among the top B20 priorities,” said IPSASB Chair Ian Carruthers. "The COVID-19 pandemic is proving to be one of the greatest challenges that many governments have ever faced, and because of its magnitude its impact will be felt for many years to come. Without high-quality accounting information, politicians will struggle to make the tough decisions that will be required to support both citizens’ wellbeing and economic recovery sustainably over the decades to come,” he added.
To help governments apply best practices in public sector accounting when analyzing COVID-19-related intervention programs, wherever they are on the path to full accrual implementation, IFAC and the Zurich University of Applied Science (ZHAW), in partnership with IPSASB, published an Intervention Assessment Tool earlier this year.
The role of accountancy in managing the public sector impacts of the pandemic has also been an area of focus for the global profession. “At a time of enormous public sector spending, accountability in the public sector has become even more central to the social contract between governments and citizens,” wrote Sheila Fraser, IFAC Board Member and former Auditor General of Canada and Alta Prinsloo, IFAC Executive Director, in an article highlighting the importance of public sector resiliency as part of the G20 agenda.
“Building a strong public sector requires the contribution of a wide range of stakeholders. The accountancy profession remains ready to play its part,” they wrote.
The B20, representing the international business community, advocates for bold and broad-based policy action that will put recovery on a stronger, more stable growth path and benefit all. Its policy recommendations will be presented to the G20 for further consideration during the B20 Summit later this month.
About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.
About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.
