The International Public Sector Accounting Standards Board (IPSASB) has issued a revised IPSAS, Financial Reporting under the Cash Basis of Accounting. The amendments address some of the main barriers to adoption of this standard.  

This revised version of the Cash Basis IPSAS implements the proposals made in Exposure Draft 61, Amendments to Financial Reporting under the Cash Basis of Accounting.

The revised version takes effect on January 1, 2019, with earlier adoption encouraged.

The International Public Sector Accounting Standards Board^® (IPSASB^®) has published a revised IPSAS, Financial Reporting under the Cash Basis of Accounting (the Cash Basis IPSAS). The amendments address some of the main barriers to adoption of this standard.  

This revised version of the Cash Basis IPSAS implements the proposals made in Exposure Draft 61, Amendments to Financial Reporting under the Cash Basis of Accounting. These amendments recast from mandatory to voluntary:

• Preparation of consolidated financial statements;
• Disclosure of information about external and other assistance; and
• Disclosure of information about payments made by third parties.

The amendments also ensure that the standard’s requirements and encouragements are better aligned with requirements in relevant accrual IPSAS issued since 2008.

The revised version takes effect on January 1, 2019, with earlier adoption encouraged.

“These amendments respond to the views of preparers by removing some of the obstacles to adoption of the Cash Basis IPSAS,” said IPSASB Chair Ian Carruthers. “Robust financial reporting on a cash basis can be an important foundation for broader improvements in public sector financial management. However, the revisions make clear that the IPSASB views the Cash Basis IPSAS as an important stepping stone on the journey to full accrual accounting rather than an end in itself.”

First issued in 2003, and modified in 2006 and 2007, the Cash Basis IPSAS is the only IPSASB pronouncement that deals with the cash basis of accounting. 

About the IPSASB

The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through the development of accrual-based International Public Sector Accounting Standards® (IPSAS®) and other guidance for use by governments and other public sector entities. It 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.

The International Public Sector Accounting Standards Board^® (IPSASB^®) has released for public comment Exposure Draft (ED) 63, Social Benefits, which addresses accounting for the delivery of social benefits, such as retirement, unemployment, and disability.

 These proposals aim to improve consistency, transparency, and reporting by public sector entities of social benefit schemes, which account for a large portion of government expenditure in most jurisdictions.

Existing International Public Sector Accounting Standards^® (IPSAS^®) do not provide requirements or guidance on how to account for social benefits, leaving users without the information needed to assess government performance.

“Social benefits are a major expenditure for most governments, and the absence of an IPSAS standard for these programs is a noted gap in the Board’s literature,” said IPSASB Chair Ian Carruthers. “The proposals in ED 63 will enhance accountability and transparency and improve decision making in this critical public interest area.”

ED 63 defines social benefits and proposes requirements for the recognition and measurement of social benefit schemes. It also proposes disclosure requirements that provide additional information for users to evaluate the effect of social benefits on future government finances.

Comments on the Exposure Draft are requested by March 31, 2018.

How to Comment
To access the Exposure Draft and its summary At-a-Glance document, or to submit a comment, visit the IPSASB website at www.ipsasb.org. Comments on the Exposure Draft are requested by March 31, 2018. The IPSASB encourages IFAC member organizations and regional accountancy organizations to promote the availability of this Exposure Draft to their members and employees.

About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through the development of accrual-based International Public Sector Accounting Standards® (IPSAS®) and other guidance for use by governments and other public sector entities. It 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.

The International Public Sector Accounting Board (IPSASB) held its third meeting of the year from September 19-22 in Toronto.

Highlights from the IPSASB's September 19 - 22, 2017, meeting in Toronto, Canada.

0:11   --   Introduction and welcome (John Stanford, Technical Director)

0:50   --   Overview of meeting (Ian Carruthers, Chair)

3:44   --   Strategy and Work Plan (Ross Smith, Deputy Director)

5:01   --   Social Benefits (Paul Mason, Principal)

8:06   --   Cash Basis IPSAS (Joanna Spencer, Manager, Standards Development and Technical Projects)

9:21   --   Leases (João Fonseca, Manager, Standards Development and Technical Projects)

11:12  --  Final thoughts (Ian Carruthers, Chair)

12:26  --  Closing remarks (John Stanford, Technical Director)

The International Public Sector Accounting Standards Board (IPSASB) is pleased to announce the re-appointment of its Chair, Ian Carruthers, for a second three-year term commencing January 1, 2019. As Chair, Mr. Carruthers will continue to lead the Board as it establishes high-quality accounting standards for use by public sector entities, promote adoption and implementation of International Public Sector Accounting Standards (IPSAS), and issue guidance on public sector financial reporting. The Nominating Committee reappointed Mr. Carruthers early in his tenure to ensure leadership continuity as global adoption of IPSAS continues to advance.

“Mr. Carruthers has been an exemplary leader of the IPSASB, improving the strategic focus of the Board and efficiency of its activities, and deepening stakeholder relationships,” said James Gunn, Managing Director, Professional Standards. “Ian’s reappointment is welcomed at this important period for the IPSASB, and will help ensure continuity in dialogue with stakeholders as adoption decisions are considered in key nations and regions over the coming years.”

“I am honored to have been reappointed to continue to lead the IPSASB in helping to strengthen public sector financial management globally,” said Mr. Carruthers. “As IPSASB celebrates 20 years of standard setting, we are now addressing some of the most challenging public sector accounting issues, while ensuring our existing standards continue to suit the increasing complexity faced by the sector. We are also continuing to raise awareness of the benefits of adopting the standards for public sector accountability, transparency and sound decision making.”

After spending the first part of his career in PwC’s public sector practice, Mr. Carruthers joined HM Treasury in 1999, where he played a key role in the UK Government’s transition from cash to accrual budgeting and reporting, in particular leading its Whole of Governments Accounts program. In 2006, he joined the Chartered Institute of Public Finance and Accountancy (CIPFA), where he led CIPFA’s work on the role of CFOs in the public sector as well as working with IFAC on the development of the joint International Framework for Good Governance in the Public Sector. Mr. Carruthers continues to work with CIPFA, serving as its part-time Chair, Standards.

About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through the development of accrual-based International Public Sector Accounting Standards^® (IPSAS^®) and other guidance for use by governments and other public sector entities. It 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.

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

This Handbook contains the complete set of the International Public Sector Accounting Standards Board pronouncements, the International Public Sector Accounting Standards, published as of January 31, 2017. It also includes the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities.

The International Public Sector Accounting Standards Board (IPSASB) has issued Exposure Draft 62, Financial Instruments.

This Exposure Draft proposes new simplified classification and measurement requirements for financial assets, a forward looking impairment model and a flexible principle-based hedge accounting model.