Thank you, Tim, for the introduction. Good afternoon, ladies and gentlemen. It is a pleasure and a privilege to be here today. I note that I am in the after-lunch panel, I am the last of four speakers, and my topic is accounting. Not a good start!

My topic is government transparency and the role financial reporting standards can play. I will draw particular attention to IPSASs, but I will come to that rather than start there. The subject of this panel discussion is "New Rules and Regulations for All." My component of this session is not so much new as more necessary and more urgent than ever before.

The International Public Sector Accounting Standards Board (IPSASB) today released for comment an exposure draft (ED), Key Characteristics of the Public Sector with Potential Implications for Financial Reporting. The paper provides background on issues affecting the development of a conceptual framework for public sector entities and standard setting. In particular, it highlights that public sector entities are likely to depend upon taxation rather than commercially generated profits for their continued existence—and have governance arrangements that generally involve a legislative body holding an executive to account.

The paper is geared toward those who may have limited familiarity with the public sector, particularly those with more experience of financial reporting in the private sector—both for- profit and not-for-profit entities.

One of the main objectives of governments and other public sector entities is to deliver goods and services—not to produce profits, as in the private sector. As a result, there are a large number of financially significant non-exchange transactions in the public sector. These include outflows, such as state pension and social security payments, and inflows from taxation and transfers from other levels of government. However, the paper notes that there are a large number of transactions in the public sector that mirror those in the private sector, and that in such cases, there is no reason why accounting treatments should differ between the two sectors.

The paper also considers the importance of the budget in many jurisdictions. It is often the primary mechanism for communicating with citizens and demonstrating compliance with legal requirements.

Other areas explored include the specialized nature of much of the property, plant, and equipment deployed in the public sector, the regulatory role of government, the responsibilities for a nation’s or area’s heritage, the longevity of most governments and many public sector entities, and the ownership or control of rights to natural resources. The paper also notes that for governments, reporting under statistical bases of accounting is highly important for decision-making purposes and economic analysis.

“When government and public sector financial reporting is mentioned, you often hear a view that the public sector is different; sometimes differences can be exaggerated or underestimated. This exposure draft tries to identify areas that really do need to be considered by standard setters when developing the concepts for public sector financial reporting. We are interested to hear stakeholder views on whether we have identified the right areas,” said IPSASB Chair Andreas Bergmann.

How to Comment
To access the exposure draft or to submit a comment, visit the IFAC website at www.ifac.org/Guidance/EXD-Outstanding.php. Comments on the exposure draft are requested by August 31, 2011. The IPSASB invites all stakeholders to comment on the exposure draft.

About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. The structures and processes that support the operations of the IPSASB are facilitated by IFAC.

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. It is comprised of 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

The International Public Sector Accounting Standards Board (IPSASB) published today its 2011 Handbook of International Public Sector Accounting Pronouncements. In two volumes, the Handbook contains all current IPSASB pronouncements, including 31 accrual-based standards and the IPSASB's cash basis standard. The 2011 Handbook incorporates the amendments made as a result of the IPSASB’s 2010 Improvements Project, as well as?at the beginning of each accrual-based standard?a history of the amendments made to that standard.

“The 2011 Handbook provides a comprehensive set of accounting requirements and guidance developed specifically for preparers of public sector financial statements,” said IPSASB Chair Andreas Bergmann. “In addition, the Handbook has been updated to reflect the IPSASB’s Improvements Project, completed in November 2010.”

How to Order
The Handbook can be downloaded in PDF format from the Publications and Resources page of the IFAC website. Print copies of volumes I and II of the Handbook are also available; however, shipping and handling charges apply. Orders can be placed at web.ifac.org/publications or by calling IFAC at +1 (212) 286-9344.

About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. The structures and processes that support the operations of the IPSASB are facilitated by IFAC.

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 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

In two volumes, the Handbook contains all current IPSASB pronouncements, including 31 accrual-based standards and the IPSASB's cash basis standard.

Thank you for the introduction Caroline, and for the kind welcome. Good morning, ladies and gentlemen. It is a great pleasure to be here; my congratulations to CIPFA for organizing such an excellent conference.

The overall theme of this conference is trust and accountability in public financial management. The incoming Chairman of the IASB, Hans Hoogervorst, said at a recent conference in Brussels, “Without transparency, there can be no enduring stability.” I believe that without transparency, neither can there be trust or accountability. And as a basis for what follows, I should be clear that a crucial element of transparency in the public sector is accrual accounting.

Thank you, Tony for the introduction. Good morning everyone.

It is always a pleasure to be in Melbourne. And it is a particular pleasure to be participating in this convention, both as a member of CPA Australia, and someone who, admittedly a very long time ago, was on the public sector committee of the Tasmanian branch.

Thinking about what to cover in this presentation lead me to a personal reflection on what has been achieved in governmental financial reporting over the past 40 years, where we are now, and what remains to be done. Even as a very new graduate in accounting, working in the public service in New Zealand 40 years ago, I could not understand why governments did not seem to use good accounting information.

International Public Sector Accounting Standards Board Chair Andreas Bergmann on plans for a global public sector accounting framework.

This study is intended to assist governments and government entities wishing to migrate to the accrual basis of accounting in accordance with International Public Sector Accounting Standards (IPSASs). It may also assist governments and government entities complying with the financial reporting requirements of the Cash Basis IPSAS Financial Reporting Under The Cash Basis of Accounting in making the additional encouraged disclosures.