This document sets out amendments to IPSASs and the related Bases for Conclusions, Comparisons with IFRSs/IASs, and guidance. These amendments are drawn from the IASB document, Improvements to IFRS issued in May 2008. The IASB's rationale for its amendments is documented in the related Bases for Conclusions in the IASB's document, Improvements to IFRS.

 The International Public Sector Accounting Standards Board (IPSASB) has published three new standards that cover all aspects of the accounting for and disclosure of financial instruments: International Public Sector Accounting Standard (IPSAS) 28, Financial Instruments: Presentation; IPSAS 29, Financial Instruments: Recognition and Measurement; and IPSAS 30, Financial Instruments: Disclosures. They fill a significant gap in the IPSASB literature.

"These new IPSASs provide a coherent set of requirements that enhance accountability for financial instruments in the public sector; this need was reinforced by the global financial crisis, and the scale and range of interventions made by governments," states Andreas Bergmann, who became Chair of the IPSASB on January 1, 2010.

The three new IPSASs are primarily drawn from the International Accounting Standards Board's standards, but address a number of public sector-specific issues:

• IPSAS 28, Financial Instruments: Presentation, primarily draws on IAS 32 and establishes principles for presenting financial instruments as liabilities or equity, and for offsetting financial assets and financial liabilities.
• IPSAS 29, Financial Instruments: Recognition and Measurement, primarily draws on IAS 39, establishing principles for recognizing and measuring financial assets, financial liabilities, and some contracts to buy or sell non-financial items.
• IPSAS 30, Financial Instruments: Disclosures, draws on IFRS 7 and requires disclosures for the types of loans described in IPSAS 29. It enables users to evaluate: the significance of the financial instruments in the entity's financial position and performance; the nature and extent of risks arising from financial instruments to which the entity is exposed; and how those risks are managed.

These IPSASs address some key public sector issues, including financial guarantee contracts provided for nil or nominal consideration and concessionary loans.

• Financial guarantee contracts provided for nil or nominal consideration have been a feature of government interventions during the global crisis--often, they are for very large amounts and could not be provided by private sector guarantors. IPSAS 29 provides guidance on the accounting treatment of such guarantees, both at initial recognition and subsequently.
• Concessionary loans are granted or received at below market terms, often for social policy objectives. IPSAS 29 provides guidance on the determination of fair value. It also addresses the treatment of the difference between the fair value of a loan and the loan proceeds. IPSAS 30 requires disclosures relating to such loans.

"The IPSASB recognizes the need to closely monitor global developments in the accounting for financial instruments and to evaluate such changes promptly in a public sector context," says Mr. Bergmann, adding that, together with the soon-to-be-issued IPSAS on intangible assets, IPSASs 28-30 represent the substantial attainment of IPSAS convergence with IFRSs (dated December 2008).

IPSASs 28-30 are available to download free of charge from the IPSASB section of IFAC's Publications and Resources site (web.ifac.org/publications). The IPSASB encourages IFAC members, associates, regional accountancy bodies, and firms to use these materials and to promote their availability to members and employees.

About IFAC
IFAC (www.ifac.org) 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 159 members and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.

At its December 8-11 meeting in Rome, the International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) achieved its strategic goal of substantial convergence with the International Financial Reporting Standards (IFRSs) dated December 31, 2008, with a series of new or improved standards.

Three of these new International Public Sector Accounting Standards (IPSASs) deal with financial instruments—in terms of presentation, recognition and measurement, and disclosures. A fourth standard covers intangible assets and an improvements standard makes minor changes to existing IPSASs. They are primarily drawn from IFRSs, with limited changes dealing with public sector-specific issues. In addition, the board approved an exposure draft covering service concessions.

“In the current global economic environment, when governments are increasingly raising debt through the capital markets as a result of their financial interventions in the private sector, the need for certainty in the application of well-developed financial instruments standards has particular urgency,” states Mike Hathorn, Chair of the IPSASB. “Achieving convergence is also crucial to enhancing transparency at this time of large scale government interventions,” he adds.

The December 2009 meeting was the last under Mr. Hathorn’s chairmanship; his three-year term ends on December 31, 2009—a period that has seen a significant increase in momentum in global interest in and adoption of IPSASB standards.  “During the last 12 months in particular, the achievement of the board and its staff in progressing convergence with IFRSs standards has been outstanding—and I am confident that it will meet the increasing needs of the global public sector in the future,” he concludes.

The new standards and exposure draft will be available to download free of charge from the IFAC website (web.ifac.org/publications) in January 2010.

About IFAC
IFAC (www.ifac.org) 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 159 members and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.

The International Public Sector Accounting Standards Board (IPSASB) has taken a further step in its global convergence program with International Financial Reporting Standards (IFRSs), scheduled for completion by December 31, 2009, by issuing International Public Sector Accounting Standard (IPSAS) 27, Agriculture. IPSAS 27 provides requirements for accounting for agricultural activity.The International Public Sector Accounting Standards Board (IPSASB) has taken a further step in its global convergence program with International Financial Reporting Standards (IFRSs), scheduled for completion by December 31, 2009, by issuing International Public Sector Accounting Standard (IPSAS) 27, Agriculture. IPSAS 27 provides requirements for accounting for agricultural activity.

IPSAS 27 is primarily drawn from the International Accounting Standards Board's International Accounting Standard 41, Agriculture, with limited changes dealing with public sector-specific issues. For example, IPSAS 27 addresses biological assets--such as livestock--held for transfer or distribution at no charge or for a nominal charge to other public sector bodies or to not-for-profit organizations. IPSAS 27 also includes disclosure requirements that are aimed at enhancing consistency with the statistical basis of accounting that governs the Government Finance Statistics Manual.

"Agricultural activity can be significant for the public sector in certain parts of the world, including many developing countries," states Mike Hathorn, Chair of the IPSASB. "This IPSAS provides financial reporting requirements that enhance accountability for such activity and are a further step towards our convergence target."

IPSAS 27 is available to download from the IFAC website (www.ifac.org/Store). The IPSASB encourages IFAC members, associates, regional accountancy bodies, and firms to use these materials and to promote their availability to members and employees. 

About IFAC
IFAC (www.ifac.org) 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 159 members and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.

There is a growing understanding that future generations of taxpayers will have to deal with the fiscal consequences of current government policies. Concerns about the ability of governments to meet future service delivery and financial commitments for health, pensions, debt-servicing, and other obligations have long existed, but have increased in the current economic environment. Uncertainty over the long-term financial consequences of government interventions, including the bailouts and stimulus packages that have characterized the global financial crisis, has added another dimension to concerns over the long-term sustainability of public finances in many countries.

The International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) has just published a Consultation Paper, Reporting on the Long-Term Fiscal Sustainability of Public Finances. It seeks views on how information on the long-term sustainability of government programs, increasingly available in many jurisdictions, may complement information available in traditional financial statements, thereby increasing transparency and enhancing accountability and decision making.

"The need for understandable information on the long-term sustainability of all governmental programs has become increasingly apparent from the work that the IPSASB has carried out in developing its own public sector conceptual framework and on accounting for social benefits," says Mike Hathorn, Chair of the IPSASB. "There is a growing awareness that such information can be crucial in allowing citizens to evaluate the scale of the fiscal challenges facing governments, so that the impact on future generations can be better understood. This Consultation Paper asks for views on how such information might be reported."

The IPSASB's project has benefited greatly from the work of a task force, including representatives from governments, audit offices, accounting standard-setters, statistical accountants, and international organizations. Projects recently undertaken by the Organisation for Economic Co-operation and Development and the United States Federal Accounting Standards Advisory Board have been particularly valuable.

The Consultation Paper is available to download free of charge from the IFAC website (www.ifac.org/Guidance/EXD-Outstanding.php). The IPSASB encourages IFAC members, associates, and regional accountancy bodies to promote the availability of this Consultation Paper to their members and employees. 

About IFAC
IFAC (www.ifac.org) 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 159 members and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.

Thank you for inviting me here today. I would like to compliment UNCTAD on its initiative in organizing this seminar today. I would also like to personally recognize Yoseph Asmelash for his long-time, broad, and continued support of IFAC. Thank you, Yoseph.

IFAC plays a number of roles in the global financial system, although it is principally recognized for setting high-quality standards in international public sector accounting, auditing, education, and ethics through its independent boards. Our less recognized role--and one that will be even more important in the years ahead--is as the facilitator and driver of adoption and high-quality implementation. This is where IFAC can help change the game--moving from the goal of convergence to implementation of standards.

Before we can move to implementation, the world must agree on a single set of standards and stop using scarce resources debating whether there SHOULD be a single set of standards. In the case of accounting standards for the private sector, and, indeed, even for auditing standards, this debate has not yet been settled.

But in the case of public sector accounting, there is not much debate about which standards should be used. The International Public Sector Accounting Standards (IPSASs) were developed by the International Public Sector Accounting Standards Board (IPSASB), under the leadership of Chairman Mike Hathorn, who will be speaking to you in a moment. The IPSASs are a complete set of high-quality standards that governments at all levels can--and should--be using to report to taxpayers, their elected legislature, and borrowers around the world.

Good morning, ladies and gentlemen. I'm delighted to be here today to participate in this special anniversary event. My congratulations to Chief Executive Vickson Ncube, President Koos du Toit of ECSAFA, your past presidents and CEOs, and to you, members, on this milestone in your organization's history. I would also like to recognize the hosting institutes and our IFAC colleagues, the South African Institute of Chartered Accountants and the South African Institute of Professional Accountants, and the chief or platinum sponsor, ACCA, as well as all the other sponsors who have contributed in one way or another to making this occasion a success.

My brief remarks today will focus on looking ahead, to consider what IFAC can--and already does--contribute to the Africa of tomorrow through  sustainable development. I suppose that if you walked down a main street in Johannesburg and asked someone at random what is needed for sustainable development in this country, you might find quite a few people who would say "more sports" and, in particular, "success for Bafana Bafana." But there was also the unexpected visit of the Indian Cricket Premiere League, which provided a big boost to the South African economy, particularly for the travel and tourism sector. And it was followed by another welcome event, this time the Confederations Cup. I also note that construction is moving ahead for next year's FIFA World Cup, which should continue to highlight South Africa's unique attractions, as well as spur its economy.

And yet, man or woman does not live by football alone--not in South Africa, as one of the G-20 nations, and certainly not in other areas of the continent that have much further to go in developing a sustainable economy. What they need is people and innovation, and an economic environment that encourages these entrepreneurs to succeed with their ideas, for this is key to building a sustainable business and social environment.

To enhance the usability of International Public Sector Accounting Standards (IPSASs) and thus facilitate global convergence, the International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) has launched an improvements project with the release of Exposure Draft (ED) 42, Improvements to IPSASs. This ED is the first of a proposed series of annual improvements to the IPSASs and is modeled on the successful annual improvements program developed by the International Accounting Standards Board (IASB).

The proposed amendments in the ED are related primarily to the recognition, measurement, or disclosure requirements but do not represent substantive revisions to the content of existing standards. They reflect changes made by the IASB to related International Financial Reporting Standards.

"The financial reporting world of the public sector is a dynamic one," states Mike Hathorn, IPSASB Chairman, "and it is necessary for the IPSASB to continually reassess the IPSASs to ensure that they are relevant to users of public sector financial statements and easy to use by preparers of financial statements."

How to Comment
Comments on ED 42 are requested by September 30, 2009. The ED may be viewed by going to www.ifac.org/Guidance/EXD-Outstanding.php. Respondents are asked to send their comments electronically through the IFAC website, using the "Submit a Comment" link on the Exposure Drafts and Consultation Papers page. Please note that first-time users must register to use this new feature. Although IFAC prefers that comments be submitted using the online submission system, e-mail may continue to be sent to edcomments@ifac.org and stepheniefox@ifac.org. Comments can also be faxed to the attention of the IPSASB Technical Director at +1 (416) 977-8585, or mailed to the IPSASB Technical Director at 277 Wellington Street West, 4th Floor, Toronto, Ontario M5V 3H2, Canada. All comments will be considered a matter of public record and will ultimately be posted on the IFAC website.

About IFAC
IFAC (www.ifac.org) 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 157 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. In addition to setting international public sector financial reporting standards through the IPSASB, IFAC sets ethics, auditing and assurance, and education standards. It also issues guidance to encourage high-quality performance by professional accountants in business.