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  • Global Public Sector Shift to Accrual Accounting Steadies

    New York/London English

    The new International Public Sector Financial Accountability Index 2025 Status Report, published by the International Federation of Accountants (IFAC) and Chartered Institute of Public Finance and Accountancy (CIPFA) with support from the International Public Sector Accounting Standards Board (IPSASB), highlights steady, gradual progress in governments worldwide moving from cash to accrual-based financial reporting.  

    Accrual accounting provides governments with a clearer picture of their finances by recording the substance of transactions as they occur, rather than when cash transfers occur. This transparency helps inform decision-making and improves the ability to hold governments to account for their decisions. 

    Key findings of the report: 

    • By 2030, 56% of jurisdictions are projected to report on an accrual basis. This represents steady progress since the 2020 Index but at a slower pace than anticipated, reflecting the financial and operational strains governments faced during and after the pandemic. 
    • In 2024, high-income jurisdictions made up the majority of accrual adopters (57%), but by 2030, the landscape will shift. 60% of jurisdictions using accrual are projected to come from middle- and low-income economies. 
    • By 2030, 81% of accrual-reporting jurisdictions are expected to be applying International Public Sector Accounting Standards (IPSAS) either directly, with modifications, or as the foundation for national standards. 

    Lee White, Chief Executive Officer at IFAC said: "Accrual based reporting is essential for public sector transparency and accountability. It is also the foundation for the use of global IPSAS Standards. Our members fulfil a vital role in advising and supporting governments in their journey with the use of accrual accounting and global standards delivering clear accountability.” 

    Owen Mapley, Chief Executive Officer at CIPFA said: “Strengthening public financial management through accrual reporting is fundamental to addressing today’s fiscal challenges and building sustainable futures. It is encouraging to see the shift from cash to accrual has continued despite the impact of the pandemic.” 

    Ian Carruthers, IPSASB Chair said: “The increasing usage and influence of the IPSAS Standards underlines the importance of the shift in IPSASB’s new 5 year strategy towards maintenance of the standards suite, in particular through the recent establishment of the IPSASB Application Group.” 

    Explore the report.  

    About IFAC 

    IFAC, by connecting and uniting its members, makes the accountancy profession truly global. 
     
    IFAC member organizations are champions of integrity and professional quality, and proudly carry their membership as a badge of international recognition. 
     
    IFAC and its members work together to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest. 

    About CIPFA 

    CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. Our 14,000 members work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed. 

    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 Standards), IPSASB Sustainability Reporting Standards (IPSASB SRS™ Standards) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS Standards and IPSASB SRS Standards and promotes the adoption and implementation of these to enhance the quality and consistency of practice throughout the world and strengthen the transparency and accountability of public sector finances and sustainable development. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and The World Bank. 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.   

    New report captures current and future use of public financial reporting approaches by governments around the world

  • IPSASB eNews: September 2025

    New York, New York English

    The third Board meeting of the year was held from September 9 to 12, 2025, in Lisbon, Portugal.

    Thank you to hosts the Ordem dos Contabilistas Certificados (Order of Certified Accountants) for welcoming the IPSASB back to Lisbon and hosting both the September Board meeting and the 5th Public Sector Standard Setters Forum. The IPSASB also extends its thanks to its members, technical advisors, and standard setters from around the globe who joined the Forum to shape the future of public sector standard setting.

    Work Program Consultation

     

    With resources expected to become available in the second half of 2026, the IPSASB approved its Work Program Consultation to ask stakeholders about the most significant needs concerning financial reporting projects, post-implementation reviews, and sustainability reporting projects. The Consultation is expected to be published in October 2025 and will be open for 180 days. Please share your input and feedback on your priorities, so these can be considered in the decision-making process on developing the work program priorities for 2026 and beyond.

    IPSAS 33 – Limited Scope Update

     

    The IPSASB approved the updates to improve IPSAS 33, First-time Adoption of Accrual Basis International Public Sector Accounting Standards. These clarifications to the existing requirements make the guidance easier to apply for first-time adopters by emphasizing exemptions available, including adding new illustrative examples and implementation guidance. The pronouncement will be published in Q4 2025, and is effective January 1, 2028, with early adoption permitted.

    Definition of Material – Narrow Scope Amendments

     

    The IPSASB approved the Final Pronouncement, Definition of Material (Amendments to IPSAS 1, IPSAS 3, and the Conceptual Framework), enhancing the clarity and consistency of materiality throughout the IPSAS Standards. The amendments to IPSAS Standards are effective January 1, 2027, and amendments to the Conceptual Framework are effective upon publication of the pronouncement, which will occur in Q4 2025.

    Natural Resources

     

    The IPSASB has decided that a tangible natural resource held for conservation is a naturally occurring tangible asset that is managed to prevent its degradation. The IPSASB plans to approve the pronouncement during the December 2025 meeting in New York.

    Presentation of Financial Statements

     

    The IPSASB completed all remaining discussions regarding the general presentation requirements and those for the Statement of Changes in Net Assets/Equity. These discussions have allowed the IPSASB to continue progressing the development of most of the Consultation Paper (CP). Next quarter, the Board will tackle the last Chapter of the CP regarding note disclosures and continue developing the illustrative Exposure Draft.

    Strengthening Linkages Between IPSAS Standards and GFSM

     

    The IPSASB agreed to develop the non-authoritative guidance to help public sector entities maximize the extent to which they can use IPSAS Standards-based accounting data to compile statistical information. The work will continue next quarter, with the aim of approving the Exposure Draft at the December 2025 meeting.

    New and Returning Members

     

    High-quality standards that enhance public financial management and promote sustainable development globally need diverse voices to develop them. The Board continues to reflect broad geographic representation, gender parity, and professional expertise in public sector financial and sustainability reporting. Congratulations to our new and returning members for 2026.

    Meeting Videos

    Recordings of the meetings are available on our YouTube channel.

    Next Meeting

    The next IPSASB meeting will be in New York, New York, USA, from December 2-5, 2025.

    2025 Handbook

    The 2025 Edition of the Handbook of International Public Sector Accounting Pronouncements is out now. It contains the complete suite of IPSAS Standards published as of January 31, 2025,

    Building for the Future: Read the IPSASB Biennial Review 2023-2024

     

    The latest Biennial Review is out now: Building for the Future: The IPSASB Biennial Review 2023-2024. Over this review period, the IPSASB completed a number of significant long-running projects and have also finalized its 2024-2028 Strategy and Work Program.

    Adoption & Implementation Resource

    In collaboration with us, IFAC has published a new resource, Implementing International Public Sector Accounting Standards (IPSAS): IFAC Tools, a compilation of our resources designed to help governments and public sector entities adopt and implement IPSAS Standards and help Professional Accountancy Organizations (PAOs) advocate for their use.

  • Building for the Future: Read the IPSASB Biennial Review 2023-2024

    English

    Our latest Biennial Review is out now: Building for the Future: The IPSASB Biennial Review 2023-2024 provides a high-level summary of our activities in 2023 and 2024. Over this period, we completed a number of significant long-running projects. We also developed and finalized our 2024-2028 Strategy and Work Program, which builds on the achievements during the previous Strategy and Work Program, that spanned 2019-2023.

  • IFAC Response to the IAASB’s Proposed Narrow Scope Amendments to ISQMs and ISAs

    IFAC welcomes the opportunity to comment on the consultation paper of the International Auditing and Assurance Standards Board (IAASB) on narrow scope amendments to the International Standards for Quality Management (ISQMs) and International Standards on Auditing (ISAs) for the IAASB Public Interest Entity (PIE) Track 2 Project

    IFAC
    English