The International Public Sector Accounting Standards Board^® (IPSASB^®), developer of IPSAS®, international accrual-based accounting standards for use by governments and other public sector entities around the world, has issued an integrated package of revenue and transfer expenses pronouncements comprising:

• Updated Conceptual Framework: Chapter 5, Elements in Financial Statements;
• International Public Sector Accounting Standard® (IPSAS®) 47, Revenue; and
• IPSAS 48, Transfer Expenses.

The three pronouncements update and simplify existing principles, while filling gaps in the IPSAS literature, resulting in more consistent guidance for IPSAS users and better support for implementation globally. Informed by stakeholder feedback and refinement over the course of several years, the pronouncements introduce:

• A single up-to-date source of guidance applicable to all revenue transactions across the public sector; and
• A new straightforward accounting model for the recognition and measurement of transfer expenses in the public sector.

“These pronouncements address a significant proportion of transactions for all public sector entities, and their publication is a major milestone in public sector accounting,” said Ian Carruthers, IPSASB Chair. “By providing a robust principle-based approach to accounting for revenue and transfer expense transactions, these pronouncements will help increase the transparency and accountability of public sector transactions around the world.”

The updates to Chapter 5 of the Conceptual Framework revise the definitions of an asset and a liability and add new guidance on the transfer of resources, unit of account, and binding arrangements that are equally unperformed. These changes provide a strong foundation for the guidance in the new standards.

IPSAS 47 replaces IPSAS 9, Revenue from Exchange Transactions and IPSAS 11, Construction Contracts, and IPSAS 23, Revenue from Non-Exchange Transactions (Taxes and Transfers) with two accounting models for the recognition and measurement of public sector revenue transactions, based on the existence of a binding arrangement. The new IPSAS is aligned with IFRS 15, Revenue from Contracts with Customers while broadening its applicability across the public sector. Additional guidance is included to help entities apply the accounting principles to public sector-specific transactions, such as capital transfers and compelled transactions.

IPSAS 48 introduces guidance for transfer expenses, where a transfer provider provides resources to another entity without receiving anything directly in return, which is common situation in the public sector globally. The accounting for transfer expenses is driven by whether the transaction results in an enforceable right to have the transfer recipient satisfy their obligations. To operationalize this principle, IPSAS 48 presents two accounting models based on the existence or not of a binding arrangement.

The effective date for both IPSAS 47 and IPSAS 48 is January 1, 2026, with earlier application permitted. Updates to the Conceptual Framework are effective when published.

How to Access
To access the Conceptual Framework Update: Chapter 5, Elements in Financial Statements, IPSAS 47, Revenue, and IPSAS 48, Transfer Expenses, their summary At-a-Glance documents, and webcasts, visit the IPSASB website. The IPSASB encourages IFAC members, associates, and Network Partners to promote the availability of these pronouncements to their members and employees.

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.

To implement the International Sustainability Standards Board’s (ISSB’s) standards and jurisdictional standards and regulatory requirements, organizations must ensure effective oversight arrangements to deliver high quality, cost effective and decision useful reporting. As reporting and assurance of sustainability-related disclosure evolves, audit committees have a critical role to play in expanding their existing oversight responsibilities for financial reporting and compliance to sustainability-related disclosures.

Because many professional accountants serve on and are accountable to audit committees, the International Federation of Accountants (IFAC), has released Key Questions for Audit Committees Overseeing Sustainability-Related Disclosure to prepare audit committees with effective questions to ask when overseeing sustainability and ESG related disclosures.

The key questions for audit committees cover:

• Roles and responsibilities across the organization
• Data collection, processes and controls
• What’s being reported?
• Audit and assurance

“Professional accountants serving on boards and audit committees play critical roles in the oversight of sustainability-related disclosures, and this release will help prepare audit committees step up their roles to advance sustainability,” said Kevin Dancey, IFAC CEO. “We also encourage professional accountancy organizations (PAOs) to utilize these key questions to help their members stay up to date with, and prepare for, expanding oversight responsibilities in relation to sustainability.”

Access the placemat to find out the essential questions.

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 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

The International Public Sector Accounting Standards Board® (IPSASB®), developer of IPSAS®, international accrual-based accounting standards for use by governments and other public sector entities around the world has issued an integrated package of measurement-related pronouncements comprising: 

• Updated Conceptual Framework: Chapter 7, Measurement of Assets and Liabilities in Financial Statements;
• International Public Sector Accounting Standard® (IPSAS®) 45, Property, Plant, and Equipment, and 
• IPSAS 46, Measurement. 

The three pronouncements provide simplified, more consistent guidance addressing key conceptual challenges and practical implementation issues identified by the public sector community by introducing: 

• Straight-forward principles for initial and subsequent measurement, that apply throughout IPSAS and align with the Conceptual Framework; and
• Enhanced property, plant, and equipment guidance that also clarifies the recognition and measurement of infrastructure and heritage assets. 

“These important pronouncements provide clear and consistent foundational principles for the measurement of public sector assets,” said IPSASB Chair Ian Carruthers. “In addition, IPSAS 45 includes guidance on the recognition and measurement of heritage and infrastructure assets, which addresses their unique characteristics.”  

The updates to Chapter 7 of the Conceptual Framework streamline the measurement principles by eliminating unused measurement bases and enhancing focus on those that are commonly used. The new subsequent measurement framework will help constituents apply the principles in practice and aligns measurement concepts with the guidance provided in IPSAS. 

IPSAS 45 replaces IPSAS 17, Property, Plant, and Equipment by adding current operational value as a measurement basis in the updated current value model for assets within its scope, identifying the characteristics of heritage and infrastructure assets, and adding new guidance on how these important types of public sector assets should be recognized and measured. 

IPSAS 46 provides new guidance in a single standard addressing how commonly used measurement bases should be applied in practice. It brings in generic guidance on fair value for the first time, and introduces current operational value, a public sector specific current value measurement basis addressing constituents’ views that an alternative current value measurement basis to fair value is needed for certain public sector assets. 

The effective date for both IPSAS 45 and IPSAS 46 is January 1, 2025, with earlier application permitted. Updates to the Conceptual Framework are effective when published.  

How to Access 
To access the Conceptual Framework Update: Chapter 7, Measurement of Assets and Liabilities in Financial Statements, IPSAS 45, Property, Plant, and Equipment, and IPSAS 46, Measurement, their summary At-a-Glance document, and webcast visit the IPSASB website. The IPSASB encourages IFAC members, associates, and Network Partners to promote the availability of these pronouncements to their members and employees. 

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. 

A new tool from the International Federation of Accountants (IFAC) is now available to help professional accountancy organizations take leading roles in the anti-corruption fight in their jurisdictions. Global Fight, Local Actions: Anti-Corruption Advocacy Workbook for PAOs equips PAOs and accountancy profession leaders with the background and framework to craft bespoke approaches and messages that best fit their jurisdiction and needs.

Global Fight, Local Actions was used to facilitate discussion at the annual Pan African Federation of Accountants PAO Leadership Forum as part of a workshop on anti-money laundering and the Financial Action Task Force (FATF) “Grey List.” The PAFA Forum was held in advance of the 2023 African Congress of Accountants, taking place this week in Abidjan, Côte d’Ivoire.

“PAOs and the accountancy profession are essential stakeholders at the center of the fight against corruption, in every jurisdiction, in every region,” said Scott Hanson, Director of Policy & Global Engagement at IFAC. “Equipping our member organizations to lead anti-corruption efforts in their jurisdictions was one of our priority actions in last year’s Action Plan for Fighting Corruption and Economic Crime, which this new workbook delivers. We look forward to talking to PAOs around the world to continue helping them develop their national anti-corruption advocacy plans.”

IFAC also plans to build off Global Fight, Local Action with additional initiatives on priority anti-corruption areas, including the interconnected issues of sustainability reporting, public financial management, and financial literacy.

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 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

As the world seeks to decarbonize its economies and achieve net zero emissions, there is an urgent need for stakeholders to understand and respond to that challenge.

Finance professionals and the accountancy profession have a critical role to play in putting sustainability at the heart of decision-making and in enabling responsible corporate practices in the public interest. They must, however, be equipped with the right education and skills to do.

As a Partner Event of the EU Green Week 2023, Developing green skills for finance professionals - Building capacity for a fair and sustainable transition will be held virtually on 8 June 8, 2023 from 4:00pm-5:15pm.

The Association of Chartered Certified Accountants (ACCA), Accountancy Europe and the International Federation of Accountants (IFAC) are bringing together global experts to discuss the skills and education needed for finance professionals to contribute to a green and just transition, focussing in particular on:

• How to identify and create the right framework for sustainability education for finance professionals
• The strong need for capacity building in the sustainability information space, and
• Challenges and opportunities for practitioners

Helen Brand, Chief Executive of ACCA, said: “Finance and accountancy professionals, including auditors, have a key role to play in the transition to a greener global economy. They are increasingly informing and driving sustainability reporting and strategies in businesses across every sector. So it’s crucial that they are equipped with the necessary knowledge and skills.”

“Sustainability education and training are crucial to help accounting and finance professionals address the impacts of climate change in what companies report, empowering them with the knowledge and expertise needed, said Kevin Dancey, IFAC CEO. “ We need to build capability and capacity for high-quality, decision-useful sustainability disclosures—it all starts with education.”

“A just sustainable transition requires appropriate skills and training", said Olivier Boutellis-Taft, Accountancy Europe’s CEO. "The accountancy profession has relevant knowledge and practical experience and also needs to continue expanding its ability to respond to societal needs and support the fundamental changes required to transform our economy.”

The event will feature:  

• Olivier Boutellis-Taft, CEO, Accountancy Europe
• Anne Marie Vitale, IFAC’s chair of the International Panel on Accountancy Education
• Sharon Machado, Head of Sustainable Business, ACCA
• Mardi McBrien, Chief of Strategic Affairs & Capacity Building, IFRS Foundation
• Bianca Isaincu, Policy Analyst, financial literacy and sustainable finance, OECD
• Adriana Tiron Tudor, Chair of Professional Accountancy Education in Europe
• Clemence Lecat, Senior Manager Accounting Expertise, Unilever

The event is free to attend and will be held in English via zoom. View the agenda and register now.  

About ACCA 

ACCA is a global body representing the accounting and auditing profession. The ACCA upholds, trains and advocates for the highest professional and ethical values. Currently, it has 241,000 members and 542,000 future members based in 178 countries. 

About Accountancy Europe 

Accountancy Europe unites 50 professional organisations from 35 countries that represent 1 million professional accountants, auditors, and advisors. They make numbers work for people. Accountancy Europe translates their daily experience to inform the public policy debate in Europe and beyond. Accountancy Europe is in the EU Transparency Register (No 4713568401-18). 

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 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce

It is with great sorrow we received news of the death of Ian Mackintosh, who was chair of the IFAC Public Sector Committee (PSC) in the run up to it formally becoming the International Public Sector Accounting Standards Board (IPSASB).

Ian had an illustrious and influential career in both national and international standard-setting for both the public and private sectors over several decades. He served as Chair of the IFAC PSC from 2000 to 2003, during which time he led the development of a number of the foundational accrual based IPSAS, as well as launching the important public sector-specific projects related to Social Benefits and Non-Exchange Revenue.

Towards the end of his PSC Chair tenure, he was a member of the Likierman Review, which led to the formal establishment of the IPSASB as the independent international standard setting board for the public sector. He continued to play a major role in standards development, holding roles including Chair of the UK Accounting Standards Board, Vice-Chair of the IASB and latterly, Chair of the Corporate Reporting Dialogue.   

“Ian Mackintosh was truly unique among international standard setters, in having made a significant contribution to the development of both the public and private sector standards. He was a dedicated and passionate leader who had an enormous impact on the international financial reporting landscape,” said Ian Carruthers, IPSASB Chair. “We at the IPSASB extend our deepest condolences to his family, friends, and former colleagues around the world.”

About 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. 

The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in more than 130 jurisdictions, is seeking an outstanding individual to become its next Chief Executive Officer. 

The successful candidate would join IFAC in late 2023 to facilitate an orderly transition from current CEO Kevin Dancey.  Mr. Dancey has served as CEO since 2018 and announced in March his intent to step down at the end of 2023.   

Thanks largely to the stewardship of Mr. Dancey, IFAC today enjoys constructive relationships with its various stakeholders, and is in as strong a position as ever to help influence the direction of the future of the profession.   

The successful candidate for the CEO role must have a keen interest in and deep personal commitment to IFAC’s vision and purpose: to serve the public interest by promoting the value of professional accountants worldwide; speaking out on public interest issues where the accountancy profession’s expertise is most relevant; developing strong professional accountancy organizations and accounting firms; and supporting the development, adoption and implementation of high-quality international standards. 

Korn Ferry has been retained for the search and is partnering with an IFAC CEO Search Committee, chaired by past President Alan Johnson, to actively engage IFAC member organizations, the accountancy community, and other stakeholders and encourage a diverse and international applicant base.  

The full job specification is available here. It includes a link for qualified applicants to submit indications of their interest. 

Referrals for potential candidate names and contact information may be sent to Sara.Curley@kornferry.com.

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 180 members and associates in 135 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce. 

In light of the urgent need for sustainability reporting guidance for the public sector, the International Public Sector Accounting Standards Board^® (IPSASB^®), developer of IPSAS®, international accrual-based accounting standards for use by governments and other public sector entities around the world, has issued Reporting Sustainability Program Information—Amendments to RPGs 1 and 3: Additional Non-Authoritative Guidance.

Ahead of a decision by the IPSASB on the potential development of a framework for public sector specific sustainability reporting guidance, the additional non-authoritative guidance included in Recommended Practice Guideline (RPG) 1, Reporting on the Long-Term Sustainability of an Entity’s Finances, and RPG 3, Reporting Service Performance Information can be immediately applied by governments and public sector entities to report on sustainability program information.

The additional guidance is intended to support the implementation of the key areas highlighted in the OECD paper Green Budgeting: A Way Forward. RPG 3 includes four illustrative examples which show how its authoritative guidance can be applied to reporting sustainability program information on:

• A program financed by a green bond;
• A program financed by a carbon tax;
• An investment in infrastructure to mitigate the impacts of climate change; and
• A tax expenditure for sustainability investments.

“For governments and the public sector to play their parts in addressing climate change and sustainability, strong governance, accountability, and transparency are necessary,” said IPSASB Chair Ian Carruthers. “As we explore the potential development of a public sector sustainability framework, in the interim, public sector entities can utilize the additional guidance that the IPSASB has provided in the amendments to these RPGs for reporting on programs addressing both climate change and the Sustainable Development Goals.”

How to Access
To access Reporting Sustainability Program Information—Amendments to RPGs 1 and 3: Additional Non-Authoritative Guidance, its summary At-a-Glance document, and webcast, visit the IPSASB website. The IPSASB encourages IFAC members, associates, and Network Partners to promote the availability of Reporting Sustainability Program Information—Amendments to RPGs 1 and 3: Additional Non-Authoritative Guidance to their members and employees.

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.

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IFAC, IPSASB, and Accountancy Europe hosted a lively discussion on the future of sustainability reporting in the public sector, the urgent need to develop public sector specific sustainability reporting standards, and how the IPSASB is exploring undertaking the critical endeavor.

A recording of Equipping the Public Sector for Sustainability Action and highlights are now available.

About 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 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 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce. 

About Accountancy Europe 
Accountancy Europe unites 50 professional organisations from 35 countries that represent 1 million professional accountants, auditors, and advisors. They make numbers work for people. Accountancy Europe translates their daily experience to inform the public policy debate in Europe and beyond. Accountancy Europe is in the EU Transparency Register (No 4713568401-18). 

Today, the International Auditing and Assurance Standards Board (IAASB) issued proposed revisions to its current standard on going concern, International Standard on Auditing 570 (Revised), Going Concern. The proposed changes aim to:

• Promote consistent practice and behavior and facilitate effective responses to identified risks of material misstatement related to going concern;
• Strengthen the auditor’s evaluation of management’s assessment of going concern, including reinforcing the importance, throughout the audit, of the appropriate exercise of professional skepticism; and
• Enhance transparency with respect to the auditor’s responsibilities and work related to going concern where appropriate, including strengthening communications and reporting requirements.

High-quality audits support the smooth functioning of capital markets, overall economic performance, and financial stability. The ongoing uncertainties in the broader economic environment, corporate failures across the globe in recent years, and the more recent turmoil in the financial services sector have put a spotlight on the topic of going concern. In addition, conditions, such as war and the global pandemic, have also heightened risks and focused attention on the challenges and issues related to auditors’ responsibilities and work related to management’s assessment of an entity’s ability to continue as a going concern.

“Investors, regulators, and other stakeholders have repeatedly called for more robust audit procedures related to going concern and for increased transparency regarding that work in the auditor’s report,” noted IAASB Chair Tom Seidenstein. “The revisions proposed today are a step in that direction. The proposals seek to strengthen going concern requirements by substantially enhancing the auditor’s work effort in relation to going concern and providing enhanced, entity-specific information in the auditor’s report.”

The IAASB invites all stakeholders to comment on the proposed revisions via the IAASB website. Comments are requested by August 24, 2023.

About the IAASB
The International Auditing and Assurance Standards Board develops auditing, assurance, related services, and quality management standards and guidance in the public interest that support consistent performance of quality engagements. Along with the International Ethics Standards Board for Accountants, the IAASB is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board oversees IAASB and IESBA activities and the public interest responsiveness of the standards. For copyright, trademark, and permissions information, please visit Permissions.