Ipsasb

February 4, 2008

Thank you for signing up to receive eNews from the International Public Sector Accounting Standards Board (IPSASB). We welcome your comments.

In This Issue:

  1. IPSASB Issues New Requirements for Recipients of External Assistance
  2. IFRS Convergence Project Advances
  3. IPSASB Deputy Chair Appointed
  4. Chinese Government Reforms Embrace IPSASs
  5. IFAC Hosts Forum on Strengthening Governmental Accountability
  6. Global Survey Finds Strong Support for IPSAS Adoption
  7. Outcomes of November 2007 IPSASB Meeting Available
  8. French and Spanish Translations of 2007 Handbook Continuing
  9. IFAC Launches Database of Translations of International Standards
  10. Share IPSASB eNews with Your Colleagues
  11. Next IPSASB Meeting

1. IPSASB Issues New Requirements for Recipients of External Assistance

In January, the IPSASB issued new requirements and recommended disclosure for recipients of international aid and other external assistance who follow the cash basis of accounting. The updated Cash-Basis International Public Sector Accounting Standard (IPSAS), Financial Reporting under the Cash Basis of Accounting, sets out requirements that are designed to reduce some of the multiple reporting practices that recipients of external assistance may currently face and help them to use resources more efficiently. The requirements are effective for reporting periods beginning on or after January 1, 2009. The Cash-Basis IPSAS can be downloaded free-of-charge from the International Federation of Accountants (IFAC) online bookstore (http://www.ifac.org/store).

2. IFRS Convergence Project Advances

The IPSASB is near finalization of two new standards as part of its project to converge IPSASs with the equivalent International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board. The forthcoming IPSAS 25, Employee Benefits, will cover reporting requirements for employee benefits by public sector entities, including a number of public sector specific issues. The second new standard, IPSAS 26, Impairment of Cash-Generating Assets, will set out the procedures for reporting on impairment losses on assets held by public sector entities for primarily commercial reasons.

IPSASs 25 and 26 are planned to be effective for reporting periods beginning on or after January 1, 2011 and April 1, 2009, respectively. Further information will be posted on the IPSASB home page in the coming weeks, once the standards have been released.

3. IPSASB Deputy Chair Appointed

Effective January 1, 2008, Erna Swart has been appointed Deputy Chair of the IPSASB. Ms Swart, who is the Chief Executive Officer of the South Africa Accounting Standards Board, has served on the IPSASB since 2005. "Erna is a very experienced public sector accounting standard setter who has made a significant contribution since her appointment to the Board. She has also brought great insight into issues affecting Africa and developing countries," states IPSASB Chair Mike Hathorn.

A complete list of IPSASB members is available at http://www.ifac.org/PublicSector/CommitteeMembers.php.

4. Chinese Government Reforms Embrace IPSASs

During its meeting in Beijing, China on November 27-30, 2007, the IPSASB was updated on the progress being made by the Chinese government on public sector accounting reforms. To support the work of the IPSASB, the Chinese government has agreed to continue to provide seconded staff to the IPSASB's office in Toronto, Canada. Qi Chang of the Chinese Ministry of Finance will join the IPSASB office in April 2008.

Further information on the IPSASB's work program is available at http://www.ipsasb.org.

5. IFAC Hosts Forum on Strengthening Governmental Accountability

As part of its 30th anniversary celebration, on December 4, 2007 IFAC hosted a World Accountancy Forum in New York City on the topic of Government, the Accountancy Profession and the Public Trust: Current Initiatives and Future Challenges. Speakers from government, public policy organizations, regulators, standard setters, accounting firms, and IFAC's leadership participated in panel discussion focusing on strengthening governmental accountability, convergence, and finding the right balance of regulation, oversight and business growth. Video recordings of the forum can be viewed at http://www.ifac.org/anniversary.

6. Global Survey Finds Strong Support for IPSAS Adoption

In December 2007, IFAC announced the results of its first annual Global Leadership Survey of the Presidents and Chief Executives of its member bodies and regional accountancy organizations. The survey sought to determine the issues impacting economic growth and those affecting the accountancy profession worldwide over the next year. A key finding with respect to public sector accounting was that survey respondents in countries that are not applying IPSASs overwhelmingly agreed that adoption of the standards by their governments would increase economic growth and development. Those surveyed also indicated that applying IPSASs would enhance public sector accountability in their jurisdictions. For more information on the survey results, visit: http://www.ifac.org/globalsurvey.

7. Outcomes of November 2007 IPSASB Meeting Available

Meeting Highlights and Decisions from the IPSASB's most recent meeting in Beijing, China are now available in English, French and Spanish. At the November meeting, the IPSASB discussed the following topics:

  • Conceptual framework;
  • Service concession arrangements;
  • Social benefits;
  • Employee benefits;
  • Impairment of cash-generating assets;
  • External assistance;
  • Updating IPSASs;
  • Cash-basis IPSAS review; and
  • Guidelines for modifying International Accounting Standards Board documents.

A number of documents relating to these projects were approved and will be issued during the first quarter of 2008. Meeting Highlights and background papers for all past IPSASB meeting can be viewed at http://www.ifac.org/PublicSector/Meetings.php.

8. French and Spanish Translations of 2007 Handbook Continuing

French and Spanish translations of the 2007 IPSASB Handbook of International Public Sector Accounting Pronouncements are well in progress. The IPSASB continues working with the translators to make translations of more recently issued IPSASs available first. French and Spanish translations of the standards issued as part of the IPSASB's 2005 handbook may be downloaded free-of-charge from the IFAC online bookstore.

9. IFAC Launches Database of Translations of International Standards

IFAC has launched a database of third-party translations of its international standards, including IPSASs. The database features information on the languages available, publication titles, names of translating organizations and, where available, lists of translated key terms. In addition, IFAC has released two updated policy statements to facilitate the translation and reproduction of its publications. For more information, visit: http://www.ifac.org/translations.

10. Share IPSASB eNews with Your Colleagues

The IPSASB issues regular eNews updates to keep you current on its activities and recent publications. Please forward this eNews to any interested colleagues and advise them that they can subscribe to receive this eNews by following these simple steps:

  1. Go to the eNews sign-up page at http://www.ifac.org/E-news/index.tmpl.
  2. Enter your email address, name and country.
  3. Select "Public Sector eNews" from the check list as well as any other eNews alerts that you would like to receive.

You will receive the next issue of the IPSASB eNews directly into your inbox.

11. Next IPSASB Meeting

The next meeting of the IPSASB will be held in Toronto, Canada on March 10-13, 2008. The meeting is open to public observers. For more information and to register to attend, visit: http://www.ifac.org/PublicSector/#Meetings.

For more information about any of the items mentioned above or other information about the IPSASB, please contact: pr@ifac.org or visit the IPSASB's home page at http://www.ipsasb.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 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, through its independent standard-setting boards, sets ethics, auditing and assurance, and education standards. It also issues guidance to encourage high quality performance by professional accountants in business.