International Public Sector Accounting Standards Board 2024

The objective of the International Public Sector Accounting Standards Board is to serve the public interest by developing high-quality accounting standards and other publications for use by public sector entities around the world in the preparation of general-purpose financial reports to enhance the quality, consistency, and transparency of public sector financial reporting worldwide.

Public sector: National governments, regional (e.g., state, provincial, territorial) governments, local (e.g., city, town) governments, and related governmental entities (e.g., agencies, boards, commissions, and enterprises).

General purpose financial reports: Financial reports intended to meet the information needs of users who are unable to require the preparation of financial reports tailored to meet their specific information needs.

In fulfilling its objective, the International Public Sector Accounting Standards Board IPSASB develops and issues the following publications:

• International Public Sector Accounting Standards (IPSAS) as the standards to be applied in the preparation of general-purpose financial reports of public sector entities other than government business enterprises (see below).
• Recommended Practice Guidelines (RPGs) guide good practice that public sector entities are encouraged to follow.
• Studies to provide advice on financial reporting issues in the public sector. They are based on a study of the good practices and most effective methods for dealing with the issues being addressed.
• Other papers and research reports provide information that contributes to the body of knowledge about public sector financial reporting issues and developments. They are aimed at providing new information or fresh insights and generally result from research activities such as literature searches, questionnaire surveys, interviews, experiments, case studies, and analysis.

Due process

The International Public Sector Accounting Standards Board IPSASB issues exposure drafts of all proposed International Public Sector Accounting Standards Board IPSAS and RPGs for public comment. In some cases, the IPSASB may also issue a Consultation Paper before the development of an exposure draft.

This provides an opportunity for those affected by International Public Sector Accounting Standards Board IPSASB pronouncements to provide input and present their views before the pronouncements are finalized and approved.

In developing its pronouncements, the International Public Sector Accounting Standards Board IPSASB seeks input from its consultative group and considers and makes use of pronouncements issued by:

• The International Accounting Standards Board (IASB) to the extent they apply to the public sector;
• National standard setters, regulatory authorities, and other authoritative bodies;
• Professional accounting bodies; and
• Other organizations interested in financial reporting in the public sector.

The IPSASB works to ensure that its pronouncements are consistent with those of the IASB to the extent those pronouncements are applicable and appropriate to the public sector.

Scope of International Public Sector Accounting Standards Board IPSAS

As stated above International Public Sector Accounting Standards Board IPSAS set out requirements dealing with transactions and other events in general-purpose financial reports.

The International Public Sector Accounting Standards Board IPSAS are designed to apply to the general purpose financial reports of all public sector entities other than government business enterprises GBEs. A government business enterprise is an entity that has all the following characteristics: ·        is an entity with the power to contract in its name; ·        has been assigned the financial and operational authority to carry on a business; ·        sells goods and services, in the normal course of its business, to other entities at a profit or full cost recovery; ·        is not reliant on continuing government funding to be a going concern (other than purchases of outputs at arm’s length); and ·        is controlled by a public sector entity.

Accruals based International Public Sector Accounting Standards Board IPSAS

The IPSASB has published many accruals-based IPSAS that are based very closely on the equivalent IFRS. The IPSASB attempts, wherever possible, to maintain the accounting treatment and original text of the IFRSs unless there is a significant public sector issue that warrants a departure.

The IPSASB has also published accrual-based IPSAS that deals with public sector financial reporting issues that are not addressed by IFRS.

The following table lists the accruals based on International Public Sector Accounting Standards Board IPSAS. IPSAS	IFRS equivalent
IPSAS 1: Presentation of financial statements	IAS 1
IPSAS 2: Cash flow statements	IAS 7 (revised)
IPSAS 3: Accounting policies, changes in accounting estimates, and errors	IAS 8
IPSAS 4: The effects of changes in foreign exchange	IAS 21
IPSAS 5: Borrowing costs	IAS 23
IPSAS 6: Consolidated and separate financial statements	IAS 27
IPSAS 7: Investments in associates	IAS 28
IPSAS 8: Interests in joint ventures	IAS 31 (now superseded)
IPSAS 9: Revenue from exchange transactions	IAS 18
IPSAS 10: Financial reporting in hyperinflationary economies	IAS 29
IPSAS 11: Construction contracts	IAS 11
IPSAS 12: Inventories	IAS 2
IPSAS 13: Leases	IFRS 16
IPSAS 14: Events after the reporting date	IAS 10
IPSAS 15: Financial instruments: disclosure and presentation	IAS 32
IPSAS 16: Investment Property	IAS 40
IPSAS 17: Property, plant, and equipment	IAS 16
IPSAS 18: Segment reporting	IFRS 8
IPSAS 19: Provisions, contingent liabilities, and contingent assets	IAS 37
IPSAS 20: Related party disclosures	IAS 24
IPSAS 21: Impairment of non-cash-generating assets	None
IPSAS 22: Disclosure of information about the general government sector	None
IPSAS 23: Revenue from non-exchange transactions (taxes and transfers)	None
IPSAS 24: Presentation of budget information in financial statements	None
IPSAS 25: Employee benefits	IAS 19
IPSAS 26: Impairment of cash-generating assets	IAS 36
IPSAS 27: Agriculture	IAS 41
IPSAS 28: Financial instruments: presentation	IAS 32
IPSAS 29: Financial instruments: recognition and measurement	IFRS 9
IPSAS 30: Financial instruments: disclosures	IFRS 7
IPSAS 31: Intangible assets	IAS 38
IPSAS 32: Service concession arrangements	SIC 12
IPSAS 33: First-time adoption of accruals basis	None
IPSAS 34: Separate financial statements	IAS 27 (revised)
IPSAS 35: Consolidated financial statements	IFRS 10
IPSAS 36: Investments in associates and joint ventures	IAS 28 (revised)
IPSAS 37: Joint arrangements	IFRS 11
IPSAS 38: Disclosure of interests in other entities	IFRS 12

Frequently Asked Questions