Cash Basis Review

  • Cash Basis Review

    Project Status

    Task Force Report discussed by the IPSASB at its June 2010 meeting.


    Paul Sutcliffe

    Task Force

    Erna Swart (Chair) - IPSASB Member
    Andreas Bergmann - IPSASB Public Member
    Simon Bradbury - World Bank
    Sara Fyson - OECD
    Hong-Sang Jung - Asian Development Bank (ADB)
    Ron Points - Consultant - World Bank
    Irene Lombe Ng'andwe - IFAC Developing Nations Committee, Consultant, Zambia
    Ronaldo Rotter - Inter American Development Bank (IADB)

    Objective(s) of project

    The primary objective of the project is to identify any major difficulties that public sector entities have encountered in implementing the Cash Basis IPSAS Financial Reporting under the Cash Basis of Accounting and determine whether the IPSAS should be modified, or if further guidance should be provided, in light of these difficulties.

    Further objectives of the project include:

    • identifying whether further reporting requirements should be added to the IPSAS; and
    • determining whether any of the encouraged additional disclosures in Part 2 of the Standard should be included as mandatory requirements in Part 1 of the Standard.


    Review implementation experiences in respect of the Cash Basis IPSAS Financial Reporting under the Cash Basis of Accounting.


    The Cash Basis IPSAS was first issued in January 2003, with the intention that a post-implementation review would occur two years after promulgation to determine if the requirements of the IPSAS were appropriate.

    In late 2003, the IPSASB agreed to update the Cash Basis IPSAS with disclosures about the receipt of external assistance and, consequentially, deferred the post implementation review pending completion of that project.

    Since first issued, the Cash Basis IPSAS has been updated with additional requirements and encouragements about the presentation of both budget information and external assistance received in financial statements.


    Matters to be considered in the project include whether:

    • major difficulties have been experienced in implementing the IPSAS, and the nature of those difficulties;
    • existing requirements of the IPSAS should be modified to respond to implementation difficulties;
    • additional requirements or encouragements should be added to the IPSAS; and
    • any of the encouraged additional disclosures currently included in the IPSAS should become mandatory.

    Task Force progress / Board discussions to date

    June 2010: At the IPSASB meeting in June 2010, the Task Force chair, some Task Force members and the Task Force staff discuss the Task Force Report and its Recommendations with IPSASB members.

    The IPSASB accepts the Task Force Report and agrees that detailed proposals to action the Task Force Recommendations are to be prepared by IPSASB staff for consideration at IPSASB meetings in November 2010 and, as appropriate, during 2011.

    May 2010: Analysis of input is completed. The Task Force agrees the recommendations to be made to IPSASB. The Task Force finalizes its Report and submits it to the IPSASB.

    December 2009: Data collection and follow-up discussion phases of the project are largely completed. Analysis of input and consideration of appropriate responses are in process.

    May 2009: The Task Force develops and issues a brief project questionnaire as the first stage of its data gathering process. The questionnaire is translated into French and Spanish. Responses to the questionnaire are requested by July 15, 2009.

    The questionnaire is an initial reference point to identify broad areas of concern. The Task Force also intends to undertake follow-up discussions with interested parties where possible - either on an individual basis or in regional round tables. It is anticipated that follow-up discussions will take place during the second half of 2009.

    February 2009: The IPSASB notes progress and confirmes the updated project brief and timetable, and the process for project development proposed by the Task Force. The Task Force holds its first meeting together with participants from international development agencies and other international organizations and confirmes the project objectives, timetable and processes. A brief project questionnaire is to be developed and issued in April 2009 and supported by a number of follow-up interviews and round table discussions with developing nations during the second half of 2009.

    December 2008: The Task Force is appointed, agrees major operating procedures and commences the process of identifying jurisdictions which have adopted the cash basis IPSAS and, therefore, can provide input on implementation issues.

    November 2008: Project Brief is updated and approved. The project is actioned.

    November 2007: The IPSASB approves an initial project brief.


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