Government Business Enterprises
The Task-Based Group consists of Rachid El Bejjet, Kenji Izawa, Rod Monette, Angela Ryan
Objective(s) of project
The project will explore issues with the current definition of Government Business Enterprises (GBEs) and will consider whether the current accounting requirements are adequate. The initial output will be either a Consultation Paper or an Exposure Draft. The ultimate output may be revisions to existing IPSASs.
The project will assess the existing definition and accounting treatment of GBEs and determine whether any changes to the current definition are needed. In addition there is a need to consider whether guidelines for the disclosure of non-financial information by GBEs are needed in light of the enhanced accountability focus in the public sector. The project will also explore differences between the definition of GBEs for accounting purposes and public corporations in statistical reporting guidelines.
The definition of a GBE was first developed around 1987 when the rationale for doing so was to set boundaries for public sector within a government that were business like and might apply, in their own financial statements, different accounting principles and presentation based on local company law and business GAAP. The requirement for such entities to consolidate controlled entities using IPSASs was introduced by IPSAS 6 Consolidated and Separate Financial Statements, issued in May 2000.Since then a variety of different forms of entity have been formed so it is appropriate to assess the adequacy of the current definition.
Issues the project needs to take into consideration include (but are not necessarily limited to):
- Is there a need for a definition of GBEs at all;
- If so, is there a need to separate profit oriented entities from full cost recovery entities;
- Should GBEs continue to apply IFRSs;
- Consider whether guidelines for disclosure of non-financial information by GBEs are needed; and
- Analyze the differences between the definition of GBEs for accounting purposes and public corporations in statistical reporting guidelines.
Task Force progress / Board discussions to date
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