International Statistical Standards
The International Public Sector Accounting Standards Board’s (IPSASB) Strategy and Work Plan 2024-2028 includes alignment with Government Finance Statistics[1] (GFS) as an integral part of the Board’s work.
New IFAC Digital Platform Assists Public Sector Transition from Cash to Accrual Accounting: Pathways to Accrual
New York, New York
English
To contribute to and promote the development, adoption, and implementation of high-quality international standards, the International Federation of Accountants (IFAC) launched a new digital platform, Pathways to Accrual, providing a central access point to resources helpful for governments and other public sector entities planning and undertaking a transition from cash to accrual accounting including adopting and implementing International Public Sector Accounting Standards (IPSAS).
Pathways to Accrual builds upon the work of the International Public Sector Accounting Standards Board (IPSASB)’s Study 14, Transition to the Accrual Basis of Accounting: Guidance for Governments and Government Entities with updated content and a modernized presentation with easier navigation.
To equip public sector entities with tools for a carefully considered and smooth transition, Pathways to Accrual:
- Outlines the benefits and implications of adopting and implementing accrual accounting including IPSAS;
- Lays out the fundamentals to quality public financial management (PFM), essential for effective and efficient delivery of public services, transparent public finances, and trust between government and citizens;
- Explores multiple transition pathways for incremental implementation of accrual;
- Identifies the main tasks associated with recognition of assets, liabilities, revenues, and expenses, including issues and challenges associated with the identification of, as well as measurement of, those elements in financial statements;
- Gives practical suggestions, guidance, and case studies based on the experience of other entities and jurisdictions; and
- Provides links to other useful guidance and resources to help entities make the best decisions for their unique circumstances.
The platform was developed by IFAC with content provided by the Chartered Institute of Public Finance and Accountancy (CIPFA) and feedback from the International Public Sector Standards Board (IPSASB) and international community stakeholders.
"The benefits are clear: accrual accounting improves transparency, decision-making, and accountability in the public sector, but the path forward is less apparent," said IFAC CEO Kevin Dancey. "Pathways to Accrual will help accountants and public sector entities seize the opportunity of transitioning to accrual accounting by equipping them with the tools necessary to forge their own unique paths towards sound public financial management."
“There is significant accrual adoption and implementation activity underway across all regions of the world,” said Ian Carruthers, International Public Sector Accounting Standards Board (IPSASB) Chair. “By 2025, 50% of the jurisdictions in the 2021 International Public Sector Accountability Index are forecast to report on accrual basis, and Pathways to Accrual will be instrumental in supporting both these transitions and the many others planned for subsequent years.”
Explore the platform: https://pathways.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.
Pathways to Accrual provides resources to implement the whole system approach to quality Public Financial Management (PFM) necessary to transition from cash to accrual with maximum benefit
Corporate Sustainability Push a $35 Trillion Dollar Conundrum for Auditors
English
Reliable checks on companies' sustainability credentials will take years to develop, auditors say, meaning investors pouring trillions of dollars into green funds remain at greater risk of being hoodwinked.
Given the demand for investments that support environmental, social and governance (ESG) goals, the pressure is on to ensure companies aren't exaggerating or misrepresenting the benefits of their activities, a phenomenon known as "greenwashing".
Reuters
Time for Action on Sustainability: Next Steps for the Accountancy Profession
With the establishment of the International Sustainability Standards Board, the way forward is clear: The accountancy profession must lead on climate reporting and other material environmental, social and governance disclosures and their assurance—contributing to strong and sustainable financial markets and economies and enabling the UN’s Sustainable Development Goals.
IFAC
New Implementation Guide Available for Quality Management for Audits of Financial Statements
New York, New York
English
The International Auditing and Assurance Standards Board (IAASB) today released First-time Implementation Guide for ISA 220, Quality Management for an Audit of Financial Statements. The guide will help stakeholders understand the standard and properly implement its requirements as intended.
Alongside the previously released implementation guides for International Standard on Quality Management (ISQM) 1 and 2, the new Guide will help stakeholders implement the IAASB’s suite of quality management standards. The suite of standards was released in December 2020 and come into effect on December 15, 2022.
These publications do not amend or override ISA 220 or ISQM 1 or 2, the text of which alone are authoritative. Reading these publications are not a substitute for reading the ISQMs. The IAASB encourages all practitioners to plan early for appropriate implementation, given the potential impact of the changes to firms’ quality management systems.
ISA 220 (Revised) First-Time Implementation Guide
International Standard on Auditing 220
This non-authoritative First-time Implementation Guide may help stakeholders understand the requirements of the International Standard on Auditing (ISA) 220 (Revised), Quality Management for an Audit of Financial Statements, and implement the standard in the manner intended.
Practitioners are required to have quality management systems designed and implemented in accordance with ISA 220 by December 15, 2022.
IAASB
Data management value chain: An opportunity for accountants in the digital age
Digitization has created enormous amounts of data. With the influx of information, how can accountants help harness the value of non-financial data? Find out in this joint webinar by CPA Canada and IFAC, which dives deeper into the new data-related challenges and opportunities for accountants presented in the “The professional accountant’s role in data” discussion paper.
International Public Sector Accounting Standards Board Releases Leases Standard
English
Accounting Today highlights the publication of IPSAS 43, Leases.
Accounting Today highlights IPSAS 43, Leases.
IFAC SMP Advisory Group Response to the IAASB Audits of LCEs Exposure Draft
In an increasingly complex world with evolving reporting needs, a need for a set of high-quality requirements tailored for the audits of less complex entities has emerged
The SMPAG strongly supports the IAASB Exposure Draft to create a separate, standalone standard for audits of LCEs.
IFAC
PIOB Opens IAASB Nominations Process, Issues Invitation for Application
New York, New York
English
The Public Interest Oversight Board’s (PIOB) newly formed Standard Setting Boards’ Nominations Committee has issued the Invitations for Application for the International Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants. The application period will be open until March 30, 2022.
The Nominations Committee will make recommendations to the PIOB for up to five new appointments and re-appointments to the IAASB for terms beginning January 1, 2023. The Invitations for Application are open to all individuals and interested organizations, including those representing investors and the corporate governance community, regulatory bodies, national standard setters, accounting and audit firms, professional accountancy organizations and public sector organizations, and those in academia. Individuals may also make nominations on their own behalf.
For additional information, please see the PIOB’s nominations web page or email SSBNominations@ipiob.org.
IAASB Encourages Qualified Candidates to Apply