"The state of government reporting is 'the elephant in the room.'"
— World Bank Group CFO Vincenzo LaVia
The sovereign debt crisis has illustrated the dire consequences of insufficient transparency and accountability of governments and poor public finance management and reporting.
Governments are not risk-free and the failure of fiscal management in the public sector has an economic impact that will far exceed the impact of losses incurred by corporate failures.
This jeopardizes both the interests of the public as well as investors.
Today, many key decision-makers, politicians, and public finance management leaders are taking the key steps toward meaningful reform, including the adoption and implementation of accrual accounting and International Public Sector Accounting Standards (IPSAS).
IPSAS and Accrual Accounting News
- IFAC CEO commends Ghana's Ministry of Finance for its decision to adopt IPSAS for its reporting framework.
- What is the status of European Public Sector Accounting Standards? Public Finance International explores the issue.
- In a letter to the Financial Times, CIPFA International's CEO discusses misconceptions about Greece's finances.
- Former IFAC CEO and current CIPFA International CEO asks "Would IPSAS help Greece?"
- Brookings "Up Front" blog suggests IPSAS adoption as part of "detailed accounting rules" would aid Greece's recovery.
- "While many governments around the world, including Australia and New Zealand, use accrual accounting in accordance with International Public Sector Accounting Standards, Germany’s federal government continues to report on a cash basis," according to Adrian Rollins in In the Black.
- Writing in the African Business Review, IFAC CEO Fayezul Choudhury and PAFA President Mussa J. Assad link transparency and accountability in public sector finance to Africa's growth.
- IPSAS 33, First-time Adoption of Accrual Basis IPSASs
- 2014 Handbook of International Public Sector Accounting Pronouncements
- The Importance of Accrual-based Financial Reporting in the Public Sector
- Study 14—Transition to the Accrual Basis of Accounting: Guidance for Governments and Government Entities (Third Edition)
"A Closer Look at:"
The IPSASB's "A Closer Look at:" series examines the challenges and benefits of governments adopting IPSAS and accrual accounting. In print and video interviews, each nation's expert describes the process and shares key details, timelines, and lessons learned.
The IPSASB's "A Closer Look at:" series examines the challenges and benefits of governments adopting IPSASs and accrual accounting.IPSASB "A Closer Look at: South Africa"IPSASB "A Closer Look at: Panama"IPSASB "A Closer Look at: Brazil"IPSASB "A Closer Look at: Switzerland"IPSASB "A Closer Look at: New Zealand"