• IPSASB eNews: August 2015

    English
    Consultation Paper on Social Benefits

    The IPSASB recently published a Consultation Paper seeking feedback to help it further develop the principles of recognition and measurement for social benefits. The deadline for comments is January 31, 2016. 

    Exposure Draft on the Applicability of IPSAS

    Exposure Draft 56, The Applicability of IPSAS™ seeks input to assist the IPSASB in communicating the public sector entities for which it is developing International Public Sector Accounting Standards™ and Recommended Practice Guidelines. Comments are due by November 30, 2015. 

    IPSASB Earns CIPFA Award

    The Chartered Institute of Public Finance & Accountancy (CIPFA) has presented the IPSASB with this year's Sir Harry Page Merit Award for its development of the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities. Established in 1968, the award is given annually for work in public service accounting and financial management. 

    New Videos Added to “A Closer Look at:” Series

    In two new videos for the "A Closer Look at:" series, IPSASB Deputy Chair Jeanine Poggiolini of South Africa and IPSASB Member Aracelly Mendéz of Panama discuss their nations' experiences with adopting the suite of IPSAS and accrual accounting. Currently, the series includes five videos (Brazil, New Zealand, Panama, South Africa, and Switzerland) and six publications (Costa Rica [English and Spanish], Guatemala, Malaysia, Malta, Panama, and Switzerland. 

    Upcoming Webinar on Social Benefits September 21

    On September 21 at 10 a.m. ET, the IPSASB will present “Social Benefits: An Overview of the IPSASB Consultation Paper.” Technical Manager Paul Mason will leads a discussion of some of the key issues raised in the recent Consultation Paper. Register at: https://attendee.gotowebinar.com/register/530255244251801602

    Audio Podcast: Accounting for Sovereign Debt Restructurings under IPSAS

    The IPSASB staff recently produced an audio podcast and accompanying publication that highlight how IPSAS reflect the accounting consequences of sovereign debt restructuring transactions. Acting Director John Stanford and Senior Technical Manager Ross Smith discuss issues that may be encountered.

    The IPSASB is Hiring

    The IPSASB is recruiting at the Technical Manager level for its staff team based in Toronto, Canada. For a complete job description and required skills and experience, see Working at IFAC. Qualified candidates should send their resumes to jobs@ifac.org.

    Next Meetings

    The IPSASB will meet September 22-25, 2015, in Toronto, Canada. The agenda and meeting materials are posted approximately 2-4 weeks in advance on the IPSASB Meetings page. Members of the public may register to observe the meetings and registration closes one week before the first day of the meeting. 

  • IPSASB Publishes Exposure Draft 56, The Applicability of IPSASs

    New York, New York English

    The International Public Sector Accounting Standards Board® (IPSASB®) today released for comment Exposure Draft (ED) 56, The Applicability of IPSASs.

    ED 56 proposes to:

    • Revise the Preface to International Public Sector Accounting Standards to provide the characteristics of public sector entities for which IPSASs are intended;
    • Delete the definition of Government Business Enterprises (GBEs) in IPSAS 1, Presentation of Financial Statements; and
    • Amend the scope section of each International Public Sector Accounting Standard™ (IPSAS™) and Recommended Practice Guideline (RPG) by removing the paragraph that states that these pronouncements do not apply to GBEs.

    ED 56’s proposed changes address constituents’ concerns about the application of IPSASs to public sector entities. Currently, each IPSAS includes a statement that it does not apply to GBEs, which are expected to be commercially-oriented public sector entities. The term “Government Business Enterprise” is defined in IPSAS 1, Presentation of Financial Statements.

    The IPSASB received feedback that a wide range of entities are described as GBEs, but some of these entities clearly do not meet the IPSASB definition of a GBE. In other cases, there are different interpretations of the GBE definition.

    “The proposals in this Exposure Draft provide a more transparent way to communicate the types of public sector entities that the IPSASB considers when developing IPSASs and RPGs,” said IPSASB Chair Andreas Bergmann. “They use a high-level, principles-based approach that draws on The Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities.”

    “These proposals acknowledge the role of regulators in determining the accounting standards to be applied by different entities in their jurisdictions, and address constituents’ concerns about differing interpretations of the GBE definition,” Prof. Bergmann added. “We look forward to hearing whether constituents support the changes to IPSASs and RPGs proposed in this Exposure Draft or present alternative views.”

    Publication of ED 56 follows the IPSASB’s consideration of responses to a Consultation Paper (CP), The Applicability of IPSASs to Government Business Enterprises and Other Public Sector Entities. The CP proposed two main approaches to communicate the IPSASB’s view of the entities for which it develops IPSASs. The first approach involved describing the characteristics of public sector entities for which IPSASs are intended. The second approach would have retained the definition of a GBE in modified form, potentially narrowing it to profit-seeking public sector entities.

    A large majority of respondents to the CP supported the first approach of providing the characteristics of public sector entities for which IPSASs are intended using IPSASB’s current literature, rather than retaining and improving the definition of a GBE. The proposals in ED 56 give effect to that approach.

    How to Comment
    To access the ED and the At-a-Glance summary of the ED, or to submit a comment, please visit the IPSASB website at www.ipsasb.org. Comments on the Exposure Draft are requested by November 30, 2015. The IPSASB encourages IFAC® members, associates, and regional accountancy bodies to promote the availability of this Exposure Draft to their members and employees.

    About the IPSASB
    The IPSASB develops accounting standards and guidance for use by public sector entities. It receives support (both direct financial and in-kind) from the World Bank, the Asian Development Bank, the Chartered Professional Accountants of Canada, the South African Accounting Standards Board, and the governments of Canada, New Zealand, and Switzerland. The structures and processes that support the operations of the IPSASB are facilitated by IFAC.

    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 over 175 members and associates in 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.

  • Exposure Draft 56, The Applicability of IPSASs

    The International Public Sector Accounting Standards Board (IPSASB) has released for comment Exposure Draft (ED) 56, The Applicability of IPSASs.

    The proposed changes contained in this Exposure Draft address constituents’ concerns about the application of International Public Sector Accounting Standard™ (IPSAS™) to public sector entities. Currently, each IPSAS includes a statement that it does not apply to Government Business Enterprises (GBEs), which are expected to be commercially-oriented public sector entities. 

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  • IPSASB Publishes Consultation Paper on Recognition and Measurement of Social Benefits

    New York, New York English

    The International Public Sector Accounting Standards Board® (IPSASB®) today released for comment a Consultation Paper (CP), Recognition and Measurement of Social Benefits.

    The delivery of social benefits to the public is the primary objective of most governments and social benefits often account for a large proportion of a government’s budget. There is an opportunity for the IPSASB to improve its suite of standards by developing an International Public Sector Accounting Standard™ (IPSAS™) on social benefits. This CP asks constituents for their views on the different approaches identified.

    “Users need information that allows them to evaluate the financial impact of the social benefits that governments provide,” said IPSASB Chair Andreas Bergmann. “The IPSASB considers there is a major need for guidance in this area. This Consultation Paper is the first step in achieving appropriate reporting of social benefits. We look forward to receiving constituents’ views on the options we have identified.”

    This CP builds on the IPSASB’s previous work on accounting for social benefits while also developing new ideas. It defines social benefits as “benefits provided to individuals and households, in cash or in kind, to mitigate the effect of social risks.” The definitions of social benefits and social risks are consistent with those used in statistical reporting. The scope of the social benefits project includes social assistance and social security, but excludes programs that form part of an employer-employee relationship, other transfers in kind, and collective goods and services such as the provision of universal health care and education services. Consequently, this project has a significantly narrower scope than the IPSASB’s earlier work in this area.

    The CP identifies three broad options to account for social benefits:

    • Option 1: The obligating event approach. This approach considers social benefits by reference to the definition of a liability in The Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities. Obligations to pay social benefits are seen as no different from other obligations. The key issue is when a present obligation arises.
    • Option 2: The social contract approach. This option is based on the view that there is an imputed social contract between the state and the citizens. Under this social contract, citizens agree to pay taxes to enable the state to provide social benefits. This is analogous to an executory contract for commercial transactions. Obligations are recognized when they become enforceable (or when claims for social benefits are approved).
    • Option 3: The insurance approach. This approach considers that some social benefits are similar in practice to insurance contracts. It uses an insurance accounting model to measure schemes at the net present value of their cash inflows and outflows.

    How to Comment
    To access the Consultation Paper and the At-a-Glance summary of the Consultation Paper, or to submit a comment, please visit the IPSASB website at www.ipsasb.org/. Comments on the Consultation Paper are requested by January 31, 2016. The IPSASB encourages IFAC® members, associates and regional accountancy bodies to promote the availability of this Consultation Paper to their members and employees.

    About the IPSASB
    The IPSASB develops accounting standards and guidance for use by public sector entities. It receives support (both direct financial and in-kind) from the World Bank, the Asian Development Bank, the Chartered Professional Accountants of Canada, the South African Accounting Standards Board, and the governments of Canada, New Zealand, and Switzerland. The structures and processes that support the operations of the IPSASB are facilitated by IFAC.

    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. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.

     

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