For many governments and public sector entities, social benefit programs - such as social security, the provision of healthcare and unemployment benefits - comprise a highly significant part of their operations. The International Public Sector Accounting Standards Board (IPSASB), an independent standard-setting board within the International Federation of Accountants (IFAC), has launched a project on the long-term fiscal sustainability of these programs. The IPSASB is also seeking comments on proposed new requirements designed to improve consistency and transparency in the reporting of certain government social benefits and has issued a consultation paper on related issues, particularly liability recognition.

Long-Term Fiscal Sustainability Project
The IPSASB has undertaken a project on long-term fiscal sustainability and has released a project brief on which it welcomes comments. In developing its project on social benefits, the IPSASB has concluded that financial statements alone may not provide users with enough information to assess the long-term viability of social benefit programs. It has, therefore, undertaken this new project to develop a framework for reporting on the long-term fiscal sustainability of governmental programs and finances.

"While the IPSASB accepts that there is a level of uncertainty about fiscal sustainability information, we believe that additional information may be necessary for users of financial statements to have a more complete picture about the future viability of government social benefit programs. We have, therefore, decided to initiate an important project on a topic which has assumed increasing global significance in recent years," states Mike Hathorn, Chair of the IPSASB.

Disclosures for Social Benefits
To improve the consistency and transparency of reporting on social benefits by public sector entities, the IPSASB has released exposure draft (ED) 34, Social Benefits: Disclosure of Cash Transfers to Individuals or Households. ED 34 proposes disclosure requirements for amounts to be paid to beneficiaries as part of social programs, as well as information about those programs. ED 34 also includes requirements for determining the amounts to be disclosed. While this is an initial step in developing accounting for social benefits, the IPSASB believes the requirements in ED 34 will provide useful information on social benefit programs for users of public sector financial reports. ED 34 is also intended to bridge the gap between accrual based financial statements and the possibility of long-term fiscal sustainability reporting.

"Accounting for social benefits goes to the heart of government operations, and there is currently no private sector standard addressing it," notes Mr. Hathorn. "ED 34 provides a very small first step on the challenging road to developing a globally accepted approach."

Key Issues in Recognition and Measurement of Social Benefits
The IPSASB is also seeking comments on a consultation paper, entitled Social Benefits: Issues in Recognition and Measurement. The consultation paper sets out the IPSASB's strategy for developing approaches to address the issues involved in accounting for social benefits, including recognition and measurement. These issues include when liabilities for cash transfers and goods and services arise and, if so, whether these liabilities arise at an earlier point for contributory programs than for programs financed primarily through general taxation.

How to Comment
Comments on both ED 34 and the consultation paper are requested by July 15, 2008. Both documents may be viewed by going to https://www.ifac.org/EDs. Comments may be submitted by email to EDComments@ifac.org. They can also be faxed to the attention of the IPSASB Technical Director at +1 (416) 977-8585, or mailed to the IPSASB Technical Director at 277 Wellington Street West, 6th Floor, and Toronto, Ontario M5V 3H2, Canada. All comments will be considered a matter of public record and will ultimately be posted on the IFAC website.

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 157 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international public sector financial reporting standards through the IPSASB, IFAC, through its independent standard-setting boards, sets ethics, auditing and assurance, and education standards. It also issues guidance to encourage high quality performance by professional accountants in business.

The International Public Sector Accounting Standards Board (IPSASB), an independent standard-setting board within the International Federation of Accountants (IFAC), has issued two new standards to further convergence with International Financial Reporting Standards (IFRSs) developed by the International Accounting Standards Board (IASB). The two standards - International Public Sector Accounting Standard (IPSAS) 25, Employee Benefits and IPSAS 26, Impairment of Cash-Generating Assets - will improve the consistency and transparency of financial reporting by public sector entities. They can be downloaded from the IFAC online bookstore (https://www.ifac.org/store).

Employee Benefits
For most public sector entities, employee benefits have a major impact on financial performance and financial position. IPSAS 25 sets out the reporting requirements for the four categories of employee benefits dealt with in the IASB's International Accounting Standard (IAS) 19, Employee Benefits. These are short-term employee benefits, such as wages and social security contributions; post-employment benefits, including pensions and other retirement benefits; other long-term employee benefits; and termination benefits. The new IPSAS also deals with specific issues for the public sector, including the discount rate related to post-employment benefits, treatment of post-employment benefits provided through composite social security programs, and long-term disability benefits.

IPSAS 25 is effective for reporting periods beginning on or after January 1, 2011.

"The significance of reporting employee benefits fully and consistently cannot be overemphasized," states IPSASB Chair Mike Hathorn. "Not recognizing the costs and liabilities related to such obligations can severely undermine the reliability of a public sector entity's financial statements."

Impairment of Cash-Generating Assets
The role of most public sector entities is to provide services to citizens. However, some public sector entities (other than government business enterprises) may operate assets with the main purpose of generating a commercial return. IPSAS 26, which is based on IAS 36, Impairment of Assets, sets out the procedures for a public sector entity to determine whether a cash-generating asset has lost future economic benefit or service potential and to ensure that impairment losses are recognized in its financial reports. Non cash-generating assets, those used primarily for service delivery, are addressed separately in IPSAS 21, Impairment of Non-Cash-Generating Assets.

"In developing IPSAS 26, the IPSASB is responding to constituents who wanted guidance in dealing with the impairment of assets held by public sector entities for commercial purposes," notes Mr. Hathorn, adding, "The issuance of these two standards represents a further important step in the IPSASB's goal of convergence with IFRSs."

IPSAS 26 is effective for reporting periods beginning on or after April 1 2009.

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 157 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international public sector financial reporting standards through the IPSASB, IFAC, through its independent standard-setting boards, sets ethics, auditing and assurance, and education standards. It also issues guidance to encourage high quality performance by professional accountants in business.

The International Public Sector Accounting Standards Board (IPSASB), an independent standard-setting board within the International Federation of Accountants (IFAC), has issued new requirements to help governments and other public sector entities consistently report on international aid, development grants and other forms of external assistance. The new disclosure requirements and recommendations are set out in the updated International Public Sector Accounting Standard, Financial Reporting under the Cash Basis of Accounting (Cash-Basis IPSAS).

Currently, there are a number of reporting practices between providers and recipients of external assistance that can be costly for recipients. The disclosures in the updated Cash-Basis IPSAS should reduce some of these multiple reporting practices, helping recipients to use resources more efficiently.

The disclosures represent one of a number of steps that the IPSASB has undertaken to enhance its Cash-Basis IPSAS. Recently, the IPSASB approved a project to consider how the standard could be improved based on the experiences of those using it. The project will review the implementation of the Cash-Basis IPSAS in various jurisdictions and assess whether any changes to the standard are needed. The project task force will be chaired by Ms. Erna Swart of South Africa, who became Deputy Chair of the IPSASB in January 2008.

"The introduction of requirements for external assistance disclosures represents the IPSASB's response not only to constituents who are recipients of external assistance, but also external assistance providers," states IPSASB Chair Mike Hathorn. "These disclosures, as well as broader initiatives undertaken by the IPSASB to improve the Cash-Basis IPSAS, will assist public sector entities in their efforts to strengthen their accountability."

The external assistance requirements are effective for reporting periods beginning on or after January 1, 2009.

The Cash-Basis IPSAS, together with other IPSASB standards and guidance, can be downloaded free-of-charge from the IFAC online bookstore: https://www.ifac.org/store.

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 157 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international public sector financial reporting standards through the IPSASB, IFAC, through its independent standard-setting boards, sets ethics, auditing and assurance, and education standards. It also issues guidance to encourage high quality performance by professional accountants in business.

The International Public Sector Accounting Standards Board (IPSASB), an independent standard-setting board within the International Federation of Accountants (IFAC), is seeking comments on an exposure draft (ED) developed as part of its project to enhance the clarity and usability of its International Public Sector Accounting Standard (IPSAS) that addresses accounting for fluctuations in exchange rates. ED 33, Amendments to IPSAS 4, The Effects of Changes in Foreign Exchange Rates, proposes updates to IPSAS 4 to reflect, as appropriate for the public sector, the latest revisions to the corresponding International Financial Reporting Standard (IFRS) issued by the International Accounting Standards Board (IASB). Key proposals in ED 33 reflect amendments made by the IASB to International Accounting Standard 21, The Effects of Changes in Foreign Exchange Rates.

"Converging IPSASs with IFRSs, where appropriate for the public sector, is one of the key objectives of our standards development program," states Mike Hathorn, Chair of the IPSASB. "This exposure draft proposes a number of changes to IPSAS 4, most notably, to clarify and amend the existing guidance for situations where the public sector entity has an interest in a foreign operation."

How to Comment
Comments on the ED are requested by December 31, 2007. The ED may be viewed by going to https://www.ifac.org/EDs. Comments may be submitted by email to publicsectorpubs@ifac.org. They can also be faxed to the attention of the IPSASB Technical Director at +1 (416) 977-8585, or mailed to the IPSASB Technical Director at 277 Wellington Street West, 6th Floor, Toronto, Ontario M5V 3H2, Canada. All comments will be considered a matter of public record and will ultimately be posted on the IFAC website.

Founded in 1977, 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 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international public sector financial reporting standards through the IPSASB, IFAC, through its independent standard-setting boards, sets ethics, auditing and assurance, and education standards. It also issues guidance to encourage high-quality performance by professional accountants in business.

The latest compilations of international auditing, ethics and public sector accounting standards are now available in print and electronic formats from the International Federation of Accountants (IFAC). The 2007 editions of the Handbook of International Auditing, Assurance, and Ethics Pronouncements and the Handbook of International Public Sector Accounting Pronouncements can be ordered in print or downloaded in PDF format from the IFAC website at https://www.ifac.org/store. In addition, the 2007 auditing and ethics handbook can be ordered in a fully searchable electronic eComPress version.The latest compilations of international auditing, ethics and public sector accounting standards are now available in print and electronic formats from the International Federation of Accountants (IFAC). The 2007 editions of the Handbook of International Auditing, Assurance, and Ethics Pronouncements and the Handbook of International Public Sector Accounting Pronouncements can be ordered in print or downloaded in PDF format from the IFAC website at https://www.ifac.org/store. In addition, the 2007 auditing and ethics handbook can be ordered in a fully searchable electronic eComPress version.

Auditing and Assurance Handbook
The 2007 Handbook of International Auditing, Assurance, and Ethics Pronouncements contains all pronouncements of the International Auditing and Assurance Standards Board (IAASB) as of December 31, 2006, including the first four International Standards on Auditing redrafted under the IAASB's clarity drafting conventions. The handbook also contains an updated IFAC Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants in July 2006.

The 2007 handbook can be ordered in print for US$120.00 plus shipping. The handbook is also available in an electronic eComPress format that is fully searchable, easy to navigate, and can be annotated by the reader using the unique "Notes" feature. The eComPress handbook can be ordered for US$50.00 or as a package with the print version for US$150.00 plus shipping. Network versions are also available.

Public Sector Accounting Handbook
The 2007 Handbook of International Public Sector Accounting Pronouncements contains all pronouncements of the International Public Sector Accounting Standards Board (IPSASB) as of December 31, 2006 as well as the updated IFAC Code of Ethics for Professional Accountants. The 2007 handbook features several new International Public Sector Accounting Standards (IPSASs) issued in 2006 as well as 11 IPSASs that were revised as part of the IPSASB's project to converge the IPSASs with their related International Financial Reporting Standards where appropriate for the public sector. The public sector handbook is available in print at no charge, except for a US$15.00 shipping cost.

How to Order The 2007 handbooks can be downloaded in PDF format or print and electronic versions can be ordered from the IFAC online bookstore (https://www.ifac.org/Store). You can also place your order by calling IFAC at +1 (212) 471-8722.

IFAC is the worldwide 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 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.

The International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) has issued revised standards to increase the clarity and usability of International Public Sector Accounting Standards (IPSASs). The 11 revised accrual basis IPSASs and a revised Preface to International Public Sector Accounting Standards are a step towards the IPSASB's goal of achieving convergence.

IPSASs set out the financial reporting requirements by governments and other public sector entities. The IPSASB aims to converge IPSASs with International Financial Reporting Standards (IFRSs), issued by the International Accounting Standards Board, while at the same time also considering public sector specific issues and reflecting public sector emphasis within the standards.

To help apply the IPSASs, the revised Preface to International Public Sector Accounting Standards clarifies that, from now on, all paragraphs within all IPSASs have equal authority.

"Global convergence of financial reporting standards remains one of the key objectives of IFAC and the IPSASB," states Mike Hathorn, IPSASB Chair. "Revising these IPSASs reflects the IPSASB's commitment to progress the IFRS convergence component of its work program, as well as address public sector specific issues not dealt with by IFRSs."

The 11 revised IPSASs are effective for reporting periods beginning on or after January 1, 2008.

The revised IPSASs and the revised Preface to International Public Sector Accounting Standards can be downloaded from the IFAC online bookstore: https://www.ifac.org/store. They will also be included in the 2007 edition of the Handbook of International Public Sector Accounting Pronouncements.

IFAC is the worldwide 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 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international public sector financial reporting standards through the IPSASB, IFAC, through its independent standard-setting boards, sets ethics, auditing and assurance, and education standards. It also issues guidance to encourage high quality performance by professional accountants in business.

Good morning ladies and gentlemen. Thank you for inviting me to speak before you today on a topic that I think is critical to the well being of Sri Lanka and to other countries both in South Asia and worldwide: that is, the importance of corporate governance in the public sector. It is a topic that is receiving increasing attention from the media, the public and governments themselves, although it has been long been of importance to the International Federation of Accountants (IFAC).

For twenty years, IFAC has been working to improve the financial reporting and financial management of governments at all levels - national, state and provincial, and local - as well as that of other public sector entities worldwide. The fiscal accountability of governments is central to enhancing economic growth and development worldwide - one of IFAC's most important goals. Failing to hold governments to account, can, I believe, compromise and even jeopardize ongoing private sector initiatives to building and maintaining confidence in the financial reporting process, lead to friction within government management, and, in less stable environments, result in significant citizen unrest.

Good afternoon ladies and gentlemen. Thank you for inviting me to speak before you today on a topic that I think is critical to the well being of India and to other countries worldwide: that is government financial reporting. It is a topic that is receiving increasing attention from the media, the public and governments themselves, although it has long been of importance to the International Federation of Accountants (IFAC).

It is an issue of significance at all levels of government, including city government. For twenty years, IFAC has been working to improve the financial reporting and financial management of governments at all levels - national, state and provincial, and local - as well as that of other public sector entities worldwide. The fiscal accountability of governments is central to enhancing economic growth and development - one of IFAC's most important goals. Failure to hold governments accountable, can, I believe, compromise and jeopardize private sector initiatives directed at building and maintaining confidence in the financial reporting process, as well as diminishing confidence in democratic processes.