Transcript International Public Sector Accounting Standards Board (IPSASB) Update on Activities Mike Hathorn Chair IPSASB.

International Public Sector Accounting
Standards Board (IPSASB)
Update on Activities
Mike Hathorn
Chair IPSASB
IFAC IPSASB
Overview
• Background
• IPSASB Strategic Themes
• Project Updates – Present and Future
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IFAC IPSASB
IPSASB
• Standing Board within IFAC
• Develops International Public Sector Accounting
Standards (IPSASs) – accrual and cash
• Supported by the Canadian Government and CICA, NZ
and Swiss Governments, World Bank, UN Group , ADB.
• Technical Director and 3 staff Toronto based, 1 New
York, 1 Melbourne and 1 UK
• Rolling secondment from Chinese Ministry of Finance
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IFAC IPSASB
IPSASB Process
• 18 Members (3 Public Members)
• Meets 3 times per year
• 4 day meetings which may include a regional seminar
and/or a consultative group meeting.
• Open to the public
• All materials publicly available – posted on internet
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IFAC IPSASB
Developing Standards
• Accrual based standards
• Convergence with IFRSs unless public sector specific
reason for departure – ‘Rules of the Road’
• Public sector specific standards
• Current hierarchy – where no IPSAS exists consider IASB
standards or national standards
• Task Force to review Cash-basis IPSAS
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IFAC IPSASB
Transparent “Due Process”
• Exposure drafts: at least 4 months for comment
• Analyses of submissions
• Sub Committees, Task Forces, Project Advisory Panels
(PAP)
• Consultative Group
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IFAC IPSASB
Available on the IPSASB Web Site:
• All IPSASs (26 accrual plus 1 cash basis)
– (including Spanish and French translations)
• All current Exposure Drafts and other publications
• IPSASB Updates on most recent IPSASB meetings
• IPSASB meeting papers (before each meeting)
• Project histories
FREE OF CHARGE AT: WWW.IFAC.ORG/PublicSector
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IFAC IPSASB
Strong Evidence of Progress
• UN System (28 bodies)
• OECD, NATO (21 bodies), EC, IFAC, INTERPOL
• Almost 70 countries have agreed processes or have a
project in place to adopt IPSASs or align with IPSASs
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IFAC IPSASB
Disclosures by recipients of external
assistance
• Aims to harmonize/reduce compliance costs
• Requested by OECD/multi-laterals/bi-laterals
• Approved at Beijing meeting and incorporated into cash
basis IPSAS in early 2008
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IFAC IPSASB
Strategic Themes
• Conceptual framework for public sector
• Public sector specific issues including convergence with
statistical bases where appropriate
• IFRS convergence – ‘Rules of the Road’
• Promotion & communication
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IFAC IPSASB
Conceptual Framework
• Group 1 Consultative Document topics to be considered
in March 2008 as one document – Objectives, Reporting
Entity, Scope and Qualitative Characteristics
• Final review June 2008
• Group 2 topics to be considered in June 2008.
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IFAC IPSASB
Social Benefits : Current Approach
• ED 34: Disclosure of Cash Transfers to Individuals or
Households
– requires disclosure of amounts expected to be
transferred to eligible individuals or households (not
recognition and measurement)
– ED 34 approved in principle at Beijing meeting
• Consultation Paper on “Social Benefits: Key Issues in
Recognition and Measurement”
– approved in late February
• Initiation of project on long-term fiscal sustainability
– project brief will be made publicly available
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IFAC IPSASB
Service Concessions
IFRIC 12: Service Concession Arrangements issued: November 2006
• Operators only not grantors so limited direct applicability in public
sector
• Based on control
IPSASB Project:
Sub Committee supported by US GASB Staff
• Not constrained by existing accounting guidance/approaches
• Consultation Paper: for approval in March 2008
• Possible accounting approaches:
• Control
• Risks and rewards
• Reversion of asset
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IFAC IPSASB
IFRS Convergence
• Convergence strategy to update to IASB Standards as at
December 2008 by December 2009
• IPSAS 25, “Employee Benefits”
• IPSAS 26, “Impairment of Cash-Generating Assets”
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IFAC IPSASB
Rules of the Road: Purpose (1)
• Codify when divergence from IFRS is appropriate
• Clear statement of how IPSASB decides whether to depart
from IFRS and when to initiate public sector specific
project
• Approved at Beijing meeting
• Test during 2008 before going on website
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IFAC IPSASB
Rules of the Road : Key Steps(2)
• Step One: Are there public sector issues that warrant
departure?
• Step Two: Are the departures so significant that a public
sector specific project should be initiated?
• Step Three: Modify IASB documents.
• Step Four: Issue IPSAS
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IFAC IPSASB
Other IFRS Convergence Topics
Financial Instruments
• Update IPSAS 15 on presentation to converge with IAS 32
• Develop IPSAS on disclosure based on IFRS 7
• Issues Paper to be considered at March 2008 meeting
• Aim to issue ED later in 2008
Foreign Exchange
• Update IPSAS 4 (ED 33 released July 2007)
Borrowing Costs
• Update IPSAS 5
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IFAC IPSASB
Topics in work plan for 2008 and 2009
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Entity combinations
Intangible assets
Financial instruments – recognition and measurement
Fair Value
Management’s Discussion & Analysis (MD&A)/Narrative
Reporting
• Performance Reporting
Further consideration of work plan at March 2008 meeting
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International Federation of Accountants
www.ifac.org