Accounting Standards (IPSAS)

italiansaucySoftware and s/w Development

Dec 13, 2013 (3 years and 3 months ago)

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International Public Sector
Accounting Standards (IPSAS)

Thomas
Müller
-
Marqués

Berger

IPSASB Member


The Exchange, Abu Dhabi

13 May 2013


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1.
The IPSASB’s Work Program

2.
Overview of IPSASB’s Current Projects

3.
Challenges of an IPSAS Implementation


Agenda

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Overview

of

the

Development
of


IPSASB‘s

Work Program

The IPSASB’s Work Program

Current work program of the IPSASB


Through
financial support of international institutions

development
of a first set of accounting standards

(“
Core Set”: IPSAS 1


IPSAS 20
)

Phase 1

(1997
-
2002)

Phase 3

(since
2010)

Phase 2

(2003
-
2010)


Where relevant for the public sector,
convergence

with IAS/IFRS as of 31.12.2008 was achieved



Issuance of first standards to specific issues

of the public sector (IPSAS 21


IPSAS 24)


Development
of a Conceptual Framework for the public sector


Focus
on specific issues of the public sector as well as further

development
of existing standards
(IFRSs convergence)

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Relevant
Issues

and

Work Program
of

the

IPSASB

The IPSASB’s Work Program

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Structured Project
Overview

Overview of IPSASB’s Current Projects


ED

CP

Research

General
Purpose

Financial Reports

IPSAS

GPFS

Framework

RPG

IPSAS

ED

CP

Research

First Time Adoption

Revision IPSAS 6
-
8, GBE

PSC

GFS
Alignment

Phase I

LTFS

FSD&A

SPR

Phases

II
-
IV

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Conceptual

Framework Project (2)

Overview of IPSASB’s Current Projects

Public
Sector

Conceptual

Framework

IPSASs
and

RPGs

Phase 2


Elements
and

Recognition

Phase 3


Measure
-
ment

Phase 4


Presenta
-
tion


Phase 1


Role


Objectives

and

Users


QCs


Reporting
Entity


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Conceptual

Framework Project (1)

Status/Papers

Phase 1: Approved at December 2012 meeting, 4 final chapters
of Conceptual Framework were published January 2013

Phase 2 and 3: EDs approved in September 2012 meeting

Phase 4: ED approved at March 2013 meeting

Objective and
major issues

Objectives:
to develop a Public Sector Conceptual Framework
which is applicable to the preparation and presentation of
general purpose financial reports of public sector entities,
including but not necessarily limited to financial statements and
notes thereto.

Major issues:


Primarily for public sector entities other than GBEs


No simple interpretation of the IASB’s Framework


Address specific circumstances of the public sector

What’s next?

Comments to the EDs Phase 2 and 3 due: April 30, 2013

Comments to ED Phase 4 due: August 15, 2013

Overview of IPSASB’s Current Projects

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The
Current

Agenda Schedule 2013/2014

Overview of IPSASB’s Current Projects

Mar
13

Jun 13

Sept
13

Dec

13

Mar
14

Jun 14

Sept 14

CF Phase 2:

Elements

Final

CF

Phase 3: Measurement

Final

CF

Phase 4:
Presentation

ED

Final

Long
-
term

Fiscal

Sustainability

RPG

Service Performance
Reporting

ED

Financial Statement
Discussion

and

A
nalysis

RPG

Public
Sector

Combinations

ED

First time

Adoption
of

Accrual

Basis IPSAS

ED

IPSASs

&
statistical

reporting

ED

Revision

IPSAS 6
-
8

ED

IPSAS

Government

Business
Enterprises

ED

IPSAS

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An IPSAS implementation can be challenging



and much depends on where you start from!

Challenges of an IPSAS Implementation

(Modified)
Cash
Basis

(Modified)

Accrual
Basis

Non
-
IPSAS
-
Compliance

IPSAS
-
Compliance



Cash
Basis

Accrual
Basis

Cash
Basis

Accrual
Basis

Cash
Basis

Accrual
Basis

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Main Challenges


Political/Executive support


Legal framework


Accrual accounting know how/capacity
building


Staff capacities for reform


IT/ERP system implementation


Impact of reform on
organisation
, i.e.
changes to processes and systems


Registration and measurement of
assets and liabilities/opening balance
sheet

Organization

Technology

Process

Changes

in

Presentation

New

Valuation

Rules

Additional

Disclosure

Requirements

IPSAS

Conversion

ERP Environment

Financial Systems


Architecture

1.
IPSAS
conversion will impact all levels of
accounting in
a government!

2.
IPSAS
conversions will impact several
areas
outside
of the accounting
function!

3.

A
top level conversion to
IPSAS
may not
be
sufficient!

Conversion Impact and Challenges

Conversion
scope
/
content

Challenges of an IPSAS Implementation

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Thank you for your attention.