Interpretation and Application of IPSAS (eBook)

Caroline Aggestam-Pontoppidan, Isabelle Andernack (Autoren)

eBook Download: EPUB

2015
John Wiley & Sons (Verlag)
9781119010302 (ISBN)

Infos

Clear, practical IPSAS guidance, explanation, and examples

Interpretation and Application of IPSAS provides practical guidance on the implementation and application of the International Public Sector Accounting Standards. This book brings readers up to date on the standards, and describes their proper interpretation and real-world application. Examples and mini-case studies clarify the standards' roles throughout, giving readers a better understanding of complex processes, especially where the IPSAS deviate from IFRS. Readers also gain insight into smoothly navigating the transition for a public sector entity, which is moving to either IPSAS under accrual basis of accounting or to cash accounting IPSAS, plus an overview of IPSAS adoption status and methods around the world.

Global public sector accounting is highly diversified, resulting in ongoing moves to harmonise standards worldwide. The IPSAS are international standards that largely follow the IFRS model, but differ in some key areas and include standards in places where IFRS has none. This book provides complete guidance to IPSAS, with clear explanation and expert insight.

• Understand the meaning and role of each standard
• Apply the standards to real-world scenarios
• Manage the process of transition to IPSAS

These standards are meant to be followed by all public sector entities, including national and regional governments and local authorities. They've been adopted by the UN, NATO, the European Commission, and others, and either have been or soon will be adopted in Malaysia, Switzerland, Spain, and more.

Autor

Caroline Aggestam Pontoppidan, Copenhagen, Denmark is an Associate Professor in Public Sector Accounting and Auditing at Copenhagen Business School. She is also a project manager for UNOPS (an operational arm of the United Nations, helping a range of partners implement $1 billion worth of aid and development projects every year) overseeing the implementation of International Public Sector Accounting (IPSAS). Previous experience includes audit work and project management with The Global Fund to fight Aids, Tuberculosis and Malaria, Geneva, Switzerland, UNCTAD, Geneva, Switzerland and the UNICEF Supply Division, Copenhagen. Isabelle Andernack, Meudon-la-Forêt, France is Accountancy Administrator, BIPM (International Bureau of Weights & Measures). She is the project leader of the BIPM transition from cash accounting to the accrual basis of accounting under IPSAS. Her current teaching activities include: IPSAS, consolidation and public management courses at Paris I Panthéon-Sorbonne (Master 2 Audit, Contrôle et Management Public), IFRS in order to prepare the CIIA at CFAF (Training Centre for Financial Analysts). She is formerly a Partner, and Technical Director of audit division, Fiducial Audit, as well as having worked in the Audit and IFRS teams at Deloitte, PwC and KPMG.

Inhalt

Foreword vii

Acknowledgements ix

About the Authors xi

List of IPSAS with Corresponding IFRS xiii

List of IPSAS with Brief Description xv

Part 1 Introducing Public Sector Accounting

1 Introduction 3

2 Why Converge Public Sector Accounting Practices? 11

3 The IPSASB 17

Part 2 Accrual-based IPSAS

4 The IPSASB Conceptual Framework and Key Accrual Accounting Concepts 35

5 Financial Statements 55

6 Disclosure Standards 109

7 Long-Term (Non-Current) Assets 123

8 Current Assets 167

9 Service Concession Arrangements: Grantor 175

10 Leases and Leasing Arrangements 187

11 Revenues and Expenses 207

12 Employee Benefits, Social Benefits, and Other Liabilities 243

13 Provisions and Contingencies 257

14 Budget Reporting 271

15 Financial Instruments 285

16 Consolidations and Strategic Investments 307

17 Specific Standards: Accounting for Agriculture and Accounting in Hyperinflation Economies 327

18 Recommended Practice Guidelines (RPGs) 339

Part 3 Cash-Based IPSAS

19 Cash Basis IPSAS 351

Part 4 Making the Transition to IPSAS and Closing

20 Making the Transition to IPSAS 375

Conclusion 407

Annex 1: Brief Description of IPSAS 409

Annex 2: Key Characteristics of Public Sector Entities 413

Annex 3: Employee Benefits: An Overview of the Key Principles 415

Annex 4: Appendix to Chapter 21. Transition to IPSAS. Case Example: Iceland IPSAS Implementation Plan 417

Bibliography 425

Index

Textauszug

1 Introduction

International Public Sector Accounting Standards (IPSAS) are gaining increasing acceptance globally (see Table 1.1 for a full listing of all IPSAS). Public administrators are today encountering important challenges in reducing the distance between accounting systems within countries as well as across borders. This entails a move towards harmonization1 of accounting practices in the public sector and thus requires choosing an appropriate set of accounting and financial reporting standards (see also Caperchione, 2015).

Table 1.1 Full listing of all IPSAS and IFRS “equivalent” as at 1 March 2015

IPSAS

IFRS “equivalent” (if applicable)

IPSAS 1—Presentation of Financial Statements

IAS 1

IPSAS 2—Cash Flow Statements

IAS 7

IPSAS 3—Accounting Policies, Changes in Accounting Estimates and Errors

IAS 8

IPSAS 4—The Effects of Changes in Foreign Exchange Rates

IAS 21

IPSAS 5—Borrowing Costs

IAS 23

IPSAS 6—Consolidated and Separate Financial Statements6

IAS 27 (replaced)

IPSAS 7—Investments in Associates7

IAS 28 (replaced)

IPSAS 8—Interests in Joint Ventures8

IAS 31 (replaced)

IPSAS 9—Revenue from Exchange Transactions

IAS 18

IPSAS 10—Financial Reporting in Hyperinflationary Economies

IAS 29

IPSAS 11—Construction Contracts

IAS 11

IPSAS 12—Inventories

IAS 2

IPSAS 13—Leases

IAS 17

IPSAS 14—Events after the Reporting Date

IAS 10

IPSAS 15— (withdrawn)9

IPSAS 16—Investment Property

IAS 40

IPSAS 17—Property, Plant, and Equipment

IAS 16

IPSAS 18—Segment Reporting

IAS 14 (replaced)

IPSAS 19—Provisions, Contingent Liabilities and Contingent Assets

IAS 37

IPSAS 20—Related Party Disclosures

IAS 24

IPSAS 21—Impairment of Non-Cash-Generating Assets

N/A10

IPSAS 22—Disclosure of Information about the General Government Sector

N/A

IPSAS 23—Revenue from Non-Exchange Transactions (Taxes and Transfers)

N/A

IPSAS 24—Presentation of Budget Information in Financial Statements

N/A

IPSAS 25—Employee Benefits

IAS 19

IPSAS 26—Impairment of Cash-Generating Assets

IAS 36

IPSAS 27—Agriculture

IAS 41

IPSAS 28—Financial Instruments: Presentation

IAS 32

IPSAS 29—Financial Instruments: Recognition and Measurement

IAS 39

IPSAS 30—Financial Instruments: Disclosures

IFRS 7

IPSAS 31—Intangible Assets

IAS 38

IPSAS 32—Service Concession Arrangements: grantor

N/A

IPSAS 33—First-Time Adoption of Accrual Basis IPSASs An entity shall apply those amendments for annual financial statements covering periods beginning on or after 1 January 2017. Earlier application is permitted. If an entity applies IPSAS 33 for a period beginning before 1 January 2017, the amendments shall also be applied for that earlier period.

IFRS 1

IPSAS 34—Separate Financial Statements An entity shall apply this Standard for annual financial statements covering periods beginning on or after 1 January 2017. Earlier application is encouraged. If an entity applies this Standard for a period beginning before 1 January 2017, it shall disclose that fact and apply IPSAS 35, IPSAS 36, IPSAS 37, and IPSAS 38 at the same time.

IAS 27 (2011)

IPSAS 35—Consolidated Financial Statements An entity shall apply this Standard for annual financial statements covering periods beginning on or after 1 January 2017. Earlier application is encouraged. If an entity applies this Standard for a period beginning before 1 January 2017, it shall disclose that fact and apply IPSAS 34, Separate Financial Statements, IPSAS 36, IPSAS 37, and IPSAS 38 at the same time.

IFRS 10

IPSAS 36—Investments in Associates and Joint Ventures An entity shall apply this Standard for annual financial statements covering periods beginning on or after 1 January 2017. Earlier application is encouraged. If an entity applies this Standard for a period beginning before 1 January 2017, it shall disclose that fact and apply IPSAS 34, IPSAS 35, IPSAS 37, and IPSAS 38, Disclosure of Interests in Other Entities, at the same time.

IAS 28 (2011)

IPSAS 37—Joint Arrangements An entity shall apply this Standard for annual financial statements covering periods beginning on or after 1 January 2017. Earlier application is encouraged. If an entity applies this Standard for a period beginning before 1 January 2017, it shall disclose that fact and apply IPSAS 34, IPSAS 35, IPSAS 36 and IPSAS 38, Disclosure of Interests in Other Entities, at the same time.

IFRS 11

IPSAS 38—Disclosure of Interests in Other Entities An entity shall apply this Standard for annual financial statements covering periods beginning on or after 1 January 2017. Earlier application is encouraged.

IFRS 12

The focus on creating one common set of standards at the global level is relatively new, in comparison to what we have witnessed for the private sector, with the global spread and institutionalization of International Financial Reporting Standards (IFRS) (see also for example Ball, 2012).

Many governments across the globe operate on a cash basis (or modified cash basis2) and do not account for many significant items, such as liabilities for public sector pensions and financial instruments. Accrual accounting is a fundamental tenet of strong accounting and reporting for public companies, and so it should be for governments as well. This is why the adoption of accrual accounting by public sector entities should result in a more comprehensive and accurate view of the financial position, and help to ensure that governments and other public sector entities are transparent and accountable. It should also be noted, however, that in some cases, governments do not have standardized practices for applying cash-basis accounting and, in such cases, applying cash-basis IPSAS could be a first step towards transparency and accountability.

The International Public Sector Accounting Standards Board (IPSASB) and the IPSAS that it establishes have increasingly become a point for international standardization and reference within the area of public sector accounting. The IPSASB is, today, an independent standard-setting board under the auspices of the International Federation of Accountants (IFAC). It has been said that the issuing of the complete Conceptual Framework in 2014 has served as a “landmark document that firmly places IPSASB alongside its private sector counterpart, the International Accounting Standards Board (IASB), as an international standard setter” (Cain, 2014).

Aim of the Book

The aim of this book is to provide the reader with an overview of IPSAS with a focus on their practical application and interpretation. With this in mind, the book includes numerous examples of their application by governments and public sector entities that are issuing IPSAS-compliant financial statements. By drawing on examples, practice highlights on specific accounting and reporting issues, and IPSAS, this book seeks to be a comprehensive guide on how to apply accrual-based IPSAS as well as cash basis. The book thus aims to serve as a practical implementation guide for IPSAS for practitioners, policy makers, academics, and students. Nevertheless, we would like to emphasize that this book is not a replacement for reading the standards themselves. We therefore recommend reading this book in conjunction with the full suite of IPSAS3 in order to ensure that knowledge of all aspects of IPSAS is gained.

Readers will be able to find the answers to questions such as:

• What is the role and history of IPSASB?
• What is the scope of accrual-based IPSAS?
• What is prescribed in the suite of IPSAS for accrual basis accounting?
• What options do accrual-based IPSAS provide for measurement...

Produkt-Details

• Erscheint lt. Verlag: 30.11.2015
• Reihe/Serie: Wiley Regulatory Reporting
• Reihe/Serie: Wiley Regulatory Reporting
• Reihe/Serie: Wiley Regulatory Reporting
• Sprache: englisch
• Themenwelt: Recht / Steuern ► Wirtschaftsrecht
• Themenwelt: Sozialwissenschaften ► Politik / Verwaltung ► Staat / Verwaltung
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Rechnungswesen / Bilanzen
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Unternehmensführung / Management
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Wirtschaftspolitik
• Schlagworte: 2015 IPSAS • Accounting • Accounting Special Topics • Caroline Aggestam-Pontoppidan • cash accounting IPSAS • Government Accounting • International Accounting • International accounting standards • Internationales Rechnungswesen • International Public Sector Accounting Standards • Interpretation and Application of IPSAS • IPSAS accrual basis • IPSAS adoption • IPSAS application • IPSASB • IPSAS compliance • IPSAS examples • IPSAS explained • IPSAS how to • IPSAS implementation • IPSAS in English • IPSAS interpretation • IPSAS reference • IPSAS resources • IPSAS text • IPSAS transition • IPSAS vs. IFRS • practical IPSAS • Public Sector Accounting Standards • Rechnungswesen • Spezialthemen Rechnungswesen • Staatliches Rechnungswesen
• ISBN-13: 9781119010302 / 9781119010302