The Government Finance Statistics Manual 2001 (GFSM 2001)

1
XVII World Congress of Accountants, Istanbul,
Turkey, November 1316, 2006

• The Government Finance Statistics Manual 2001
  (GFSM 2001)
• and
• the International Public Sector Accounting
  Standards (IPSASs)
• Public Sector Financial Reporting Session
• November 16, 2006
• Lucie Laliberté
• Deputy Director
• IMF Statistics Department

2

• The views expressed in this presentation are
  those of the author and should not be attributed
  to the International Monetary Fund, its Executive
  Board, or its management.

3
Outline

• Introduction
• GFSM 2001 Overview
• Country Pilot Studies GFSM 2001
• Convergence of public sector and statistical
  standards
• Next steps

4
1. Introduction

• Both statistical guidelines and accounting
  standards in the public sector draw from broadly
  common principles.
• Emerging developments that brought the two
  systems closer
• internationalization of accounting standards as
  led by the IPSASB,
• greater adoption of fair value of assets in
  accounting standards,
• further harmonization of GFS with macroeconomic
  statistics .

5
1. Introduction

• Task Force on Harmonization of Public Sector
  Accounting (TFHPSA) chaired by the IMF, with the
  International Public Sector Accounting Standards
  Board (IPSASB) and the Organization for Economic
  Cooperation and Development (OECD) as Working
  Group Leaders.
• Objectives of the TFHPSA
• Promote reconciliation of statistics and
  accounting in public accounts.
• Provide inputs for public sector in the update of
  the SNA 93
• http//www.imf.org/external/np/sta/tfhpsa/2006/03/
  pdf/030806a.pdf

6
2. GFSM 2001 System Summarized in 4 Fiscal Tables

• Statement of Operations
• Transactions
• Statement of Other Economic Flows
• Holding gains and losses
• Other changes in volumes of assets
• Integrated Balance Sheet
• Stocks and related flows
• Statement of source and uses of cash
• Cash flows and stock of cash

7
2. GFSM 2001 reporting and accounting reporting

• Statement of Operations
• Transactions
• Statement of Other Economic Flows
• Holding gains and losses
• Other changes in volumes of assets
• Integrated Balance Sheet
• Stocks and related flows
• Statement of source and uses of cash
• Cash flows and stock of cash

• Income Statement/ Statement of Financial
  Performance
• Balance sheet /Statement of Financial Position
• Cash flow statement

8
2. GFSM 2001 Fiscal Indicators

• Net (or Gross) operating balance
• Net lending/borrowing
• Net worth, changes in net worth
• Cash surplus/deficit
• Other analytical balances
• Overall fiscal balance, Primary balance, etc.
• Nominal (and market value) debt are memo items

9
3. Pilots on GFSM 2001

• ObjectiveTo Standardize the Framework for fiscal
  analysis
• Comprehensive framework of GFSM 2001 (3 Tables)
  to support fiscal analysis
• Use of GFSM 2001 will lead to greater
  transparency and consistency
• Support a phased implementation
• Support pilot studies to illustrate usefulness
• 10 Countries identified for pilots (including
  USA)
• Full implementation of GFSM 2001 pursued over
  several years

10
4. Convergence of public sector accounting and
statistical standards (TFHPSA)

• Extensive documentation on the International
  Public Sector Accounting Standards (IPSAS) and
  Government Statistical Guidelines
• Development of a draft accounting standard on the
  General Government Sector (ED 28)
• Chapter on government and public sector in update
  SNA 93
• Private/Public/Government statistical sector
  delineation based on a definition of control
  closer to that of accounting

11
5. Next steps

• Further implementation of GFSM 2001
• Further convergence with international accounting
  standards (e.g., private public partnership,
  accounting conceptual framework)