INTERNATIONAL FEDERATION OF ACCOUNTANTS

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International Federation of Accountants
International Public Sector Accounting Standards
Board (IPSASB) Stuart Barr (Technical Advisor
to Sheila Fraser - INTOSAI)
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The IFAC IPSASB Mission

• To serve the public interest by developing high
  quality accounting standards for use by public
  sector entities around the world, including
  international organisations, in the preparation
  of general purpose financial statements.
• IFAC IPSASB is providing the benchmark

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IPSASB

• 3 meetings per year
• Open to the public
• All materials publicly available posted on
  internet
• Transparent due process you can get involved
• 18 members -15 from member bodies 3 public
  members

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Strong Evidence of Progress

• UN System (28 bodies)
• OECD, NATO (21 bodies), EC, IFAC, INTERPOL
• Over 70 countries have agreed processes or have a
  project in place to adopt IPSASs or align with
  IPSASs

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Whats been issued.2006

• IPSAS 1, Presentation of Financial Statements
  (Revised)
• IPSAS 3, Accounting Policies, Changes in
  Accounting Estimates and Errors (Revised)
• IPSAS 6, Consolidated and Separate Financial
  Statements (Revised)
• IPSAS 7, Investments in Associates (Revised)
• IPSAS 8, Interests in Joint Ventures (Revised)

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Whats been issued.2006

• IPSAS 12, Inventories (Revised)
• IPSAS 13, Leases (Revised)
• IPSAS 14, Events After the Reporting Date
  (Revised)
• IPSAS 16, Investment Property (Revised)
• IPSAS 17, Property, Plant and Equipment
  (Revised)

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Whats been issued.2006

• IPSAS 22, Disclosure of Information about the
  General Government Sector
• IPSAS 23, Revenue from Non-Exchange Transactions
  (Taxes and Transfers)
• IPSAS 24, Presentation of Budget Information in
  Financial Statements

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Whats been issued.2008

• IPSAS 4, The Effects of Changes in Foreign
  Exchange Rates (Revised)
• IPSAS 21, Impairment of Non-Cash-Generating
  Assets (Revised)
• IPSAS 25, Employee Benefits
• IPSAS 26, Impairment of Cash-Generating Assets
• Cash Basis IPSAS, Financial Reporting Under the
  Cash Basis of Accounting (Revised)

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Today next year 5 years on.

• Adopted/AdoptingSwitzerland, South Africa,
  Ghana, Philippines, Armenia, United Nations
• We need to provide support
• Benchmark Canada, US, Australia, NZ, UK
• We must collaborate to encourage convergence
• Leadership and Promotion India, China
• We need to promote to encourage adoption

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IPSASB Strategic Themes

• Public sector conceptual framework
• Public sector specific projects
• IFRS Convergence
• Promotion and communications

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Public Sector Conceptual Framework

• Group 1 - Objectives, Scope, Qualitative
  Characteristics, and Reporting Entity
• Group 2 - Elements of Financial Statements and
  wider GPFRs
• Group 3 Measurement, presentation and
  disclosure
• Group 4- Consequences for Cash Basis

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Public Sector Conceptual Framework

• Group 1- Consultation paper issued September 2008
• Group 2 Definition recognition of elements
  Consultation Paper early 2009

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Public Sector Specific Projects

• Social benefits
• Long-term fiscal sustainability
• Service concession arrangements

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Social Benefits

• Limited scope
• ED on disclosures of cash transfers to
  individuals/households issued February 2008
• Consultation paper explaining position
• Link to initiating long-term fiscal
  sustainability project

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Long Term Fiscal Sustainability

• Early days
• Task force met in early September
• Initial discussion October 2008
• Consultation paper to be considered February 2009

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Service Concession Arrangements

• Consultation paper issued March 2008
• Positive feedback on potential for global
  solution
• Control approach
• Measure asset/liability at fair value of property
• Disclosures

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IFRS Convergence

• Target date December 31, 2009 of IFRS _at_ December
  31, 2008
• Rules of the Road guidelines for modifying
  and documenting departures
• Relationship with IASB renewed focus

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Development process

• Terminologies
• Public sector guideline
• Public sector issues

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Financial Instruments
Financial Instruments

• Plan 3 IPSASs in 2009 based on
• IAS 32 Financial Instruments Presentation
• IAS 39 FI Recognition Measurement
• IFRS 7 FI Disclosure
• IPSASs will also address public sector specific
  instruments and issues
• IPSAS 15 to be withdrawn when new IPSASs issued

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Intangible Assets

• Agreed to a convergence project based on IAS 38
• Rights granted by statute are they assets?
• Exposure draft to be considered October 2008

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Entity Combinations

• 2 separate IPSASs to be developed
• IPSAS converged with IFRS 3 exchange (non
  common control)
• Public sector specific IPSAS non-exchange (non
  common control and common control)
• Converged ED and issues paper - February 2009

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IPSASB over next few years

• IFRS convergence - notably
• FI
• Entity combinations
• Intangible assets
• Agriculture
• Annual improvements
•  

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IPSASB over next few years

• Conceptual framework
• Social benefits long term fiscal sustainability
• Service concession arrangements
• Performance reporting potential audit issues

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Partnerships Working

• World Bank and Development Banks External
  Assistance Standard
• IMF PPP Standard
• IFAC DNC External Assistance Standard
• IASB PPP Standard and Conceptual Framework
• National Standard Setters - PPP Standard and
  Conceptual Framework
• INTOSAI all of the above!

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Keep up to date on IPSASB projects

• IPSASB Project Pages all IPSASB projects
  http//www.ifac.org/PublicSector/
• IFAC eNews Free electronic newsletter
• Enroll at www.ifac.org

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International Federation of Accountants www.ifac.o
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