International Federation of Accountants International Public Sector Accounting Standards Board (IPSASB) Richard J. Neville F.C.A (Canada’s voting member) Financial Management Institute - PD Week - 2008 1

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 Financial Management Institute - PD Week - 2008

Financial Management Institute - PD Week - 2008 IPSASB Standing Board within IFAC 15 Members nominated through accounting profession 3 Members nominated through non-accounting profession Supported by the Canadian Government and CICA, NZ and Swiss Governments, World Bank, UN Group, ADB. Technical Director and 4 staff Toronto based, 1 New York, 1 Melbourne Rolling secondment from Chinese Ministry of Finance Financial Management Institute - PD Week - 2008 3

Financial Management Institute - PD Week - 2008 IPSASB process 18 Members including 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 Financial Management Institute - PD Week - 2008 4

Financial Management Institute - PD Week - 2008 Advantages of IPSASs Independent standard setting Qualitative characteristics include - timeliness of reporting relevant, faithful representation, comparability, verifiability, and understandability Improved general purpose financial reporting – improving transparency Greater accountability Fight against fraud and corruption Financial Management Institute - PD Week - 2008 5

Strong Evidence of Progress - 2007 UN System (28 bodies), OECD, NATO (21 bodies), EC, IFAC, INTERPOL More than70 countries have agreed processes or have a project in place to adopt IPSASs or align with IPSASs as part of wider reforms to adopt accrual accounting. Financial Management Institute - PD Week - 2008 6

Strong Evidence of Progress – 2008 Adopters of IPSASs – UN WFP European Commission NATO OECD Financial Management Institute - PD Week - 2008 7

Strong Evidence of Progress – beyond 2009 Adopters of IPSASs – UN System Swiss Government Government of Israel Government of South Africa Brazil, Russia, India, China countries committed to adopt Financial Management Institute - PD Week - 2008 8

Strong Evidence of Progress Examples of adopters of accrual accounting – New Zealand Government Australian Government UK Government Canadian Government French Government Financial Management Institute - PD Week - 2008 9

Financial Management Institute - PD Week - 2008 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 Financial Management Institute - PD Week - 2008 10

Financial Management Institute - PD Week - 2008 Conceptual Framework Applies to the public sector including international and intergovernmental organisations Consultative Document – Objectives, Reporting Entity, Scope and Qualitative Characteristics Publication was September 2008 Financial Management Institute - PD Week - 2008 11

Public Sector Specific Projects Social Benefits – feedback: Oct 2008 Long-Term Fiscal Sustainability - project Service Concessions – feedback: Oct 2008 Narrative Reporting & Performance Reporting – projects CF feedback: May2009 Financial Management Institute - PD Week - 2008 12

Financial Management Institute - PD Week - 2008 IFRS Convergence Target date December 31, 2009 for IFRSs as at December 31, 2008 Relationship with IASB at Board level Financial Management Institute - PD Week - 2008

Financial Management Institute - PD Week - 2008 Development process… IFRS (Private Sector) Terminologies Public sector guideline Public sector issues 1 2 IPSASs (Public sector) Financial Management Institute - PD Week - 2008

Promotion Communication Outreach Proactive rather than reactive Focused Leadership credentials Widespread adoption is the ultimate goal Financial Management Institute - PD Week - 2008 15

Key challenges for IPSASB Growing demand for Standards Credibility of IPSASB - board/staff Completion of Conceptual Framework Meeting Target for IFRS Convergence Relevance to public sector Keeping up with momentum/demand Financial Management Institute - PD Week - 2008 16

Financial Management Institute - PD Week - 2008 Strategic Alliances World Bank – Fiduciary Forum/supporting each other IMF – Strategic partnership/eliminating differences IASB - leadership group at Board level National Standard Setters – providing staff support INTOSAI - leadership in regions Development Banks – IADB; ADB United Nations – major adopter/contributor to open meetings Financial Management Institute - PD Week - 2008 17

Available on 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 Financial Management Institute - PD Week - 2008 18

International Federation of Accountants www.ifac.org Financial Management Institute - PD Week - 2008 1