IPSASBIPSASB 1 International Federation of Accountants International Public Sector Accounting Standards Board (IPSASB) Stuart Barr (Technical Advisor to Sheila Fraser - INTOSAI) INTOSAI PSC October 2008

IPSASBIPSASB 2 The IFAC IPSASB Mission To serve the public interest by developing h igh 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 INTOSAI PSC October 2008

IPSASBIPSASB 3 IPSASB 3 meetings per year 3 meetings per year Open to the public Open to the public All materials publicly available – posted on internet All materials publicly available – posted on internet Transparent due process –you can get involved Transparent due process –you can get involved 18 members -15 from member bodies; 3 public members 18 members -15 from member bodies; 3 public members INTOSAI PSC October 2008

IPSASBIPSASB 4 Strong Evidence of Progress UN System (28 bodies)UN System (28 bodies) OECD, NATO (21 bodies), EC, IFAC, INTERPOLOECD, NATO (21 bodies), EC, IFAC, INTERPOL Over 70 countries have agreed processes or have a project in place to adopt IPSASs or align with IPSASsOver 70 countries have agreed processes or have a project in place to adopt IPSASs or align with IPSASs INTOSAI PSC October 2008

IPSASBIPSASB 5 What’s 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) INTOSAI PSC October 2008

IPSASBIPSASB 6 What’s 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) INTOSAI PSC October 2008

IPSASBIPSASB 7 What’s 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” INTOSAI PSC October 2008

IPSASBIPSASB 8 What’s 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) INTOSAI PSC October 2008

IPSASBIPSASB 9 Today… next year… 5 years on…. Adopted/Adopting–Switzerland, South Africa, Ghana, Philippines, Armenia, United NationsAdopted/Adopting–Switzerland, South Africa, Ghana, Philippines, Armenia, United Nations We need to provide support Benchmark – Canada, US, Australia, NZ, UKBenchmark – Canada, US, Australia, NZ, UK We must collaborate to encourage convergence Leadership and Promotion – India, ChinaLeadership and Promotion – India, China We need to promote to encourage adoption INTOSAI PSC October 2008

IPSASBIPSASB 10 IPSASB Strategic Themes Public sector conceptual frameworkPublic sector conceptual framework Public sector specific projectsPublic sector specific projects IFRS ConvergenceIFRS Convergence Promotion and communicationsPromotion and communications INTOSAI PSC October 2008

IPSASBIPSASB 11 Public Sector Conceptual Framework - Objectives, Scope, Qualitative Characteristics, and Reporting Entity Group 1 - Objectives, Scope, Qualitative Characteristics, and Reporting Entity Elements of Financial Statements and wider GPFRs Group 2 - Elements of Financial Statements and wider GPFRs Measurement, presentation and disclosure Group 3 – Measurement, presentation and disclosure Consequences for Cash Basis Group 4- Consequences for Cash Basis INTOSAI PSC October 2008

IPSASBIPSASB 12 Public Sector Conceptual Framework Group 1- Consultation paper issued September 2008 Group 1- Consultation paper issued September 2008 Group 2 – Definition & recognition of elements – Consultation Paper early 2009 Group 2 – Definition & recognition of elements – Consultation Paper early 2009 INTOSAI PSC October 2008

IPSASBIPSASB 13 Public Sector Specific Projects Social benefitsSocial benefits Long-term fiscal sustainabilityLong-term fiscal sustainability Service concession arrangementsService concession arrangements INTOSAI PSC October 2008

IPSASBIPSASB 14 Social Benefits Limited scopeLimited scope ED on disclosures of cash transfers to individuals/households issued February 2008ED on disclosures of cash transfers to individuals/households issued February 2008 Consultation paper explaining positionConsultation paper explaining position Link to initiating long-term fiscal sustainability projectLink to initiating long-term fiscal sustainability project INTOSAI PSC October 2008

IPSASBIPSASB 15 Long Term Fiscal Sustainability Early daysEarly days Task force met in early SeptemberTask force met in early September Initial discussion October 2008Initial discussion October 2008 Consultation paper to be considered February 2009Consultation paper to be considered February 2009 INTOSAI PSC October 2008

IPSASBIPSASB 16 Service Concession Arrangements Consultation paper issued March 2008Consultation paper issued March 2008 Positive feedback on potential for global solutionPositive feedback on potential for global solution Control approachControl approach Measure asset/liability at fair value of propertyMeasure asset/liability at fair value of property DisclosuresDisclosures INTOSAI PSC October 2008

IPSASBIPSASB 17 IFRS Convergence Target date December 31, 2009 of December 31, 2008 Target date December 31, 2009 of December 31, 2008 “Rules of the Road” – guidelines for modifying and documenting departures “Rules of the Road” – guidelines for modifying and documenting departures Relationship with IASB renewed focus Relationship with IASB renewed focus INTOSAI PSC October 2008

IPSASBIPSASB 18 Development process… IPSASs (Public sector) IFRS (Private Sector) Terminologies Public sector guideline Public sector issues 1 2 INTOSAI PSC October 2008

IPSASBIPSASB 19 Financial Instruments Plan: 3 IPSASs in 2009 based on: 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 IPSASs will also address public sector specific instruments and issues IPSAS 15 to be withdrawn when new IPSASs issued IPSAS 15 to be withdrawn when new IPSASs issued Financial Instruments INTOSAI PSC October 2008

IPSASBIPSASB 20 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 INTOSAI PSC October 2008

IPSASBIPSASB 21 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 INTOSAI PSC October 2008

IPSASBIPSASB 22 IPSASB over next few years IFRS convergence - notably IFRS convergence - notably FI FI Entity combinations Entity combinations Intangible assets Intangible assets Agriculture Agriculture Annual improvements Annual improvements INTOSAI PSC October 2008

IPSASBIPSASB 23 IPSASB over next few years Conceptual framework Conceptual framework Social benefits & long term fiscal sustainability Social benefits & long term fiscal sustainability Service concession arrangements Service concession arrangements Performance reporting – potential audit issues Performance reporting – potential audit issues INTOSAI PSC October 2008

IPSASBIPSASB 24 Partnerships Working World Bank and Development Banks – External Assistance StandardWorld Bank and Development Banks – External Assistance Standard IMF – PPP StandardIMF – PPP Standard IFAC – DNC – External Assistance StandardIFAC – DNC – External Assistance Standard IASB – PPP Standard and Conceptual FrameworkIASB – PPP Standard and Conceptual Framework National Standard Setters - PPP Standard and Conceptual FrameworkNational Standard Setters - PPP Standard and Conceptual Framework INTOSAI – all of the above!INTOSAI – all of the above! INTOSAI PSC October 2008

IPSASBIPSASB 25 Keep up to date on IPSASB projects IPSASB Project Pages – all IPSASB projects Project Pages – all IPSASB projects IFAC eNews – Free electronic newsletterIFAC eNews – Free electronic newsletter –Enroll at INTOSAI PSC October 2008

IPSASBIPSASB 26 International Federation of Accountants INTOSAI PSC October 2008