Task Force on International Public Accounts Standards OECD National Accounts Experts meeting, Paris October, 2003 Task Force on International Public Accounts Standards OECD National Accounts Experts meeting, Paris October, 2003 Lucie Laliberté Statistics Department International Monetary Fund

Worldwide trend toward greater accountability and transparency in government finances: 1993 SNA/ ESA 95 is the umbrella standard for macroeconomic statistics, of which Government Finance Statistics 2001 (GFSM 2001). Statistical standards are being updated. As there are no authoritative accounting sector for the public sector, the International Federation of Accountants Public Sector Committee (IFAC PSC) has issued as of September standards for public accounting. In response to rising concerns by users who are experiencing difficulties in understanding and reconciling the macro (statistical) and micro (public accounting), an international project was launched in 2003 for the greater harmonization between statistical and public accounting systems at this critical juncture of both systems being under review.

International Public Sector Accounting Standards (IPSAS) Aim of IPSAS is to improve public sector financial management and accountability and their adoption by governments 21 IPSAS issued by IFAC PSC (20 standards on the accrual basis of accounting and one on the cash basis) Harmonized with the International Accouting Standards (IASs)/International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB)

Project for further harmonization of public sector accounting A follow up to: February 2003 OECD Annual Accruals Symposium in Paris June 2003 GFS/1993 SNA/ESA 95/IPSAS Convergence Working Group meeting in Washington October 2003 Steering Committee on a Task Force on International Public Accounts in Paris

Steering Committee on Task Force on International Public Accounts Composed of IMF, OECD, Eurostat, European Central Bank, IFAC, IASB together with individual countries Identified detailed lists of differences –between IPASs and GFS –among 1993 SNA, ESA 95 and GFS Prioritized these differences for submission to the Task Force.

Task Force on International Public Sector Accounting (TFIPSA) Aim: Study the feasibility of harmonizing differences in international statistical standards and government accounting. Outputs: –Establish list of government related issues for ISWGNA consideration in updating 1993 SNA –Establish a list to encourage harmonization between IPSAS and GFS for consideration by the PSC and GFSM 2001

Organizational Structure of TFIPSA Chaired by the IMF, with OECD Secretariat Two Working Groups: –one focusing on data sources (IPSAS/GFS) led by PSC, –one focusing on statistical outputs (GFS/1993 SNA/ESA 95) led by the OECD. Composition: National macroeconomic statisticians and public accountants as well as standard setters and international/supranational organizations. Schedule of meetings: –February 2004 –February 2005

Convergence The International Task Force has been recognised as an ISWGNA task Force A first list of possible clarifications/changes needed in the SNA for convergence has been forwarded to the ISWGNA Objective: draft a special Annex / chapter of the SNA on general government accounts

Issues for discussion Five issues for discussion in 2004 – Capital injection / super dividends – Privatisation / restructuring agencies / securitisation – Guarantee / contingent assets / provisions / constructive obligations – Public / private delineation – Tax revenue / tax credits / uncollectable tax In the mandate, the inclusion in this annex of the issues discussed in the European « Manual on Government Deficit and Debt ».

Next steps The task force will be invited by the OECD Accrual Symposium (network of Senior Budget Officials) to present its first results Meeting February 2004 Experts on general government from national accounts will be invited Draft agenda: –Discussions on the set of priority items for convergence –Comparability of general government perimeter (universities, hospitals, local energy and transport enterprises,...). –Exchange on the use of the databases developed by the different international standards

Conclusion This is a priority program in the view of the Statistics Directorate of the OECD: Objective: serve our main users (macro- economists inside and outside the OECD) by enhancing the relevance and the comparability of the national accounts data on general government. Means: international task force, national accounts meetings, consultations of member countries, and practical recommendations for implementation