International Federation of Accountants International Public Sector Accounting Standards Board Mike Hathorn, IPSASB Chair IFAC Council Washington, D.C. November 17, 2009

Standard Setting Adopted by private sector over 200 years ago Adopted by public sector 20 years ago Accrual Accounting in The Public Sector

International and inter-governmental organisations play an increasingly key role in a global world Poor financial management can result in a huge economic cost to both national and world economies Global economic crisis emphasizes need for transparency Diversity in current practice an obstacle to transparency International Convergence of Public Sector Standards

Single set of high-quality globally accepted public sector accounting standards –Converge with IFRSs –By December 31, accrual IPSASs; 29 of these substantially converged with IFRS –3 Public sector specific standards plus cash basis –Conceptual framework – in process International Public Sector Accounting Standards

Converge with IFRSs IPSASs (Public Sector) IFRSs (Private Sector) Terminology Public sector guidance Public sector issues Public sector examples

Target is to have IPSASs approved by December 31, 2009 for all IFRSs as of December 31, 2008 Remaining IPSASs to be finalized: –Financial instruments –Intangible assets –Entity combinations –Agriculture –Improvements Continued liaison with IASB Converge with IFRSs

UN System (28 bodies, at latest by 2010), including UN World Food Program implemented in 2008 OECD, NATO (21 bodies), EC, IFAC, INTERPOL Switzerland, Israel, South Africa, Austria Over 80 countries have agreed processes or have a project in place to adopt IPSASs or align with IPSASs Brazil (2012), Russia, India, China have indicated their intention to adopt Adoption of IPSASs

International Federation of Accountants