What is IPSASB?
The International Public Sector Accounting Standards Board (IPSASB) is an independent international body that develops and issues International Public Sector Accounting Standards (IPSAS). It was established by the International Federation of Accountants (IFAC) and aims to improve public sector financial reporting worldwide by enhancing the consistency, comparability, and transparency of financial statements.
Objectives of IPSASB:
- Establish High-Quality Standards: Develop high-quality international public sector financial reporting standards.
- Promote Adoption and Implementation: Promote and facilitate the adoption and implementation of these standards globally.
- Enhance Reporting Transparency: Improve the quality, consistency, and transparency of public sector financial reporting.
- Increase Accountability: Help governments and other public sector entities demonstrate accountability and good governance.
Examples of IPSAS:
- IPSAS 1 (Presentation of Financial Statements): Defines the basis for presenting general-purpose financial statements for public sector entities.
- IPSAS 23 (Revenue from Non-Exchange Transactions): Provides guidance on accounting for revenue from transactions where the entity receives value without directly giving approximately equal value in exchange.
- IPSAS 31 (Intangible Assets): Specifies the accounting treatment for intangible assets within the public sector.
Frequently Asked Questions (FAQs)
What is the role of IPSASB?
The role of IPSASB is to develop and promote high-quality public sector accounting standards, enhancing financial reporting transparency and accountability across the globe.
Why were IPSAS developed?
IPSAS were developed to improve the quality and consistency of financial reporting in the public sector, helping entities provide reliable, comparable, and transparent financial information.
How do IPSAS differ from IFRS?
While IPSAS are tailored for the public sector, International Financial Reporting Standards (IFRS) are mainly designed for private sector entities. IPSAS addresses specific public sector issues that are not covered by IFRS.
Who uses IPSAS?
IPSAS are primarily used by governments, their agencies, and other public sector entities. However, they may influence other standards for similar entities internationally.
Is the adoption of IPSAS mandatory?
Adoption of IPSAS is not mandatory; it depends on the regulatory framework of each country. However, many jurisdictions voluntarily adopt IPSAS to improve financial reporting standards.
Related Terms
International Financial Reporting Standards (IFRS)
IFRS are accounting standards issued by the International Accounting Standards Board (IASB), used predominantly by private sector entities to ensure transparent and comparable financial statements globally.
Public Sector Accounting
This field focuses on accounting in government and not-for-profit organizations, emphasizing accountability and transparency in financial reporting.
Governmental Accounting Standards Board (GASB)
GASB is an organization that provides accounting standards specifically for state and local governments in the United States, similar to how IPSASB serves the international public sector.
Online References
- IPSASB Official Website: www.ipsasb.org
- International Federation of Accountants (IFAC): www.ifac.org
- International Public Sector Accounting Standards (IPSAS) Handbook: Available at IFAC website
Suggested Books for Further Studies
- “IPSAS Explained: A Summary of International Public Sector Accounting Standards” by Thomas Müller-Marqués Berger
- “Public Sector Accounting” by Rowan Jones, Maurice Pendlebury
- “Handbook of International Public Sector Accounting Pronouncements” by IPSASB
- “Governments and Not-For-Profit Accounting” by Michael H. Granof, Saleha B. Khumawala
Accounting Basics: “IPSASB” Fundamentals Quiz
Thank you for engaging with this comprehensive overview of IPSASB and participating in our fundamentals quiz. Continue your learning journey to master accounting principles!
