Implementing International Public Sector Accounting Standards (IPSAS)

Introduction:

International Financial Reporting Standards (IFRS) provide a set of common standards that organizations must adhere to. During this International Public Sector Accounting Standards (IPSAS) course, participants will explore how these standards serve as crucial instruments for strengthening a global regulatory framework and enhancing the quality of financial information.

In this IPSAS course, participants will learn how to adjust and standardize accounting principles and practices for the presentation of financial information across various nations. IFRS establishes procedures and rules for measuring and reporting the elements of financial statements, as well as for recording and disclosing transactions or other events within accounting and reporting systems.

The International Public Sector Accounting Standards (IPSAS) are specifically designed guidelines for the public sector, focusing on the principles and standards necessary for financial reporting. Approved by the IPSAS Board, these standards aim to improve financial reporting worldwide by promoting transparency, accountability, and efficiency.

Adopting IPSAS ensures the high-quality reporting of financial information, which facilitates meaningful stakeholder engagement. Other benefits of IPSAS adoption include better financial management and increased credibility of financial information in the public sector, leading to improved global practices in public sector accounting.

Objectives:

At the end of this Implementing International Public Sector Accounting Standards (IPSAS) course, participants will be able to:

• Explain the International Public Sector Accounting Standards (IPSAS).
• Understand specific requirements for financial statements and disclosures under IPSAS.
• Comprehend the key steps involved in adopting and enhancing accrual accounting and IPSAS in public entities.
• Acquire knowledge on the expectations of compliance with international standards in the public sector.

Training Methodology:

• Simulations
• Case studies
• Teamwork
• Interactive teaching
• Discussions

Course Outline:

Unit 1: Overview of IPSAS

• The central role of the IPSASB Council.
• Objectives of financial reporting in government.
• Key articles of the International Public Sector Accounting Standards.
• Preparation of reports in accordance with International Financial Reporting Standards (IFRS).
• Framework for the presentation of public accounts.
• Transparency and accountability aspects.
• Principles of finance and accounting practices adopted.
• Challenges in performance measurement in government accounting.

Unit 2: IPSAS Standards

• Analysis of current compliance factors with International Public Sector Accounting Standards (IPSAS).
• Alignment of financial records with IPSAS.
• Minimum requirements for IPSAS application in the government’s civilian structure.
• Issuance of the Statement of Financial Position.
• Issuance of the Statement of Cash Flows.
• Policies, changes in accounting estimates, and correction of errors.
• Public sector accounting standards based on both accrual and cash methods.
• The overall structure of IFRS concerning the government sector.

Unit 3: IPSAS for Government Financial Performance

• Revenue generated from the exchange of goods and services.
• Non-exchange revenue.
• Construction service agreements.
• Employee accountability and remuneration.
• Accounting for lease agreements.
• Recognition of expenses and revenue.
• Accounting for provisions and trust funds.

Unit 4: IPSAS for Government Assets, Liabilities, and Properties

• Accounting treatment of fixed assets and depreciation.
• Accounting treatment of intangible assets.
• Recording stocktaking, waste, and write-offs.
• Accounting for ways and means advances extended to the government.
• Restructuring financial statements post-asset purchases.
• Accounting for reserves, provisions, onerous liabilities, and constructive obligations.
• Accounting for uncertain debts and profits.

Unit 5: Preparation of Financial Statements in Accordance with Global Standards

• Balancing government accounts following the financial year’s end.
• Finalizing and preparing government accounts for submission to the legislature.
• Presentation of cash flow statements.
• Post-balance sheet events.
• Disclosure of budget-related data in the public domain.
• Classification of budgetary information in financial statements.