PUBLIC SECTOR

Accountancy SA,  Feb 2006  

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INTERNATIONAL PUBLIC SECTOR STANDARDS UPDATED TO CONFORM IWITH IFRSs

The International Public Sector Accounting Standards Board (IPSASBI has issued ED 26 - Improvements to International Public sector Accounting Standards that proposes changes to 11 accrual basis IPSASs to better reflect developments in the equivalent IFRSs. To assist accountants in applying IPSASs, the IPSASB has issued ED 25 - Equal Authority of Paragraphs in IPSASs. This ED proposes that the Prefaces to International Public Sector Accounting Standards, be revised to clarify that all paragraphs within IPSASs have equal authority.

Closing dates for comments on the exposure drafts were 31 January 2006.

STANDARDS TO ENHANCE TRANSPARENCY OF GOVERNMENT FINANCIAL STATEMENTS

The exposure draft ED 27 - Presentation of Budget Information in Financial Statements has been issued and deals with the reporting of budget information in general purpose financial statements. It applies to entities that are required to make publicly available the approved budgets for which they are held accountable. It proposes the disclosure of the original and final approved budgets and actual financial information on a comparable basis to the budget.

The IPSASB has also issued ED 28 - Disclosure of Financial Information about the General Government Sector. Statistical bases of financial reporting require governments to present financial information about the general government sector, which comprises those entities that fulfil the core functions of government as their primary activity.

Statistical reporting bases and IPSASs have many similarities in their treatment of particular transactions and events, but there are also differences. This can be confusing to users, particularly in jurisdictions in which governments issue financial reports prepared in accordance with both statistical and accounting reporting bases. This exposure draft proposes disclosure about the general government sector in general purpose financial statements and mechanisms to better explain those differences. The ED does not require disclosure of such information, but prescribes reporting requirements that must be adopted by governments that elect to make such disclosures.

Comments on both ED 27 and ED 28 are requested by 10 February 2006.

Copyright South African Institute of Chartered Accountants Feb 2006
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