In This Issue:
1. IPSASB Accelerates Conceptual Framework Initiative
2. Work Started on Reviewing IPSASB's Governance Structures
3. IPSASB Issues Service Concession ED
4. Communications Report Released at April IPSASB Meeting
5. Share IPSASB eNews with your Colleagues
1. IPSASB Accelerates Conceptual Framework Initiative
The International Public Sector Accounting Standards Board (IPSASB) is accelerating its efforts in the development of the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities (the Framework), with the goal of completing it as quickly as reasonably possible.
The Framework initiative is the IPSASB's most important project over the next three years and is therefore being prioritized in all planning and resource allocations. It will explicitly identify and explain the concepts, definitions and principles underpinning IPSASs and related guidance. John Stanford, IPSASB's Deputy Director, has taken on the role of Project Coordinator in order to ensure that all components can be completed expeditiously and are well integrated.
This project, launched in 2006, involves four phases, which are progressing as follows:
1. Reviewing the responses (now over 50) from stakeholders to the Consultation Paper Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities: The Objectives of Financial Reporting; The Scope of Financial Reporting; The Qualitative Characteristics of Information Included in General Purpose Financial Reports; The Reporting Entity.
2. Discussing issues related to the definition and recognition of elements
3. Discussing issues related to measurement
4. Discussing issues related to presentation and disclosure
The IPSASB is well under way in phases 2 and 3, for which Consultation Papers are expected to be released in 2010. The Consultation Paper for phase 4 is expected in early 2011.
The first Consultation Paper, published in September 2008, can be accessed at IFAC's Exposure Drafts and Consultation Papers webpage.
2. Work Started on Reviewing the IPSASB's Governance Structures
The IPSASB has launched discussions regarding developing a new plan for its strategy and operations, including proposed fundamental changes to some of its governance structures. These discussions are in the early stages and have been informed by various comments and concerns that have been raised by constituents at IPSASB meetings and various other meetings.
One of the most important aspects of these discussions is the need to develop a process for public oversight of the board's work. Unlike the other IFAC standard-setting boards, the IPSASB is currently not subject to oversight by the Public Interest Oversight Board (PIOB). The public sector clearly has a strong public interest mandate, and the need for oversight for the IPSASB has been anticipated by IFAC's reform process.
IFAC and the IPSASB will continue to discuss this and other related issues and together are developing a plan for consulting with various governments and other stakeholders on proposed changes and the related impacts.
3. IPSASB Issues Service Concession ED
The IPSASB is seeking comments on an exposure draft (ED) that addresses accounting for service concession arrangements (SCAs) by the grantor. Titled Service Concession Arrangements: Grantor, the ED presents requirements and guidance on how grantors recognize, account for, and disclose assets in service concession arrangements.
Service concession arrangements, often called Public-Private Partnerships, or PPPs, involve an operator providing services to the public on behalf of a grantor - usually the government or another public sector entity. There has been a demand for more accounting guidance for the grantor and the IPSASB's ability to develop draft guidance is strongly supported by constituents.
Comments on the exposure draft are requested by June 30, 2010. To access the exposure draft or submit a comment, visit the IFAC Exposure Drafts and Consultation Papers webpage.
4. Communications Report Released at April IPSASB Meeting
The IPSASB prepared a Communications Report outlining the full extent of the communications and liaison activities undertaken by IPSASB Members, Technical Advisors (TAs) and staff during 2009.
In summary, the report revealed the following details:
- Over the course of 2009, an impressive array and volume of communications and liaison activities were undertaken on behalf of the IPSASB. Over 82% of Members (14/17), as well as many TAs and IPSASB staff, undertook these activities;
- Over 150 activities took place in 2009, including meetings, presentations, publications and teleconferences;
- These communication activities reached all geographical regions around the world; and
- Approximately 30 countries and over 50 cities worldwide were visited.
5. Share IPSASB eNews with Your Colleagues
The IPSASB issues regular eNews updates to keep you current on its activities and recent publications. Please forward this eNews to any interested colleagues and let them know that they can subscribe to this and other eNews bulletins at the eNews sign-up page at www.ifac.org/e-news.
ACCOUNTANTS: SUSTAINING VALUE CREATION
The 18th World Congress of Accountants, hosted by the Malaysian Institute of Accountants and IFAC, is November 8-11, 2010. The Congress will offer more than thirty panel discussions and speakers from The World Bank, Transparency International, the Financial Stability Board, the European Commission, IFIAR, and the IASB, among others. Thousands of delegates representing the profession from around the world will attend.
Register now!
For more information about any of the items mentioned above or other information about the IPSASB, please contact: communications@ifac.org or visit the IPSASB's home page at www.ipsasb.org.
About the IPSASB and IFAC
The IPSASB (www.ipsasb.org) develops high quality accounting standards and guidance for use by public sector entities around the world. The IPSASB, an independent standard-setter operating under the auspices of IFAC, promotes adoption of and convergence to its standards globally.
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 159 members and associates in 124 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international accounting standards through the IPSASB, IFAC, through its independent standard-setting boards, sets international auditing and assurance, ethics, and education standards. It also issues guidance to encourage high quality performance by professional accountants in business.