The Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities

The Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities (the Conceptual Framework) provides the International Public Sector Accounting Standards Board® (IPSASB®) with the concepts that underpin the development of International Public Sector Accounting Standards® (IPSASs®) and Recommended Practice Guidelines (RPGs).

It enables the IPSASB to further improve the consistency of its standard-setting by strengthening the linkage between IPSASs. Additionally, the transparency of the concepts underpinning the development of IPSASs and RPGs enhances the IPSASB’s accountability.

The Conceptual Framework also responds to key public sector characteristics in its approach to elements (the building blocks of financial statements), the measurement of assets and liabilities, and the presentation of financial reports, while focusing on service recipients’ and resource providers’ needs for high-quality financial reporting information for both accountability and decision-making purposes.

The Conceptual Framework was developed and approved in 2014 by the IPSASB and was originally published in October 2014. In 2023, Chapters 3, 5, and 7 were updated.