A Practical, Authoritative Guide to IPSAS
Designed to promote enhanced quality and consistency in public sector accounting across the world, the International Public Sector Accounting Standards provide an accounting framework which can be followed by all public sector entities, including national and regional governments, local authorities and intergovernmental organizations.
Interpretation and Application of IPSAS is a practical guide to implementing the standards. Beginning with an analysis of the role of the International Public Sector Accounting Standards Board, it goes on to provide a complete description of each standard, along with plentiful case studies and examples demonstrating how to apply it in practice. Detailed guidance is also provided on managing the transition from local standards to IPSAS, under either accrual or cash accounting.
This practical focus makes Interpretation and Application of IPSAS the ideal resource for both current and potential adopters of the International Public Sector Accounting Standards.
"This book on the practical adoption and implementation of IPSAS for public sector entities will be a useful tool for both academic students at the undergraduate as well as the graduate level. In addition, its practical focus will enable practitioners and regulators to have access to a wide range of accounting examples and issues that public entities will face when moving towards IPSAS compliant financial reporting."
Gérard A. Melyon, Ph.D., Professor of Accounting, Sorbonne Universités, France
"This book enables the reader to better understand the practical application and implementation of IPSAS. The book offers multiple practical examples and case studies that help us to grasp the accounting issues that public sector entities are experiencing when moving towards IPSAS based accounting and financial reporting."
Isabel Brusca, Ph.D., Professor of Accounting, University of Zaragoza, Spain
About the Authors xi
List of IPSAS with Corresponding IFRS xiii
List of IPSAS with Brief Description xv
Part 1 Introducing Public Sector Accounting
1 Introduction 3
2 Why Converge Public Sector Accounting Practices? 11
3 The IPSASB 17
Part 2 Accrual–based IPSAS
4 The IPSASB Conceptual Framework and Key Accrual Accounting Concepts 35
5 Financial Statements 55
6 Disclosure Standards 109
7 Long–Term (Non–Current) Assets 123
8 Current Assets 167
9 Service Concession Arrangements: Grantor 175
10 Leases and Leasing Arrangements 187
11 Revenues and Expenses 207
12 Employee Benefits, Social Benefits, and Other Liabilities 243
13 Provisions and Contingencies 257
14 Budget Reporting 271
15 Financial Instruments 285
16 Consolidations and Strategic Investments 307
17 Specific Standards: Accounting for Agriculture and Accounting in Hyperinflation Economies 327
18 Recommended Practice Guidelines (RPGs) 339
Part 3 Cash–Based IPSAS
19 Cash Basis IPSAS 351
Part 4 Making the Transition to IPSAS and Closing
20 Making the Transition to IPSAS 375
Annex 1: Brief Description of IPSAS 409
Annex 2: Key Characteristics of Public Sector Entities 413
Annex 3: Employee Benefits: An Overview of the Key Principles 415
Annex 4: Appendix to Chapter 21. Transition to IPSAS. Case Example: Iceland IPSAS Implementation Plan 417
Caroline Aggestam Pontoppidan, Copenhagen, Denmark is an Associate Professor in Public Sector Accounting and Auditing at Copenhagen Business School. She is also a project manager for UNOPS (an operational arm of the United Nations, helping a range of partners implement $1 billion worth of aid and development projects every year) overseeing the implementation of International Public Sector Accounting (IPSAS). Previous experience includes audit work and project management with The Global Fund to fight Aids, Tuberculosis and Malaria, Geneva, Switzerland, UNCTAD, Geneva, Switzerland and the UNICEF Supply Division, Copenhagen.
Isabelle Andernack, Meudon–la–Forêt, France is Accountancy Administrator, BIPM (International Bureau of Weights & Measures). She is the project leader of the BIPM transition from cash accounting to the accrual basis of accounting under IPSAS. Her current teaching activities include: IPSAS, consolidation and public management courses at Paris I Panthéon–Sorbonne (Master 2 Audit, Contrôle et Management Public), IFRS in order to prepare the CIIA at CFAF (Training Centre for Financial Analysts). She is formerly a Partner, and Technical Director of audit division, Fiducial Audit, as well as having worked in the Audit and IFRS teams at Deloitte, PwC and KPMG.