Dr.

Jesse Hughes, CPA, COA, CGFM Professor Emeritus Old Dominion University Norfolk, Virginia, USA

IPSAS Framework

Cash Budget Sustainability

Performance

Consolidated Statements
Budgetary Entities
Government Business Enterprises All Other Entities

Whole of Government

Statement of Cash Flows

Budget to Actual Statement

Financial Position Statement

Financial Performance 3 Statement

Steps to Implementing Part 1 of the Cash Reporting IPSAS

1.
2.

Separately identify the budgetary entities, the Government Business Enterprises (GBEs), and all other government entities. Perform the following for budgetary entities:
a.

b. c.

Establish good cash accountability by implementing a Treasury Single Account and preparing a Cash Receipts and Payments Statement with appropriate footnotes. Maintain good fiscal discipline by publishing an annual budget and preparing a Budget to Actual Comparative Statement. Prepare a Management Discussion and Analysis (MD&A) to explain the financial statements. (Not required by IPSAS.)

3. 4.

Perform the above for GBEs and all other government entities. Prepare consolidated whole of government financial statements.
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Steps to Implementing the Accrual IPSAS

1.

For budgetary entities, progressively implement Part 2 of the Cash Reporting IPSAS.
a. b.

c.
d.

Ensure that all liabilities are identified and reported in a Schedule of Liabilities. Ensure that all assets are identified and reported in a Schedule of Assets. Prepare an Opening Statement of Financial Position to include all assets and liabilities. Implement the Accrual IPSAS along with a MD&A.

2. 3.

Perform the above for GBEs and all other government entities. Prepare consolidated whole of government financial statements.

Go Slow!! It may take 10 years or more.

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Current IPSAS Board Efforts

Reviewing the Cash Reporting IPSAS
Preparing a Conceptual Framework Preparing Consultative Papers on Key Characteristics,

Performance Measures, and Presentation Formats Approving an IPSAS on Long-Term Fiscal Sustainability

Accounting Standards Committee Appointees

Jesse Hughes, Chair (US)
Masud Mazaffar (Pakistan) Michael Parry (UK)

N. Tchelishvili (Georgia)
Andrew Wynne (UK)

Additional members welcome. Send nominations to jhughes@odu.edu.

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Paris, France 8-9 March 2012 oecd.org/document/29/0.3746.en_2

Public Sector Critical Projects in progress (Andreas Bergman, IPSASB)

Long-Term Sustainability of Public Finances - ED of

Recommended Practice final planned 2012 Public Sector Combinations - Consultation Paper June 2012 Cash Basis Review - Task Force reported: May 2010; Review pending funding Financial Statement Discussion and Analysis ED planned next week Reporting Service Performance Responses to CP due April 15, 2012 Alignment of IPSASs and GFS CP June 2012 First Time Adoption CP/ED 2012
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GFSM 2001 Update (Sage De Clerck), IMF

Highlighted the need to continue with efforts to

harmonize statistical guidelines and public sector accounting reforms IMF/IPSASB Alignment Taskforce are working on:
GFSM appendix on accounting and statistical linkages Update of matrix of remaining differences Model Chart of Accounts to illustrate how to harmonize

reporting requirements, following a building block approach

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